Central Educational Institute

POB 2021 Jan

1. a.) List four essential characteristics of a good leader ? 4mks

Four essential characteristics of a good leader are :

1. The ability to communicate information effectively.
2. The ability to create feasible plans both long term and short term.
3. The ability to hire the correct amount of qualified staff for the job at hand.
4. The ability to motivate subordinates so that they can work effectively at
achieving the goals of the organization.

b.) Outline two techniques for effective communication in a classroom. 4mks

Firstly, for communication to be effective the teacher ( sender) should ensure that
the message (class lecture) is clear and can be easily understood by the class
(receiver) .This may require explaining points with visual aids , clarifying specific
jargon and offering examples.
Secondly, the teacher should seek feedback from the students, to ensure the
message was received and understood. The teacher can achieve this by asking the
students questions about the message /lecture.
(c) The coaches of the football and cricket teams of Sunnyside High School were
very concerned about the high levels of indiscipline and poor performance
displayed by members of their respective teams. In seeking to address the problem,
the coach of the football team drafted a new set of rules and informed team
members that anyone who failed to comply with the rules would be dismissed from
the team. The coach of the cricket team sought to address the problem by calling a
meeting with the players and their parents, inviting them to suggest solutions to the
problem.
c. i) Identify the type of leadership displayed by each coach . 2mks
The football coach – Autocratic Leadership
The cricket coach - Democratic Leadership

(ii) State ONE advantage and ONE disadvantage of EACH style of leadership
identified in (c) (i). 4mks

One advantage of the autocratic leadership style is that it can be most effective in
highly critical situations in which decisive, quick thinking leadership is required.eg
during a surgery .
One disadvantage of the autocratic style of management is that when used in the
wrong situation and with highly skilled, self -motivated workers , it can actually be
very demoralizing.
One advantage of the democratic style of management is that it takes into account
the views of subordinates. Since this style of management is more inclusive than
other styles it allows subordinates to feel as if their opinions matter and this can
lead to higher morale.

(iii) Outline THREE strategies that could be used by the coaches to motivate team
members. 6mks

The coach could use a negative reinforcement such as having fixed penalties for
fixed infractions. Eg a fine of $20 for coming more than 15 minutes late to
practice. This is likely to work since the players will want to act accordingly avoid
fines.
Secondly, the coach could use positive reinforcement such as rewarding the
players at the end of the season if they did not accrue fines or for their skill on the
field. The reward could be a plaque or trophy for outstanding performance or
person who takes the most wickets.
Thirdly, the coach could provide an incentive to players by offering them an
opportunity to be promoted . Eg the most outstanding players can become the
captain and vice captain of the teams.

2. (a) (i) List FOUR steps that should be taken in establishing a business. 4mks

Firstly, the entrepreneur will need to come –up with a business idea
(conceptulisation) and conduct research into its feasibility .
Secondly, the entrepreneur will need to identify the factors of production needed to
bring the business concept into fruition : Land, Labour and Capital.
Thirdly, he will need to create a business plan, stating how he plans to source the
factors of production, his marketing strategies, any problems he may encounter and
possible solutions.
Finally, the entrepreneur will need to present the business plan to investors or
lending agencies to get the necessary financial capital for the business so that he
can start the business operations.

( Words in red represent the listed answer )

(ii) Identify the TWO main sources of information necessary for conducting
research into the establishment of a business. 2mks

Primary data is done by the entrepreneur for a specific purpose eg questionnaires

and observation.
Secondary data is information collected from a third party unrelated to the project
at hand. Eg taking data from the Central Statistical Board.
(b) State FOUR reasons for preparing a business plan. 4mks
A business plan can be used by the entrepreneur to entice, partners, venture
capitalist and banks in order to secure financial capital for the business.
Secondly, a business plan helps to thoroughly investigate the market to determine
demand for the product before actually launching it.
Thirdly, to prepare the long term /strategic plans of the business.
To identify possible problems that the entrepreneur may encounter and identify
solutions.
(c) Outline TWO differences between ‘short-term planning’ and ‘long-term
planning’. 4mks

Short –term plans are operational in nature and apply to the day to day activities of
the business as they try to achieve short term goals for eg within the first quarter of
the year. Whereas, long-term –plans or operational plans apply to the overall
objectives of the business for the future for eg within the next 5 years.
Secondly, short-term plans are generally more specific in nature for eg to sell 50
cars in three months. In this eg a specific amount is given to achieve. Whereas,
long-term goals are generally more vague eg to open more branches of our
business.

(d) Explain ONE benefit of collateral to the borrower and ONE benefit to the
lender, in the establishment of a business. 6mks

Collateral is an asset of value given by a borrower to a lender as a form of security

in exchange for money borrowed. One benefit of collateral to the lender is that it
can be seized if the borrower fails to repay the loan. The lender can then sell the
collateral in order to retrieve the money he loaned the borrower.
One benefit of collateral to the borrower is that it strengthens his chances of getting
a loan especially if he does not have a credit history with the bank or he is opening
a new business. Since collateral is an asset of value banks can hold it as security in
lieu of the money.
3. (a) (i) Define the term ‘factors of production’ 2mks
The factors of production are the resources needed by an entrepreneur to produce
goods and services.

(ii) List the FOUR factors of production. 2mks

Four factors of production are:
Land
Labour
Capital
Entrepreneurship.

(iii) Define the term ‘extractive production’. 2mks

Extractive production is the removal or extraction of raw materials from the earth.
It is a categorized as Primary Production. Eg mining

(b) Identify TWO industries that could be developed from agricultural produce in
the Caribbean. 2mks
Two industries that depend on agricultural produce are the canning industry and
the beverage industry.

(c) Outline TWO benefits of developing backward linkage industries. 4mks

Backward linkages occur when a business that is in a higher level of production
creates business activities for businesses that are at a lower level of production. For
example an increase in tourist at local hotels (tertiary level) leading to an increase
in production of agricultural products (primary level).
One benefit is that it provides an increase in employment at all levels. When more
people are employed in a country the standard of living increases.
Secondly, the increase in production at all levels can lead to an increase in taxes
for the government. This revenue is used to develop and maintain the country.

(d) Explain how TWO factors could affect a country’s supply of labour. 6mks

Labour is defined as the physical and mental effort used in the production of goods
and services. One factor that can affect the supply of labour is external migration.
In 2005 the migration rate for Trinidad and Tobago among tertiary level graduates
was 56 % and 63% for Jamaica. At such rates the country is losing most of their
young skilled and professional workers, this is known as brain –drain. It creates a
void in the labour force and forces governments to spend additional funds to re-
train locals or hire foreign workers to fill these voids.
Secondly, statutory retirement age can affect the supply of labour. If the retirement
age is to low it can lead to a shortage of workers and a higher cost for labour eg
Greece (55yrs). In Greece it also lead to, too many people being dependent on the
pension system at the same time. The retirement age has since been increased (67).
If it is too high and the country has a growing middle –aged population then it can
lead to increased competition in the labour force and ultimately lower wage rates.
An ideal age for retirement in most countries is between 60 to 65.