TEST CODE OI24OO2O

FORM TP 2014028 %, JANUARY 2014

CARIBBEAN EXAMINATIONS COUNCIL

CARIBBEAN SECONDARY EDUCATION CERTIFICATE@
EXAMINATION

PRINCIPLES OF' BUSINESS

Paper 02 - General Proficiency

- 2 hours

06 JANUARY 2014 (a.m.)

READ THE F'OLLOWING INSTRUCTIONS CAREFULLY.

I . Answer the THREE questions in Section I, ONE in Section II and ONE

.in Section III as'indicated.

2. .{ll answers must be written in the booklet provided.

3. Begin EACH question on a separate page.

4. Keep ALL parts of EACH answer together.

5. EACH question is worth 20 marks.

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DO NOT TURN TIIIS PAGE UNTIL YOU ARE TOLD TO DO SO.
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I CopyriBht @ 2012 Caribbean Examinations Council

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All rights reserved.
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SECTION I
Answer the THREE questions in this section.

1. (a) (i) Define the term 'private sector'. (2 marks)

(ii) Outline TWO ways in which a public sector business is different from a private
sector business. (4 marks)

(b) (i) Describe TWO characteristics of a co-operative. (4 marks)

(ii) State ONE way in which a co-operative is different from a company.

(2 marks)

.{iii) List TWO types of private sector businesses, other than companies and
co-operatives. (2 marks)

(c) Discuss TWO ways in which a private company is LIKELY to change if it were to be
c.[ nationalized. (6 marks)

Total20 marks

2, (a) Distinguish between EACH of the following pair of terms:

(i)'Insurance'and'assurance' (4 marks)
:

-..--(iiL 'Life insur4uce'_4-qd'busi.-11ess ins_q1-qgg-e' _ _ _ -_(4 marks)

(b) 16
(i) .,, State TWO ways in which insurance facilitates trade. (2 marks)

(ii) Outline TWO reasons why documentation is important in business

transactions. (4 marks)

t(c) DiscussTWO reasons why entrepreneurs should purchase insurance fortheir businesses.
(6 marks)

Total'20 marks

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3. (a) List THREE services provided by EACH of the following:

(i) Central banks (3 marks)

(ii) Commercial banks (3 marks)

q) (i) Distinguish between an 'open cheque,and a ,crossed cheque'. (4 marks)

(ii) state oNE advantage of EACH of the following types of cheque:

a) Open

b) Crossed (2 marks)

(iii) IdentifyTWOfinancialinstitutions,otherthanbanks,whichoffersavingfacilities
to consumers. (2 marks)

(c) Discuss TWO reasons why it is better to save money in a financial institution rather

Total20 marks

SECTION II
A-n3-w'er ErrrrERQuestion 4 oRQuesllon 5.-Do NoT ani*-er botti.

4. (a) (i) State the type of production which takes place when

a) sugar cane is harvested (l mark)

b) lumber is produced. (1 mark)

(ii) List TWO by-products of sugar. (2 marks)

(b) (i) Differentiate between 'primary production'and 'secondary production'and give

. ONE examd-q PfEAeH- (6 marks)-t--

(ii) Describe TWO ways in which primary production contributes to the local
economy. (4 marks)

(c) Discuss TWO ways in which technology impacts the sugar industry in Caribbean
countries. (6 marks)

Total20 marks

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5. (a) (i) Distinguish between the terms 'copyright'and 'patent'. (4 marks)

(i i) List FOUR categories of persons whose works are protected by copyright

laws. (4 marks)

(b) (i) Define the term 'brand name'. (2 marks)

(ii) Explain what is meant by'brand loyalty'. (2 marks)

(ii i) Describe ONE way in which the use of brand names influences consumers.
(2 marks)

(c) Discuss TWO reasonsthat might explain why some consumers purchase pirated copies
of DVDs. (6 marks)

Total20 marks

SECTION III
Answer EITHER Question 6 OR Question 7. Do NOT answer both.

6. (a) (i) Define the term 'pollution'. : (2 marks)

Til id;ntify TWOttpo orpottution. (2 marks)

(b) Outlihe THREE ways in which citizens of the Caribbean can help to protect the
environment. (6 marks)

(c) Outline TWO major economic problems faced by Caribbean countries. (4 marks)
(d) Discuss ONE measure which governments can use to solve EACH of the economic
problems outlined in (c) above. (6 marks)

Total20 marks

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7' (a) Differentiate between 'direct taxes' and 'indirect taxes', and give ONE example
of
EACH. (4 marks)

(b) Describe THREE strategies which governments can use to encourage citizens
to pay
L.asr'
their taxes. (6 marks)
---)t
\., M (") State TWO ways in which tax payers 4re LIKELY to react to high level of taxation.

' (d) Discuss TWo purposes of taxation. (6 marks)

Total20 marks

END OF TEST

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