Q1

Why should a manager define a decision problem precisely before collecting information?

A: To guarantee that the chosen solution will succeed B: To remove the need to compare alternatives C: To ensure that all decisions are made centrally D: To ensure that the information gathered is relevant to the actual issue

Q2

Which action would make a food-processing business more environmentally sustainable?

A: Increasing the number of management meetings B: Offering customers longer credit periods C: Reusing process water and reducing packaging waste D: Replacing permanent workers with temporary workers

Q3

A local beverage producer begins exporting to three new territories after regional trade restrictions are removed. Which benefit is the producer MOST likely to gain?

A: Guaranteed profits B: A larger potential market C: Complete protection from competition D: Lower employee turnover

Q4

A hotel funds vocational training for unemployed young people and later offers successful participants permanent jobs. Which business practice is demonstrated?

A: Market segmentation B: Corporate social responsibility C: Horizontal integration D: Scientific management

Q5

Which factor represents an external constraint on a firm's decision to open a new production facility?

A: The experience of its managers B: The firm's internal operating procedures C: A newly introduced environmental regulation D: The availability of retained profits

Q6

Which of the following is LEAST likely to be stated as a long-term corporate objective?

A: Increase the firm's share of the regional market. B: Maintain profitability during economic downturns. C: Reduce the environmental impact of operations. D: Prepare next week's staff duty roster.

Q7

A Caribbean clothing manufacturer can now obtain finance from overseas investors, employ specialists from several countries and sell through international online platforms. Which development is MOST clearly illustrated?

A: Globalization B: Nationalization C: Privatization D: Specialization

Q8

A company provides cloud storage, cybersecurity monitoring and technical support to commercial clients. In which sector of economic activity does the company operate?

A: Primary B: Tertiary C: Secondary D: Extractive

Q9

Which feature is an advantage of converting a successful private company into a public limited company?

A: Its shares can only be owned by the founders. B: It is no longer required to publish financial information. C: It can raise substantial capital by offering shares to the public. D: Its owners automatically receive government funding.

Q10

A government acquires the country's only water supplier and directs it to extend service to remote communities even where profits are low. Which objective of nationalization is being pursued?

A: Greater social welfare B: Higher dividends for private investors C: Reduced public accountability D: Elimination of government expenditure

CAPE Management of Business