CSEC POB MCQs

Which of the following is NOT a necessary element for a contract to be legally binding?

• Offer

•  Acceptance

• Consideration

• Fairness

•  Intention to create legal relations

Answer explanation

While fairness is desirable in a contract, it is not a legal requirement. The necessary elements for a contract to be legally binding are offer, acceptance, consideration, and intention to create legal relations.

If one party breaches a contract, the non-breaching party is entitled to:

• Retaliation

• Compensation

•  Forgiveness

• Termination without consequence

Answer explanation

If one party breaches a contract, the non-breaching party is typically entitled to compensation, also known as damages, to cover any losses incurred due to the breach.

Barter is defined as:

• The use of money for goods and services

• The exchange of goods and services without using money

• The saving of money

• The lending of money

Answer explanation

Barter involves trading goods and services directly without the use of money, relying on a direct exchange.

One major disadvantage of barter is:

• Double coincidence of wants

• Limited resources

• Inflation

• Taxation

Answer explanation

A major disadvantage of barter is the need for a double coincidence of wants, meaning both parties must have something the other wants and be willing to trade at the same time.

Which economic system relies heavily on supply and demand to allocate resources?:

• Traditional economy

• Command economy

• Market economy

• Mixed economy

Answer explanation

5. In a market economy, the allocation of resources is determined by supply and demand forces, with minimal government intervention.

In a command economy, economic decisions are made by:

• Consumers

• Businesses

• The government

• Market forces

Answer explanation

In a command economy, the government makes all major economic decisions, including what to produce, how to produce, and for whom to produce.

The marketing department is primarily responsible for:

• Producing goods

• Hiring employees

• Promoting and selling products

• Managing finances

Answer explanation

7. The marketing department is responsible for activities related to promoting, advertising, and selling products or services.

An organizational chart is useful for:

• Managing employee benefits

• Displaying the structure of an organization

• Designing new products

• Conducting market research

Answer explanation

An organizational chart visually represents the structure of an organization, showing relationships and hierarchies among departments and employees.

Which of the following is NOT typically shown on an organizational chart?:

• Hierarchy

• Job titles

• Reporting relationships

•  Individual salaries

Answer explanation

Organizational charts typically show the hierarchy and reporting relationships within a company but do not display individual salaries.

Effective communication in a business is important because it:

• Reduces costs

• Enhances clarity and efficiency

• Eliminates competition

• Guarantees profit

Answer explanation

Effective communication is crucial in business as it ensures clarity, reduces misunderstandings, and enhances overall efficiency.