Principles of Business for CSEC®

2nd edition

Answers to Chapter 1: The nature of business

1. The correct answer is (D). In the case of a bank draft, the payment is drawn on the bank which
acts as the guarantor of the payment.
2. The correct answer is (A). The Guyanese government has played the most significant role in
the economy, for example with GuySuCo, and government ownership of radio and other key
sectors of the economy.
3. The correct answer is (B). Moral and ethical principles are concerned with doing the right
things in business. How a company expects to do this should appear in a code of conduct or
code of ethics.
4. The correct answer is (B). Dumping waste and polluting the environment are deemed to be
immoral and unethical acts. The other examples shown all involve increasing the level of
competition.
5. (a) Answers could include:
• A cheque
• A credit card
• A debit card
• A money order

Mark Scheme
Answers should include any three of the above, with an explanation of each one.

(b) Answers could include:

Cheque:
• It is safe – provided that it is a crossed cheque, only the named recipient is able to cash
the cheque at a bank or other financial institution.
• It is trusted as a method of payment that has been around for generations.
Credit card:
• A credit card is safer than carrying cash.
• Credit cards give you an emergency line of credit. Credit cards can be a financial safety
net if you do not have enough cash or savings to cover any unexpected costs that arise.
Debit card:
• Eliminates the need for cash – you do not have to carry around cash if you regularly use a
debit card.
• With debit cards, the money comes directly from your bank account, so you avoid
spending more money than you have.

1 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 1: The nature of business

Money order:
• Money orders are traceable, therefore if they are lost or stolen then they can be replaced –
unlike cash.
• Funds are guaranteed because the sum is already paid out of your bank account.
This means the recipient is guaranteed to receive the funds.

Mark Scheme
Answers should include any two of the above, with a description of each one.

(c) Answers could include:

Customers:
• Customers benefit from good-quality products sold by companies at what they consider
to be affordable prices.
• Consumers want a steady supply of the goods they like, such as Grace baked beans and
Grace aloe vera drink.
Employees:
• The stake employees have in a company is their job.
• Wages/salaries from employment provide a livelihood.
Business owners:
• Business owners get return on their investment.
• Business owners provide employment and income.

Mark Scheme
Answers should include any two of the above, with a description of each one.

(d) Answers could include:

• Advertising and PR
• Compliance officers
• Entrepreneurs
• Web designers
• Human resources personnel

Mark Scheme
Answers should include any two of the above, with a description of each one.

2 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019