25 questions
Barter can be defined as:
The purchase of goods on hire purchase
The Exchange of goods for money
The exchange of goods for goods
The earning of foreign exchange through export
A consumer is a person who:
Uses goods and services produced by other people
Is an economic animal
Produces the goods they need
Buys for re-sale
In most Caribbean countries the predominant type of economic system is:
Laissez-Faire
Centrally Planned
Socialist
Mixed
An economic system where producers and consumers are the main decision makers is called:
Traditional economy
Planned economy
Free Market economy
Mixed economy
A system of trading where goods are exchanged for other goods are called:
Double coincidence of wants
Barter
Rate of exchange
Division of labour
In a planned economy, resources are allocated based on the decisions made by:
Consumers, producers and government
Producers
Government
Consumers and producers
In which type of economy is demand and supply used to determine price?
Mixed
Both planned and Mixed
Free Market economy
Planned
Which of the following is NOT a function of money?
Measure of value
Medium of exchange
Not divisible
Store of Value
Which of the following commercial organisations might any member of the public be allowed to purchase shares?
Government agency
The Central Bank
Co-operatives
Limited liability Corporation
In a public limited company, losses are incurred by:
Shareholders
Community
Employees
Directors
Which of the following characteristics of the sole trader form of business is NOT advantageous to the owner?
Unlimited Liability
Low operational Costs
Ownership of all profits
Good communication with clients
Which of the following business organisations can sell its shares on the stock exchange?
A private limited company
A sole proprietorship
A public limited company
A co-operative
A group of four people want to pool their resources and operate a large department store. Which of the following forms of business organisation could they establish?
I. A private company
II. A partnership
III. A co-operative
IV. A public corporation
I and II only
III and IV only
I, II and III only
II, III and IV only
Which of the following involves selecting the objectives and procedures for achieving goals?
Planning
Organising
Controlling
Motivating
The money used for the day to day operations of an organisation is called:
Working Capital
Nominal Capital
Fixed
Capital
Which of the following are the functions of a business unit?
I. Production of goods and services
II. Creation of Jobs
III. Maximisation of Sales
IV. Education of workers
I, II and III only
I, II and IV only
i, II and IV only
II, III and IV only
Which of the following results are LEAST likely to occur from growth in an organisation?
Increased levels of capital
More Specialisation
Increased Communication
Greater levels of productivity
The term Chain of Command refers to
The number of persons supervised by a supervisor
The manner in which directives are communicated from the top to the bottom of an organisation
Who gets to give the orders
The ranking of persons within the firm
Which of the following is a fixed asset?
Van for delivery of stock
Refrigerator for sale
Motor Vehicle for family use
Lawn Mower for private use
Which department would respond first to an increase in the demand for their product?
Personnel department
Finance Department
Production department
Marketing department
Which of the following are functions of management?
I. Co-ordinating the work of employees
II. Delegating work to subordinates
III. Controlling employees and raw materials
IV. Ensuring that employees join a trade union
I and II only
II and III only
I, II and III only
II, III and IV only
Which of the following is the best definition of the term 'span of control'?
The number of employees a manager supervises
The value of assets of the firm controlled by a particular manager
The extent to which directives of a manager are obeyed by staff of the organisation
The organisational structure of the firm
An organisation in which authority is delegated from top to bottom with each manager being responsible to a higher authority is called?
Bureaucracy
Hierarchy
Line Organisation
Staff organisation
Informal organisations are often criticised because:
They were not established by management
They communicate too efficiently
They often carry inaccurate information
They carry information not approved by management for dissemination
The role of a finance manager within a firm is to:
Determine who gets hired and fired
Establish policies for the firm
Ensure that the products of the firm are sold
Advise Management and the board on appropriate financial policies