Form 4 Principles of Business Project

Due Date:
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Research and answer the following questions.
Either type or write the information and place it in a folder.
1. Please ensure that your name is on the project.
2. Each project must have a table of contents and bibliography.
3. Pages must be numbered.
NOTE WELL:
The best project will be posted on padlet.

1. Define the following financial institutions:

Financial institutions:
(a) Central bank.
(b) Commercial banks.
(c) Non-bank financial institutions:
(i) Credit unions;
(ii) insurance companies
(iii) building societies.
(d) Micro-lending agencies:
(e) Government agencies.

2. Describe the following functions and services offered by financial institutions:

Functions offered by financial institutions:
(a) loans/ credit facilities;
(b) savings and deposits;
(c) making payments; and,
(d) investments.
Services offered by financial institutions:
(a) night safe deposits;
(b) online banking;
(c) advisory services;
(d) credit and debit cards;
(e) trustee work;
(f) deposit boxes;
(g) ATM/ABM services;
(h) e-trade;
(i) settlement services; and,
(j) remittance services.

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3. Describe the role and functions of these financial
regulatory bodies:
(i) Central Bank.
(ii) Jamaica Deposit Insurance Company (JDIC).
(iii) Financial Services Commission (FSC).
4. Describe the relationship between the financial institutions and regulatory bodies
above.

5. Define the following terms:

Forms of Savings:
(a) Sou sou (meeting-turn, partner, box hand);
(b) deposits in financial institutions; and,
(c) short term fixed deposits.
Forms of investments
As deferred income and investment as risk bearing:
(a) stock market;
(b) government securities: bonds, debentures; and,
(c) mutual funds.

6. Explain the concepts of short-term and long-term financing:

Types of short-term financing:
Trade credit, commercial bank loans, Promissory notes, instalment credit, indigenous credit or
private money lenders, advances from customers, factoring, venture capitalists, crowd funding,
angel investors.
Types of long-term financing:
(a) loans from government agencies; and,
(b) mortgages, debentures, shares, insurance, investment and unit trusts.

7. (a) Define collateral.

(b) evaluate, that is, give advantages and disadvantages of these types of collateral and state
which is the best one in your opinion:
property, stocks, bonds, money, cash surrender on life insurance policies, motor vehicles,
appliances; and,
(c) explain the value of collateral.

8. Explain the following regulatory practices instituted by governments for the

establishment and conduct of different types of businesses:
(a) monetary and fiscal policies;
(b) consumer protection agencies; and,
(c) environmental policies.

9. Explain the principles below, that must be adopted in the establishment and operation
of a business:
1. The adoption of an organisation code of ethics.
2. Policies on environmental issues.
3. Handling of personal information.

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