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906-4493 , 968-A427

Per 1 June 2007

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Which one of the f<rllowing BESI' explains 5. Which options BES'I representthe ohjectives
the term' privatization' ? of the CSME?

(A) The selling of government assets to I. Politicalintegration

a private business ll. Common external taritl
(B) BusinessesoperatingprivatelY TII. Frcc movement of PeoPle
rvithout starc interference IV. Free movement of caPital
(C) The transfer of ownershiP from
public sector to Private entity (Ai lll and lV onlY
(D) When a business, public or private' (B) I, Ill and IV orrlY
' decidcs to keeP decisions secret (C) II, III and IV only
{D) I, fI, lll and IV

'l'he ability of a registered company to enter

in a contract is bascd on the corrtpatrl''s (iol'ernrnent's pay.ment, to a domestic
producer. in the fonn of a tax relief is known
(A) iimitedliabihlv AS

(l]) iegal personaliry

(C) articles of incorPoration (A) quota
(D) memorandum of association (B) tariff
(C) subsidy
(t)) corporate tax
The mission slatement of an organization
defi nes the organ ization's
1. In a planned ecorlomy, the government may
(A) purpose and direction seek to correct market failures bY
(B) strategic objectives
(C) long-temr goals *'hich it hopes to (A) advertising reform
achieve (B) offering welfare benefits
(D) strategic. tactical and operatiorral (C) making ectxomic decisions
objectives (D) ralioningthc supPlY of goods

One advantage of a nrixed economy is that Caribbean privatc scctor organiTstions are
largel;- intluenced b;- their
(A) the state pr<rvides public g<rods
(B) there is no wasteful comPetition (A) conccrn for the t'lora and fauna
(C) thc price of all goods is dictated by (t]) desire to sun'ive or gain high profits
rnarket lorces (C) desire to lunction in an open honest
(D) the private sector provides essential m:r[ner
sen'ices for consumers (D) desire to correct inequities in pay
packages

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906-4493 , 968-8a27

Which of the following are benefits of

9. Which one of the following is a feature of
10.
Caribbean-based multinational companies?
co$push inflation?
t. Reduced imports
II. Increased productivity
(A) Hi$ levelofwages IU. Repatiation ofprofits
IV, Creation of employment
(B) Lower co$ ofproduction

(c) Increase inthe money supply (A) I and [V only

(B) IIIand [V only
(D) Increased demand for goods and
(C) L II and III only
serrices (D) I[, il, and tV only

IlelaEAL. la referto the networft diagram below.

ll The critical path is 13. The duration of the CPA is

(A) A-C.D.F (A) 16 day's

(B) A-C.E-F (B) t7 days
{c) A-B-D-F (C) 21 days
(D) A.B.C.D.E.F (D) 28 days

12. In which of the following activities can work

be delayed?

(A) BandDonly
(B) CandEonly
(C) A, C, E, and F
(D) A, B, D and F
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906-4493, 968-8427

l4 St. Nolbs, a Caribb€an Island, has beon f 9. At which stage in group formation does
experiencing a dccline in its GDP for the past conflict and resistance arise?
six months. How would this economic
situation afFect local producers? (A) Forming
(B) Norming
(A) Reduce demand for workers (C) Storming
(B) Extend product range for designer (D) Performing
products
(C) fncrease output for goods and
services 20. A leadercan BEST bedescribed asonewho
(D) lmprove relations b€t\neen
employers and employees (A) emerges from within the group
(,8) is appointed to a position of formal
authority
l5 How would tlritish tourists r:rvelling to (C) organizes resources to meet the
Paradise Island be recorded in the Balance objectives of rhe organization
of Payments of Paradise tsland? (D) influences others to perform beyond
the actions dictated by formal
(A) Increa-se invisible trade authority
(B) f)ecrease in visible trade
(C) Increase in invisiblc trade
iD) Decrease in invisible trade 21. The person who is elected at the warkplace
to represent union members at a local level is
the
t6 An organizational struchrre which is'task'or
'proj€ct' focused is said to be (A) shop steward
(B) branch ofYicer
(A) marrix (C) executiv€ leader
(B) functir:nal (D) trade union leader
(C) concentric
(D) hierarchical
22 - T?re tearn member who is action-oriented and
enjoys challenges is BEST described as
t7 'I'he assignment of tasks, grouping of 'tasks'
into departments and allocating ofresources (A) a shaper
are the management function of (B) an evaluator
(C) a specialist
{A) leading (D) a resource investigator
(B) plaruring
iC) orppnizing
(D) conrrolling 23. Which one of the following organizational
structures is a multinational corporation
MOST likely toadopt?
t8 Which one of the following theorists referred
to man as an "Economic Animal"? (A) Marrix
(A) (B) Functional
Henri Fayol (C) CeograPhical
(B) FrederickThylor (D) Product based
(C) Abraham lvlaslorv
(D) Frederick Herzberg

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-rul$i.'*
;.?ft!5, "T;t:H;;

24. When the marketing manager advises the 2E ln Maslow's hierarcby of necds, in which
production matrager on a new product, rvhat level of needs does 'OPen and honest
type of authority is displayedbythe marketing communication among employecs' belong?
manager?
tA) Safety
{A) Line (B) Esteem
(B) Staff (C) Self aczualization
(C) Funaional (D) Social
(D) Line and Staff

29 the BCC Banking & Investment Company

2S When Sonia Green, the Marketing Manager isplaruring to computeriae some of its services
ofSonia's Shoe Stores, s€ts new sales targets within the next six months. I{ow BEST
and develops strategies to achieve them' she should management implemant this change?
is de.nonstraring the menagement function of
(A) 'Leak' iniormation and await
(A) Ieading feedback and train the remaining
(B) planning employees.
(C) conholling (B) O{fer voluntary severance and train
(D) organizing the remainin g work force'
(C) Meet with key personoel and await
feedback pricr to implementation'

26. ln the communications Process! anything

(D) Implementaredundancyprogramme
which distracts the receiver from receiving with immediate effect.
the message is known as

(A) noise 3{} Christopher sought the legal advice of a

(B) an cncoding tnbunal because of an unfair dismissal at his

(C) a decoding workplace. An L|NLIKELY decision of the
tribunal is that the emPloYec
{Di feedback

(A) sues the emPloYer

27. Upward communicatron occurs when (B) be reinstated in ttre same job
(C) be reinstated in another job
(A) instructions are given to subordimtes (D) receives compensation tbr the unfair
(B) objectives are communicatcd to the dismissal
rank and file
(c) employees are allowed to exPress
their views
(D) members of staff coordinate tasks
within thcir deParlments

)
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3I . \llhich one ofr.he following is NOT monitored 37 - \Vhich one of the following sources of finance
by u'orking capital management? is LEAST likety to be used as invesrment in a
new product development?
(A) Stock
(tl) Debtors (A) Debentures
(C) Creditors (B) Share issues
(Di Fixed assets iC) Bank overdraft
(D) Bank loan
32. Which one of the following is m extemal
.lonll-term source of finrueing? 38. A main draw'back of leasing is that

(A) Leasing (A) the asset is not owned b:r' the Iessee
(B) Trade credit (B) it is a binding contract with the lessor
(C) Share capital (C) onl-v t}e short term cash flow pnsition
(D) Hire purchase is improved
(D) a periodic payment is made over the
33. \f/hich one of the following is NOT a financial , life of the agreement
sfatem€nt?

(A) Trial balance 39 . Sunshine Limited keeps records and accounts

(B) Balance sheet of all of its financial transactions. Which one
(C) Cash flow statement ol'the follo*.ing groups is the IVIAIN user of
. (D) Profit md loss account the fi nancial information?

(A) Suppliers
34. lf a corrpany is highly geared, ir means that a (B) Employees
high proportion of its finance is (C) (iovernment
(D) Marragement
(A) cash
(Bi loan
(Ci profit 40 . An increase in the provision lbr doubtfirl debts
(D) equity u,ill rcsult in

(A) an increase in current assets

35. Which one of the following is NOT an (B) an increase in crrrre.nt liabilities
investment appraisal technique'l (C) a credit adjusrment ro rhe income
statement
(A) Cost benefit .
a debit adjustmcnt to the income
(B) {D)
Paytrack period
statement
(C) Net present value
(D) Average rate of rerurn
41. Slraigbt-line depreciation is MOST suited to
an asset which
36. The balance sheet equation can be wrifien
as
(A) is more efficient in the early years
(A) CA r- CL: C -+ L
(B) is more efficient in rlre later years
(B) FA-CA:C+L (C) provides th€ same quality of service
(C) CA(F+CL):C+L in all years
(D) F-|(CA-CL):C+t- (D) needs frequenr repairs and
maintenance as it gets ol{er

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42. Which of the following costs will appear in 44 Tbe foliowing is an extract of a firm's balance
the cost of sales of a retailer? sheet as et 31112106.

I. Advertising EXTRACT
II. Carriage In
III. Purchases Capital
Opening $200,000

v. Depreciation Profit
Net $100,000
Drarvings S 50.000
(A) I and II only $3s0'0tr)
(B) Iand III only
(c). II and III only
(D) iI and IV only The return on capital invested is

(A) ttr,
43. M&T Ltd has issued 50 000 sharcs at $2.00
EACH. the company's net profit after tax (B) 4OV6
is $212 000. At the end of the year the
market vaiue of the shares is $3.75. (c) 50%

The eamings per share ratio is (D) 80o/o

(A) $4.75
(B) s4.25 Item. 1,5 refers to the following table
(c) $2.75
(D) s2.00 Net cash inflow from operation $46 000
'laxation pard $12 000
Par.rnent of frxed asset $19 000
Share issue $13 000

45 1'he closing cash balance is

(A) $ 2 000
(B) $26000
(c) $28 000
(D) $40ooo