TEST CODE 01240020

FORM TP 2017028 JANUARY 2017

CARIBBEAN E XAM I NAT I O N S COUNCIL

CARIBBEAN SECONDARY EDUCATION CERTIFICATE®

EXAMINATION

PRINCIPLES OF BUSINESS

Paper 02 – General Proficiency

2 hours

READ THE FOLLOWING INSTRUCTIONS CAREFULLY.

1. 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 © 2016 Caribbean Examinations Council

All rights reserved.
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Answer ALL questions.

1. (a) Define EACH of the following terms:

(i) Barter

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(ii)
Specialization

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(b) State TWO characteristics of cooperatives.

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(c) Distinguish between EACH of the following pairs of concepts:

(i) Sole traders and partnerships

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(ii) Private sector and public sector

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(d) Explain ONE way in which each of the following stakeholders is important to a retail business:

(i) Producers

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(3 marks)

(ii) Consumers

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(3 marks)

Total 20 marks

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

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(ii) Outline TWO types of leadership styles.

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(b) (i) Explain the importance of the ‘grapevine’ in informal communication.

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

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

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Total 20 marks
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3. (a) Define EACH of the following terms:

(i) Production

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(ii) Productivity

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

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

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

(i) Agriculture

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(ii) Mining

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

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(6 marks)

Total 20 marks

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4. (a) (i) Define the term ‘marketing’.

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(ii) List TWO elements of the marketing mix.

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(b) Differentiate between ‘perfect competition’ and ‘monopolistic competition’.

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(4 marks)

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(c) (i) State TWO reasons for conducting market research.

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(ii) Describe TWO factors which influence consumer behaviour.

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

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Total 20 marks
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5. (a) (i) State TWO responsibilities of governments.

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(ii) List TWO sources of government income.

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(2 marks)

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

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(4 marks)

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

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

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(6 marks)

Total 20 marks

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END OF TEST

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

01240020/JANUARY/F 2017
‘‘*’’Barcode Area”*”
Sequential Bar Code