l- FORM TP 2017028 qfo TEST CODE OI24OO2O -l

JANUARY 20I7

CARIBBEAN EXAMINATIONS COUNCIL

CARIBBEAN SECONDARY EDUCATION CERTIFICATEO
EXAMINATION

PRINCIPLES OF BUSINESS
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Paper 02 - General Proficiency
2 hours

READ THE FOLLOWING INSTRUCTIONS CAREFULLY.

I . This paper consists of FIVE questions. Answer all questions.

2. Write your answers in the spaces provided in this answer booklet.

3. Do NOT write in the margins.

4. You are advised to take some time to read through the paper and plan your answers.

5. If you need to rewrite any answer and there is not enough space to do so on the
original page, you must use the extra lined page(s) provided at the back of this
booklet. Remember to draw a line through your original answer.

6. If you use the extra page(s) you MUST write the question number clearly in
the box provided at the top of the extra page(s) and, where relevant, include
the question part beside the answer.

DO NOT TURN THIS PAGE UNTIL YOU ARE, TOLD TO DO SO.

Copyright O 2016 Caribbean Examinations Council

All rights reserved.

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o, rooo2olJANUARY/F 20 I 7
[_ 0124002003
r AnswerALL questions.
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1. (a) Define EACH of the following terms:

(i) Barter

(2 marks)

(ii) Specialization

(2 marks)

(b) State TWO characteristics of cooperatives.

(2 marks)

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01240020/ J ANUARY/F 20 I 7

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0124002004
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 r (c) Distinguish between EACH of the following pairs of concepts:
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(i) Sole traders and pannerships

(4 marks)

(ii) Private sector and public sector

(4 marks)

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1

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o124002005
r (d)
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Explain ONE way in which each of the following stakeholders is important to

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a retail business:

(D Producers

(3 marks)

(ii) Consumers

(3 marks)

Total20 marks

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0I 240020/JANUARYIF 20 I 7

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0124002006
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2. (a) (i) List FOUR characteristics of a good leader.

(4 marks)

(ii) Outline TWO types of leadership styles

(4 marks)

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01240020/ JAN UARY/F 2017
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0124002007
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r (b) (i)
-8-

Explain the importance of the'grapevine'in informalcommunication'

(2 marks)

(ii) Describe TWO strategies for effective communication within an organization.

(4 marks)

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012400201 JANUARY/F 20 1 7

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0124002008
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 r (c)
-9-

Explain TWO ways in which teamwork can contribute to the success of a business.
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(6 marks)

Total20 marks

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0124002009
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3. (a) Define EACH of the following terms
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(i) Production

(2 marks)

(ii) Productivity

(2 marks)

(b) (i) Describe TWO factors which contribute to the efficiency of labour.

(4 marks)

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0124002010
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(ii) List TWO factors of production used in the creation of goods and services.

(2 marks)

(c) Identifu TWO industries in the Caribbean that were developed from each of the following
activities:

(i) Agriculture

(2 marks)

(ii) Mining

(2 marks)

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0124002011
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(d) Explain TWO ways in which human resource development in the Caribbean can be promoted.

(6 marks)

Total20 marks

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0 1240020 I IANUARY/F 20 I 7

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o124002012
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4. (a) (i) Define the term 'marketing'
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(2 marks)

(ii) List TWO elements of the marketing mix.

(2 marks)

(b) Differentiate between 'perfect competition'and omonopolistic competition'

(4 marks)

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0124002013
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r (c) (i)
-14-

State TWO reasons for conducting market research

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(2 marks)

(ii) Describe TWO factors which influence consumer behaviour.

(4 marks)

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0 1 240020 / JAN U ARY/F 20 I 7

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0124002014
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 r (d)
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Explain TWO ways in which the price of a good or service contributes to the marketing
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process.

(6 marks)

Total20 marks

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5. (a) (i) State TWO responsibilities of govemments.

(2 marks)

(ii) List TWO sources of government income,

(2 marks)

(b) State FOUR ways in which businesses can protect the environment.

(4 marks)

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0t 240020 I JAN UA RY/F 20 t 7

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0124002016
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 r (c)
-17-

Describe TWO measures that governments can use to regulate business activity.
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(6 marks)

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(d) Explain TWO ways by which governments can protect consumers.

(6 marks)

Total20 marks

END OF TEST

IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST

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