CAPE MOB Unit 1 Practice Questions - CAPE Management of Business Unit 1 Exam - CAPE MOB Unit 1 Practice Questions

Question 1

Which of the following business activities is classified under the primary sector of production?

Bauxite mining in Jamaica Sugar refining in Barbados Hotel services in St. Lucia Commercial banking in Trinidad and Tobago

Correct Answer:

Bauxite mining in Jamaica

Question 2

A sole trader faces 'unlimited liability'. What does this mean for the business owner?

The owner is only liable for the amount they invested in the business. The owner's personal assets can be seized to pay off business debts. The business can borrow an unlimited amount of money from commercial banks. The owner can easily transfer their liability to partners if the business fails.

Correct Answer:

The owner's personal assets can be seized to pay off business debts.

Question 3

Which of the following best contrasts stakeholder theory with shareholder theory?

Shareholder theory prioritizes the interests of all parties affected by the business, while stakeholder theory focuses strictly on maximizing profits for owners. Stakeholder theory asserts that a business has obligations to employees, customers, suppliers, and the community, whereas shareholder theory prioritizes maximizing wealth for the owners of the company. Stakeholder theory applies only to public sector organizations, whereas shareholder theory applies only to private sector corporations. Shareholder theory requires businesses to engage in corporate social responsibility, whereas stakeholder theory forbids it.

Correct Answer:

Stakeholder theory asserts that a business has obligations to employees, customers, suppliers, and the community, whereas shareholder theory prioritizes maximizing wealth for the owners of the company.

Question 4

If the exchange rate of the Guyanese Dollar (GYD) depreciates significantly against the US Dollar (USD), what is the most likely impact on a Guyanese manufacturer that imports raw materials from the United States?

The cost of raw materials will decrease, leading to higher profit margins. The cost of raw materials will increase, leading to a rise in production costs. Imports of raw materials will become cheaper, stimulating production. The manufacturer's domestic selling prices will automatically fall due to exchange rate changes.

Correct Answer:

The cost of raw materials will increase, leading to a rise in production costs.

Question 5

Which of the following clauses is typically contained in a Partnership Deed to resolve disputes and regulate operations?

The articles of incorporation and registrar stamp The profit and loss sharing ratio among partners A declaration of limited liability for all partners The prospectus details for public share issues

Correct Answer:

The profit and loss sharing ratio among partners

Question 1

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Prepare with the CAPE MOB Unit 1 Practice Questions - CAPE Management of Business Unit 1 Exam practice quiz. This question bank includes 100 questions covering business, project, primary, theory, and firm. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CAPE MOB Unit 1 Practice Questions - CAPE Management of Business Unit 1 Exam

This practice set contains 100 questions from the matching question bank and focuses on business, project, primary, theory, and firm. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CAPE MOB Unit 1 Practice Questions - CAPE Management of Business Unit 1 Exam

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