TT cA test cove 01240020 | FORM TP 2015028 ‘o JANUARY 2015 CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE® EXAMINATION PRINCIPLES OF BUSINESS Paper 02 - General Proficiency 2 hours READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1, Answer the THREE questions in Section 1, ONE in Section II and ONE in Section III as indicated. 2. Write your answers in the spaces provided in this answer booklet. 3. DONOT write in the margins. 4. Ifyou 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. 5. Ifyou 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 © 2013 Caribbean Examinations Council All rights reserved. L 01240020/JANUARY/F 2015, ACO _] 0124002003T 2 7 Answer the THREE questions in this section. (@) Define EACH of the following terms: (i) Bill of exchange (ii) Electronic transfer Git) E-commerce (b) Distinguish between EACH of the following pairs of concepts: (Traditional economy and planned economy (marks) GO ON TO THE NEXT PAGE 01240020/ANUARY/F 2015 L CO NEC _| 0124002004r » 7 ii) Public sector and private sector (4 marks) (©) Explain TWO ways in which businesses can contribute to the development of the communities in which they are located. (6 marks) Total 20 marks GO ON TO THE NEXT PAGE 01240032/JANUARY/F 2015 L {AOE BA | 0124002005r “ 1 2. (@)__—_@)_ Identify TWO means of communication in an organization. (@ marks) ii) Identify TWO barriers to effective communication. arks) Outline TWO strategies for effective communication. (&) Explain the purpose of a management information system (MIS). GO ON TO THE NEXT PAGE 01240020/JANUARY/F 2015 ie. {NEL _| 0124002006r “ 7 © State TWO benefits and TWO challenges associated with the use of an MIS, (i) Benefits Gi) Challenges (4 marks) (® Describe TWO needs that are satisfied through employment. (marks) Total 20 marks GO ON TO THE NEXT PAGE 01240032/JANUARY/F 2015, L {AOAC _| 0124002007i 6 7 3. (@)~—()_ Define the term ‘entrepreneur’. Gi) List TWO characteristics of an entrepreneur. (@ marks) Gii) Outline TWO features of a business plan. (4 marks) (>) (i)_Identify THREE steps that should be taken when establishing a business. (marks) GO ON TO THE NEXT PAGE 01240020/JANUARY/F 2015 L {ACCA EA A | 0124002008r * 7 ii) State THREE reasons why persons may want to establish their own business. (©) _ Describe the likely effects of TWO unethical business practices on the society. (6 marks) Total 20 marks GO ON TO THE NEXT PAGE 01240032/JANUARY/F 2015 L OOO _] ‘0124002008r 7 SECTION IT Answer EITHER Question 4 OR Question 5. Do NOT answer both. 4 @ —(_ List FOUR marketing activities. (4 marks) Gi) State TWO elements of the marketing mix. @ marks) (©) _ Differentiate between ‘sales promotion’ and ‘public relations’. GO ON TO THE NEXT PAGE 01240020/JANUARY/F 2015 L {ET | ‘0124002010©) List TWO examples of (advertising Gi) personal selling, (4 marks) (@) Outline THREE problems which a consumer might experience when purchasing goods via the Internet, (6 marks) Total 20 marks GO ON TO THE NEXT PAGE 01240032/JANUARY/F 2015 L OCA | ‘0124002011T -10- 7 5) (D_List FOUR services offered by commercial banks. (ii) State TWO functions of a central bank. (@ marks) () Differentiate between ‘savings’ and ‘investment’. GO ON TO THE NEXT PAGE 01240020/JANUARY/F 2015 L {AOTC J 0124002012: “Me 7 ©) List TWO sources of (short-term financing long-term financing. (4marks) @ Outline THREE reasons why personal budgeting is important. (6 marks) Total 20 marks GO ON TO THE NEXT PAGE 01240032/JANUARY/F 2015 L ALC NECA | 0124002013ez -12- | SECTION Itt Answer EITHER Question 6 OR Question 7, Do NOT answer both. 6 — @ (i) _ State TWO ways in which businesses can protect the natural environment ofa country. (@ marks) Gi) Describe THREE measures used by governments to protect consumers from unfair business practices. GO ON TO THE NEXT PAGE 01240020/JANUARY/F 2015 L AIO | 124002014® © -13- | Outline THREE forms of assistance offered by governments to help businesses to develop. (6 marks) Explain TWO ways in which governments could improve the health care sector in a country. (6 marks) Total 20 marks GO ON TO THE NEXT PAGE 01240032/JANUARY/F 2015 L 0124002015 TENA EA |T 14 7] 7 @_——@_Adentify TWO factors that can be used to determine a country’s standard of living. @ marks) (il) Describe THREE measures that a government can take to improve the standard of living of its citizens, () —@)_Define the term ‘gross domestic product’ (GDP). GO ON TO THE NEXT PAGE 01240020/JANUARY/F 2015 L AAS | 0124002016T 15+ ~] Gi) Outline TWO approaches used to measure national income. (marks) (©) Explain TWO ways in which a country can address its balance of payments problems. marks) Total 20 marks END OF TEsT IF YOU FINISH BEFORE TIME IS CALLED, CHECK. YOUR WoRK ON THIS TEsT, L AME 1249p ce