Professional Documents
Culture Documents
(b) Explain the differences between the types of economic systems listed in (a)
above. (4mks)
(c) Suggest two ways by which the government of your country can control business
activity. (4mks)
Total 10 marks
Before reading the discussion and guidelines to answering the question, you may
wish to plan an answer that you would give to the question. Remember, there may
be other possible answers than the ones suggested.
(a) Any two types of economic systems can be listed, for example, the free
economic system and the planned economic system. This part of the question does
not require any expansion or explanation.
(b) The characteristics or features of the economic systems listed can be used to
show the differences between them.
Conjunctions such as whereas, on the other hand, while and however should be
used to indicate your reference to the opposite feature for the other economic
system. For example, in the free economy, most of the scarce resources are owned
and allocated by private individuals and firms while in the planned economy, scarce
resources are owned and allocated by the government.
The marks allotted for this part of the question would indicate that a minimum of
two differences is required.
(c) Governments control of business activity can come in many forms including:
* Legislation The passing of laws that businesses should abide by.
* Price controls Government stated maximum prices for selected goods and
services
2) Now lets move on to another question. CXC past paper May/June 2003
(General), Question 1.
(i) Partnership
(ii) Public Limited Company
(iii) Co-operative (4 marks)
(c) State TWO advantages which the Public Limited Company has over the
Partnership type of business. (4 marks)
Total 10 marks.
(b) The TWO types of businesses can be described by defining them and /or
outlining their features or characteristics. For e.g. in describing the partnership one
might say that a partnership is formed with two to 20 members who pool their
resources together to run a business with a view to making a profit.
Partnerships are normally required to sign a Deed of Partnership and register with
the Registrar of Companies.
(c) The advantages which the Public Limited Company has over the Partnership type
of business includes the fact that:
* A larger number of part owners, since the Public Limited Company has a minimum
of seven shareholders and no maximum.
* More capital can be raised than in a partnership since an appeal can be made to
the general public through the Stock Exchange.
* The Public Limited Company is a separate entity from the shareholder owners,
therefore, the individual shareholders cannot be sued, the company must be sued.
* The Public Limited Company has a Board of Directors elected by the shareholders.
Remember, you are asked to state only TWO advantages of the Public Limited
Company over the Partnership.
Tom Phillip who lived 20 miles away, drove to the address on the date specified with
the intention of purchasing the minibus.
On arrival, he was told by the auctioneer that the minibus was no longer available
and was removed from the items to be auctioned.
Tom Phillip became furious, threatened to sue for breach of contract and demanded
a refund of his traveling expenses
(a) Define the term contract. (2 marks) (b) (i) By attending the public auction
sale, did Tom Phillip accept a firm offer? (1 mark)
(ii) Give ONE reason for your answer in (b)(i) above (2marks)
(c) What do you understand by vehicle will be sold as is where is? (2 marks)
(ii) State ONE way in which a court may settle a breach of contract.
(1 mark)
(e) State TWO ways by which a contract can be terminated or discharged (4 marks)
(f) (i) Should John Brown refund Tom Phillips traveling expenses? (1mark)
(ii) Give ONE reason for your answer to (f)(i) above. (2 marks)
(g) (i) Advise Tom Phillip whether he will succeed in court against John Brown. (1
mark)
(ii) Give ONE reason for your advice in (g)(i) above. (2 marks)
Total 20 marks
* (a) You must be careful to define a contract, and not an agreement. A contract is
defined as a legally binding agreement or an agreement that is created with legal
intentions.
If you state that a contract is an agreement without stating any legal aspect, you
may only score half of the marks, since all contracts are agreements, but not all
agreements are contracts.
* (b) (i) The answer to this part of the question is simply NO.
(ii) The vehicle was not offered for sale, therefore, one cannot accept an offer that
was not made. An acceptance MUST be to a firm offer.
* (c) This means that the vehicle is to be sold in the condition that it is presently in
at the place or physical locality that it is at.
(d) (i) Breach of contract means that a party or parties to the contract fail to keep
their part or parts to the contract.
(ii) The court can rule that the party that has breached the contract be forced to
abide by their side of the contract. Or, with the injured parties agreement, the
existing contract can be terminated and a new one can come into existence that
satisfies all parties.
* By frustration, which means that something, which was possible at the time the
contract was made, now becomes impossible .
* By breach. However, in this case the contract can only be terminated with the
permission of the injured party.
* By law. This is when something that was legal at the time the contract was made
now becomes illegal by law. Therefore, the contract must come to an end.
* (f) (i) No, John Brown should not refund Tom Phillip?s traveling expenses.
Tom Phillip took it upon himself to make the journey to the auction and so the cost
of doing so must fall on his own shoulders
(g) (i) Tom Phillip will NOT succeed in court against John Brown.
(ii) There was no contract and there was no breach of contract. He would win the
case if an existing contract had been breached.
Tasty Fruit Ltd. is a manufacturer of several types of exotic tropical fruit juices.
Without consultation, Mr. Albert, the general manager, took a decision that with
immediate effect all breaks would be reduced from 15 minutes to five minutes. He
claimed that the change became necessary to enable the factory to process a larger
amount of fruit juices daily.
(a) What type of leadership style did Mr. Albert appear to be practising? (2 marks)
(b) (i) Name TWO other leadership styles. (2 marks)
(ii) Describe ONE of the leadership styles you named in (b)(i) above. (2 marks)
(c) Identify TWO situations that can result from the action taken by Mr. Albert. (4
marks)
(ii) Give an example to show how lack of one of the qualities you mentioned at (d)(i)
above can affect the operation of the factory. (2 marks)
Total 20 marks
(b) (i) Any TWO of the following can be named: laissez-faire/free reign leadership
style, democratic leadership style, charismatic leadership style.
(ii) Laissez-faire individuals are given the broad outlines, but left on their own to
carry out the major aspects of the decisions.
Democratic those who will be affected by the decision are consulted before the
decision is taken, though the leader still reserves the right to make the final
decision.
Charismatic the leader leads by virtue of his/her personality or charisma. Any ONE
of the leadership styles can be described.
(d) (i) The qualities of a good manager include: honesty, flexibility, ability to carry
out management functions and responsibilities, show genuine concern for
employees and customers, ability to motivate workers, be adaptable to various
situations, able to work on own initiative, ability to use Management Information
Systems, be aggressive, but not too aggressive, be reliable etc.
(ii) If for example the manager is unable to motivate his employees, they will
become lax and productivity will fall. The business will end up loosing profits.
The negative effects of the lack of any of the qualities you listed in (d)(i) can be
explained.
(a) Give FIVE examples of industrial activities which the employees could have
engaged in without striking. (5 marks)
(b) Identify TWO actions the management could have taken in retaliation against
the industrial activities by the workers. (2 marks)
(e) Apart from collective bargaining, outline THREE other functions of a trade
union. (6 marks)
Total 20 marks
(b) The action that management could have taken includes: lockouts, black-listing,
suspensions, termination of work contracts, deductions of salary etc.
(c) Collective bargaining refers to the trade union function in which the trade union
representing the workers and the employer or employers association discuss issues
relating to employees with a view to settlement which is suitable to both sides.
(e) Other functions of the trade union include: securing better wages and fringe
benefits for workers, securing better work environment, job security, ensuring that
workers get the leave they are entitled to, ensuring that workers are not exploited in
any way, education of members as to the role of trade unions, scholarships to
members and family etc. The THREE points chosen should be expanded on by brief
explanations and /or examples.
(e) Outline how an entrepreneur may overcome any ONE of the problems discussed
in (c) above. (2 marks)
(f) List FOUR ways in which governments may assist entrepreneurs. (4 marks)
Total 20 marks
(c) The characteristics of a successful entrepreneur are many and varied. They
include: ability to work hard, ability to take calculated risks, ability to make effective
decisions, ability to organise, ability to motivate and the ability to think quickly and
clearly in any situation. Again, any THREE characteristics may be listed.
(d) The problems of the entrepreneur include: problems in sourcing capital, lack of
managerial skills, lack of suitable collateral, inability to assess market potential,
inability to evaluate competition, lack of appropriate technology and the inability to
procure suitable machinery and equipment.You should expand on the TWO
problems you choose to discuss by explaining them and giving examples.
(e) You should begin this part of your answer by stating the problem selected and
then outline your suggestion for overcoming the problem. For example, if you select
the problem of the difficulty in sourcing capital, you could suggest that the
entrepreneur explore several sources of capital and that he even combine different
sources of capital, such as his own savings, along with a loan from a bank or credit
union.
(f) The ways in which governments can assist entrepreneurs include: providing them
with soft loans (loans with little or no interest), providing education and training on
enterprise management, giving tax incentives, providing entrepreneurial
consultants to monitor and assist entrepreneurs, providing factory shells for them to
operate their businesses in, and providing markets for their goods and services. Any
FOUR ways can be listed.
For many years, persons from Caribbean territories have migrated to Europe and
North America. Very often these persons only return for holidays or upon retirement.
(b) State THREE negative effects of migration on the labour force in your country.
(3 marks).
(c) Explain TWO positive effects migration may have on your country (4 marks).
(d) Identify ONE measure your country uses to encourage nationals to return.
(1 mark).
Total 10 marks
(a) Migration refers to the permanent movement of people from one area to another
within a country (internal movement), or from one country to another (external
movement) for at least one year. The correct time period of the movement must be
included in your explanation in order to obtain full marks.
(b) The negative effects of internal or external migration or both may be given.
Internally, the negative effects of migration include: shortage of labour in one area
and surplus of labour in another area, overpopulation in one area with resulting
social disorders, e.g., crime, etc. External migration results in negative effects such
as the brain drain, families abandoned and left to fend for themselves by migrants,
lower standard of living, etc. Any three negative effects will be accepted.
Rapid structural change is being experienced throughout the world, bringing with it
a growing importance of the contribution of small firms/businesses to economic
development in every country. Many industries and firms are now buying and selling
goods via the computer through a system called the Internet.
(b) Given the following sectors in the Caribbean, indicate which FOUR are most
likely to be dominated by small businesses:
(i) bauxite production
(ii) retailing
(iii) agriculture
(iv) petroleum refining
(v) finance and banking
(vi) personal services
(vii) fishing. (4 marks).
(c) Discuss FOUR ways through which small businesspersons can use the Internet to
assist them in their business goals. (8 marks).
(d) Suggest THREE reasons why the government of your country should encourage
the growth of small businesses as a way to promote economic development. (6
marks).
Total: 20 marks
DISCUSSION AND GUIDELINE ANSWER
(a) There are a number of acceptable definitions of the small firm. You may wish to
use any of the three definitions from Trinidad and Tobago, or any other definition
that you are comfortable with. The Trinidad and Tobago definitions are:
* A firm whose total assets excluding land and buildings does not exceed
TT$500,000.
* A firm that employs only one top manager who should manage the business and
perform other functional duties as well.
Generally speaking, a small firm is one with virtually no middle management, i.e.,
there is hardly any supervisors or subordinate managers.
(b) The FOUR sectors most likely to be dominated by small businesses are retailing,
agriculture, personal services and fishing.
(c) The Internet allows small business persons to: communicate with others in the
same field, get information and ideas that are current in their field, advertise their
products, source raw materials and goods at reasonable prices, source
markets/outlets for their goods and services, get access to Internet buying and
selling which boosts sales, etc. The points must be discussed fully to show how the
small business benefits from the Internet in order to gain the full eight marks.
* They provide healthy competition to larger firms and force them to sell at more
reasonable prices.
* They produce goods and services that people want and this will increase standard
of living.
* They contribute towards GNP/National Income.
* They provide linkages to other firms so they can be certain of their sources of raw
materials and/or their outlets.
* Small firms often grow into larger successful businesses, these firms are flexible
and can produce what is required for economic development. The THREE reasons
chosen must be developed properly in order to gain the full six marks.
(b) Identify three types of productive activities that are carried out in the Caribbean
and list the country in which each is carried out. (6 mks)
(c) (i) State five factors which determine the location of an industry. (5 mks)
Total: 20 mks
(b) A number of activities and countries can be used for this answer. Consider the
following:
Agriculture Jamaica
Fishing Barbados
Mining Guyana
Construction Trinidad
Manufacturing Trinidad
Transport St. Lucia
Tourism Jamaica
Communication Barbados
You should note that other activities and countries may be considered, however, you
should identify three different productive activities and the countries in which the
activities are observed.
(c) (i) The factors that influence the location of industry include: land, nearness to
markets, nearness to raw materials, nearness to a suitable labour supply, nearness
to power, climate, infrastructure and the government.
Note that the points discussed can be economic or social in nature and may also be
positive or negative. Each implication must be discussed, not listed, for full marks.
10) Now for the second and final question for this lesson.
(c) Identify four factors influencing the behaviour of consumers in their choice of
local hamburgers over foreign hamburgers. (8 mks)
(d) Discuss three methods a local business may use to promote local hamburgers.(6
mks)
Total: 20 mks
(c) Taste, tradition, quality, price, brand loyalty, income, knowledge of the owners,
convenience, the way the good is advertised, etc.
(d) Methods of promotion that can be used include: advertising, sales promotions,
publicity, public relations and competitive pricing. Each method should be
discussed, e.g., advertising may increase the demand for local hamburgers. The
business will sell more and make more profit.
Company XYZ Ltd. manufactures and markets a range of candles of different shapes
and lengths. Since its incorporation in 1989, sales volume has increased tenfold. In
order to meet demand, the company has had to expand its production capacity and
support systems considerably.
(a) List FOUR internal economies of scale the company might experience. (4 marks)
(b) Identify FOUR diseconomies of scale the company might experience. (4 marks)
(c) (i) Explain FOUR benefits the company might experience because of
mechanisation. (8 marks)
(ii) Discuss TWO negative effects the introduction of mechanisation might have on
the company. (4 marks)
Total: 20 marks
(a) You will remember that economies of scale refers to advantage to a firm or
company from going into large-scale production. The economies of scale include:
Financial economies.
Social economies.
(c) (i) Recall that mechanisation means partially replacing human or animal muscle
power by a machine, e.g., a tailor buying a sewing machine instead of sewing by
hand. The benefits of mechanisation include:
Costs are saved. These costs that are saved can be transferred to the market
in the form of lower prices to consumers.
It encourages more skilled workers to enter the workforce, i.e., workers who
can operate specific machinery etc.
Any FOUR benefits can be explained. For full marks, the benefits must be brought
out clearly.
(ii) The negative effects of the introduction of mechanisation on the company might
include:
Unemployment caused by the fact that less labour is required than when
work is done entirely by hand, therefore, the excess labour is normally laid off.
The Caribbean island of Green Mountain is having problems with its financial
institutions. Customers of some banks are adding to the problems as many have
withdrawn their deposits from the banks. The government has asked the central
bank to do all it can to prevent a collapse of the commercial banking sector.
(c) For EACH of the functions mentioned above, explain what benefit customers
obtain from using these functions. (4 marks)
(e) Select THREE of the features of central banks you mentioned above, and explain
how they help to promote smooth operation of the banking system in your
country. (6 marks)
Total marks: 20
(a) You must be careful not to confuse the characteristics of money with the
functions of money.
The characteristics of money are the features of money. Money should be:
Generally acceptable
Durable or long-lasting
Homogeneous
Portable
(b) The functions or services offered by commercial banks today are many and
varied. They include the following:
Accept deposits from customers for safekeeping and makes these deposits
available to customers when needed.
Allow customers use of the banks safety deposit boxes and night safe
facilities etc.
(c) Whichever TWO functions you choose to explain, you must ensure that you
properly explain the benefits of them to the customer. For example:
The function of accepting deposits from customers benefits the customers in that it
allows them to keep their money in a safe place instead of keeping it at home. In
addition, for most deposit accounts, the customer earns interest on his deposits and
this encourages him to save with commercial banks.
Issuing notes and coins and recalling them from circulation when necessary.
(e) Again, in explaining the THREE chosen features, you must be careful to show
how they promote smooth operations of the banking system. For example, in
monitoring the commercial banks and other financial institutions, the central bank
ensures that governments monetary policies are carried out and that they are not
promoting the opposite policy which would cause chaos in the financial system and
in the country. You must explain THREE features in like manner.
The question, reproduced below, surrounds the topic of international trade and
balance of payments:
The following information was taken from the final accounts of Tropicalo, a country
in the Caribee Isles. The figures are quoted in US ($M).
$US
Visible trade
Exports 24 000
Imports 26 000
Invisible (net)
Exports 20 000
Imports 15 000
(a) (i) Differentiate between a countrys terms of trade and its balance of trade. (3
mks)
(ii) Calculate Tropicalos balance of trade using the figures given above. (2 mks)
(b) Calculate Tropicalos current account balance using the figures given above. (3
mks)
You are not required to explain the calculations in (a) (ii) and (b).
(c) Identify two ways in which a country may have a surplus on its current account.
(4 mks)
(ii) Discuss three ways by which a country would be able to finance the deficit in its
balance of payments. (6 mks)
Total 20 marks
(a) (i) A countrys terms of trade refers to the rate at which its goods and services
exchange for the goods and services of another country. It is calculated as:
24,000
26,000
-2,000US ($M)
(b) The current account balance takes into consideration the visible trade balance
and the invisible trade balance. From (a) (ii) we found the visible trade balance
(balance of trade) to be minus 2,000 US ($M). The invisible trade balance is plus
5,000 US ($M). This is the difference between invisible exports and invisible imports.
The current account balance is plus 3,000 US ($M).
(d) (i) A countrys balance of payments is its annual record of trading with other
countries in terms of income from exports and expenditure for imports.
(ii) To finance a deficit is different from correcting the deficit. To finance the deficit,
the country must find ways to make the balance of payments balance by covering
the deficit. This includes:
Any short-term solution which results in the amount of money to cover the deficit, if
properly discussed, will earn two marks each.
(b) Identify THREE ways in which the government of your country can ensure that
consumers safety and well-being are protected. (6 mks)
(c) Discuss THREE ways in which the government may help businesses to succeed.
(6 mks)
(d) State TWO ways by which the government can ensure that businesses protect
the environment. (4 mks)
Total : 20 marks
Now, for my discussion and guideline answers. I hope they will help you in getting a
fair understanding of the question.
(a) There are many reasons why consumers need to be protected. These reasons
include the fact that they receive:
In addition, consumers are not always able to make a good assessment of the goods
they buy. They cannot protect themselves and therefore need to be protected.
Candidates should state clearly any TWO reasons for consumer protection.
(b) Some of the ways in which the government can ensure that consumers? safety
and well-being are protected are:
Through the introduction of penalties for producers and sellers who show lack
of regard for consumers.
Reducing corporation tax which reduces overall costs and boosts profits.
For this part of the question, the THREE points selected must be properly discussed
to score full marks.
(d) The protection of the environment has become increasingly important. The
government can ensure that businesses protect the environment by:
Taking over the production where businesses fail to protect the environment.
Having inspectors go around and ensure that practices are not damaging to
the environment.
Giving warnings which if not adhered to, result in the business being taken to
court or some other action.
2. The most important principle upon which barter trade depends is known as:
a) insurable interest
b) indemnity principle
c) utmost good faith
d) double coincidence of wants
3. Mary lives in a country in which the state makes all the decisions about economic
activities. That country has adopted the:
a) municipal authority
b) nationalised industries
c) public corporations
d) public limited companies
a) sole trader
b) manager
c) director
d) shareholder
9. What is the maximum number of share holders a private limited company can
have?
a) two
b) five
c) fifty
d) eighty
10. The relationship between the highest level of management down to the various
departments is known as:
a) flow
b) rank
c) staff
d) line
11. If X offers Y a book for $5, but Y says that he can only pay $4.50 for it, this is an
example of:
a) an offer
b) a counter offer
c) an invitation to treat
d) consideration
a) an offer
b) a counter offer
c) an invitation to treat
d) consideration
13. John buys goods to the value of $150, but is allowed 20% trade discount on the
invoice, plus 5% cash discount. He will therefore pay:
a) $112.50
b) $114.00
c) $126.00
d) $142.50
14. If you received less goods than was ordered and paid for, your supplier would
send you:
a) a credit note
b) an invoice
c) a debit note
d) a bill of exchange
a) acceptability
b) durability
c) limited supply
d) portability
17. The only bank which can claim to be a lender of last resort is the:
a) merchant bank
b) central bank
c) commercial bank
d) trustee savings bank
18. The document that has details of the source of goods, the raw materials from
which the goods are made, is called the:
a) shipping note
b) certificate of origin
c) bill of lading
d) bill of exchange
20. A man insured his property for $80,000, but its true value was $100,000. A fire
caused $10,000 worth of damage. The insurance will pay out:
a) $10,000
b) $8,000
c) $5,000
d) $6,500
(a) food
(b) land
(c) labour
(d) capital
2. Which one of the following will have the effect of reducing the supply of labour?
5. Which of the following does not have a direct effect on the efficiency of labour?
9. Each year, some high school graduates of the Caribbean rural communities move
to the towns and cities to live and work. The movement of such persons could be
described as:
10. People who migrated from the West Indies in the early 1950s went to all of the
following countries on a large scale except:
12. The 4-H Club and the Lions Club are examples of`
(a) multinational companies
(b) community self-help organisations
(c) monopolies
(d) voluntary chain stores
14. Which of the following is the best example of capital as a factor of production?
(a) machinery
(b) shares
(c) debentures
(d) money
(a) money and inventory used to finance the day to day running of a business.
(b) Capital that changes from one form to another and back to its original form
(c) The money paid to workers for maintaining day to day production.
(d) Any man-made item that assists in production.
(a) profit
(b) interest and dividends
(c) rent
(d) wages
20. A person responsible for bringing together and organising the factors of
production is the
(a) entrepreneur
(b) trade-unionist
(c) manager
(d) financier
End of Test
A) sole trader.
B) manager.
C) director.
D) shareholder.
A) careless partner.
B) active partner.
C) dormant partner.
D) general partner.
6. Those partners who, when their business goes bankrupt, stand to lose all their
personal possessions as well as their investments are known as:
7. The form of business where shares are allowed to be sold only to owners of the
business or to their relatives or employees is known as:
A) partnership.
B) private limited company.
C) public limited company.
D) multinational company.
9. Company A owns all these businesses: soft drink company, bakery, shipping
company and motor-car assembly company. Company A is an example of a:
A) conglomerate.
B) multinational.
C) private limited company.
D) partnership.
10. If one company, A, has or owns the majority shares in another company, B, then
company A can best be regarded as being a:
A) holding company.
B) partnership.
C) co-operative.
D) joint-stock company.
Now you can have a look at the answers to see how well you have done.
1. C 2. D
3. C 4. B
5. B 6. A
7. B 8. C
9. A 10. A
Advertisements
Loading...
Related
1 Comment
1.
kimmy said,
May 6, 2013 at 6:11 pm
Reply
Leave a Reply
Categories
Categories
Search
Recent Posts
o SBA HELP
o Marketing
Archives
Archives
BBC NEWS
IBM wants to open out quantum computing to the business community and increase usage
for programmers.
o Uber uses 'secret program' Greyball to hide from regulators March 4, 2017
The taxi-hailing service has been using a secret program to prevent regulators from shutting
it down.
The watchdog says it assessing the data protection risks arising from the use of data
analytics.
Microsoft says people will be able to choose a time to activate updates and reboots.
Downtime for some high-profile websites was caused by the error, the company says.
Europe's medium-range weather forecasts will cease to be constructed in the UK from 2020.
Judge rules London drivers will be required to prove their ability to communicate in English.
US police have turned to technology to help fight crime, but can the solutions really solve
the problem?
May 2011
M T W T F S S
Feb
1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31
Blog at WordPress.com.
Follow