[CHOICE QUE Hatonoe Sheet as at 30 June 2013 s Fixed Assets 60 000 Opening capital k 12800 Net profit Debtors 17600 fees Bank 9.500 Drawings ; 99,900 2. Whichofthe following isLEAST kel — Toone contribute to ceonamies of Finance Marketing Creditors 5.600 “Technology Geographical Accrued expenses 5200 Sonatas (©) Product based 10 800 3. Thetermtechnologicalobsoleseencereirs 8. 99,900 to technology being (A) outdated ‘Compute, correct to one decimal place, the ratis below forthe year ended 3¢ June 2013, ‘and explain what EACH ratio indicates about the performance ofthe company. i) Acid Test {S marks a : 4, TeadeiberizationmaybeBESTaeserbad 9 Gearing Ra 15 marks} (A) ficemovement of capital Net Profit Margin 15 marks] (@) removal of tading barriers (©) tnesrcted moverert of goods (iv) Return on Capital or Equity [5 marks} (0) independence of tang pers “Total 25 marks 5. One fetueofe public imites company is tat (A) the shares are traded on the stock 10, END OF TEST Architectural firm have decided to work to themselves Joint venture ‘co-operative(CXC CAPE MOB UI P! /APER 2 + SAMPLE MULTIPLE CHOICE ESTIONS, (CXC CAPE MOB U1 PAPER 2 + SAMPLE MULTIPLE CHOICE QUESTIONS u n, 2. Which of the following isa.festate Test push if Increased demand Which of the following BEST expl costs of unemployment 1 8 country? (A) Ahighly efficient workforce ease in frcign reserves Increased costs for Reduced demand fer goods and wider variety of good. Lozal prsducersare protected fom unfair competition Which ofthe following is NOT: of globalization to Caribbean firs? (A) Wider market acer (G3) Increased competition ) o 15. nr. 1. ‘A Cariboean island, tas been expericnsing sadectine in How would th DP forthe past six months. ‘economie sitation affect, focal producers? w we) © © Improve relations between ‘mmployers and employees. Extend product ringe for designer products Increase output for goods end Reduce demand for workers. Douglas McGregor Which of the folowing is a nonefinancial reward? w @) o Gain sharing Job sans bonuses Employees stock ownership plan Es0P) authority figures ‘management and customers thefinetionalareesofmanagement sdistertedwhen scelectronic medium isused (a) Compute for BACH project (@ the payback period [6 marks} the net present value. [9 marks} (b) Suggest tothe company the best ‘option based on the net present value method. State a reason to support your answer. [2 marks) (©) Identify TWO possible sources of finance that Effective Solutions Ltd could consider for the investment project chosen. [2 marks} (4) Outline THREE factors thet Effective Solutions Ltd should consider when choosing asource ‘of finance for the project chosen. [6marks} ‘Total 25 marks 6. ) [2marks| ch ratio analysis is important to businesses. [3 marks} e v2 are the financial statements of Ross Enterprise for the year ended Income Statement for the Year Ended 30 June 2013 s s Sales 81 600 Opening stock 16 000 Purchases 64.000 80.000, Closing stock 12.800 67200 Gross profit 14300 Expenses 3.100 Net profit, 10200XC CAPE MOA L 2 SAMPLE MU SECTION © MODULE 3: BUSINESS FINANCE AND ACCOUNTING from this sect Answer ONE qui investment options. Table 1 below shows data on the three discount factor for Year | ~ Year 10, 5. ‘TABLE I: DATA ON THREE AVAILABLE OPTIONS ProjectA | ProjectB | Project $106 254 sii3724 | $108 590 sasom | 30000 | $2500 Duration (years) 3 5 8 ‘TABLE 2: DISCOUNT FACTOR FOR YEAR I ~ YEAR 10 Year | Discount Factor (12%) 0.8928 0.7971 o7n7 0.6355 05687 0.5066, 0.4523 0.4038 0.3606 03219 ‘The firm's cost of capital is 12%. 20, a. 23, 2+ SAMPI ‘another system (A) Synergy B) Subsystem (©) Open system (D) Closed system provides its workers with pension Which ofthe followit be the objective of an employee appraisal system? (A) To recognise the future needs ofthe individual (B) _Toconsiderthe development ofthe individual’ career (©) Toencourage and support planned 1ges within the organisation: ify employees in the jon who have potential “ @) © (D) Selective perception uM 26. 26, 27. Uolegation of duties chain of command level of hierarchy span of comirol Sandra and Sophia work in the same ©) ‘When managementattempisto increase the scope of jab by broadening or deepening the tesk undertaken by a work be BEST described as this ean is assigned to soa ‘make decisions,CXC CAPE MOB UI PAPER 2 + SAMPLE MULTIPLE CHOICL QUESTIONS 4 CXC CAPE MOB U1 PAPER 2 + SAMPLE MULTIPLE CHOICE QUESTIONS a8 Employees at J and © engin? 32, Which of the following phases GEST 4. (@ Define FACH of he following types of leadership styles ompiin about their manager io does defines a detente? re tem co express thee vies 7 3 sous final eeiion made (A) Abonk oan wth fed inert te Astor (marks) ihe company, Which ofthe flowing {B)Alongtemnioan wih ed inert ipany. e = i) Transformational [2 marks] ». 30 a MOST Ii the organization? y to be a cause of eon (@) Managemen (B) Clash of persor (©) Lackot communication (D) Competition for scarce resources n Abeahurn (Esteem Macy works ina small supermarket. St thinks the salary isattractive and enjoys the troup of eiends with whom she works, but Feels that her work i not appreciated and isnot challenging enough. She about leaving, ing wo Maslow, which of the following reasons BEST explains Mary"s esi to leave? (A) Social needs have not bee ni (8) Higher order needs have not been satisfied (©) Lower order needs have aot been satisied (0) Finoneial needs have not been sisied Which of the following i an example of debt financing fora company? (A) Stock issue (B) Debs factoring (C)Debenture issue (b) Retained eamings M. ©) © methordsusesproitsrather than cashfiows? (A) Net Preset Vale ‘The Payback Method {C)__Intemal Rate of Return (1D) Average Rate of Return Which of the following ratios gives @ measure of how easly a business could ‘An example ofan intangible asset is (A) cash (B) debtor (©) goodwill () a motor vehicle ‘The folowing are three levels of human needs in Abraham Maslow’ Hierarchy of Needs: ()— Sceurey Gi) Physiotogical Gili) Belongingness and Love Explain ONE way in which an organization can use compensation to satisfy employees’ needs at EACH level [9 marks} can benefit from on-the-job training for [12marks} Diseass THREE ways in which ai organi employees, ‘Total 25 marksCXC CAPE MOB UI R2 ~ SAMPIF MULTIPLE CHOICE QU IONS 8 fail al corporations (MNCs) in many Caribbean he growth of mu (a) Define the terms “globalization” and ‘multinational corporations’. [4 marks} (b) Outline THREE ways in which the goverment can encourage the growth of MNCs in your country. [9 marks} (©) Discuss THREE ways in which an inerease in the number of MNCs in the Caribbean may impact businesses in the region. [2 marks] ‘Total 25 marks SECTIONB MODULE 2: MANAGEMENT OF PEOPLE, “Answer ONE question from this section. February, four new workers were added to the production department in Flamingo Fashions nment of authority, resp ‘and teamwork in the is arisen among teams in the production department. (Authority [7 marks} Responsibility 12 marks} (b) Explain THREE reasons why conflict may have arisen in the production department at Flamingo Fashion Enterprise. [9 marks} (©) Discuss THREE ways in which Flamingo Fashion Enterprise can benefit from teamwork. (12 marks) Total 25 marks issuing of debentures 38, Thetollowinginformationisanextractfiom nd Sons Lid, at 31 December 4 S60 000 lites $200 000 $3300 000 = $.60000 Te firs capital as 31 Decernber 2013 ca) $200 000 5260 000 ©) $360 000 (D) $500 000 a ker.39 refers tothe following tble which shows an extract from the books of PBs Li. et cach iow fom eparaion FTexes paid Payment of fxed wets [Shares suet 39. The losing cash lance is a) $2000 $25 000 28.000 340 000 a loss (A) inervasing de increasing ere 5 9.00 Open soak 3300 [Closing sok 2400 Purchase 5 600 ‘The closing cosh balanoe is $2000 $25 000 28 000 $40 000CXC CAPE MOB Ul PAPER 2 + SAMPLE MULTIPLE CHOICE QUESTIONS 6 CXC CAPE MOB U1 PAPER 2+ SAMPLE MULTIPLE CHOICE QUESTIONS 7 CAPE MOB May/June 2044 Unit 1 Paper 2 ing sourcés'éFfirance 48. The following information was taken from 44, Which of the fol "g Business. is LEAST likely to be used as investment the books of Sam Per ‘a new product development? i 5 READ THE FOLLOWING INSTRUCTIONS CAREFULLY. (8) Bank loan Stock at Ist Janu 3000 (B) Debentures Wages 4500 Oe etaaned ie is paper consists of THREE sections: A, Band C (D) Bankoverdraf Postage 150 1 This pape JTHREE sections: A, feos gad 2. Each section consists of TWO questions. ‘What isthe cast of goods sold? 3. Candidates MUST answer ONE question ftom EACH s 89000 4. Begin EACH question on a separate page. @) $9300 (C) st0.600 5, Each question is worth 25 marks. () 10700 ; SECTION A MODULE 1: BUSINESS AND ITS ENVIRONMENT eee Answer ONE question from this section. 1. The government-owned public transportation (bus) system in Suns Joss for the past ten years. The government has announced that it land has been operating a a be privatizing the system. (@) Outline the difference between *privatization’ and “nationalization’. [marks] (b) Explain THREE negative impacts thet Sunset Island may experience as a resull of the ‘government privatizing the bus system. [9 marks} (©) Discuss THREE ways in which the country may benefit from the privatization ofthe bus system [2 marks) Total 25 marks