Principles Of Business

Principlesof BusinessCSEC PAST PAPERS

Macmillan Education4 Crinan Street, London, N1 9XWA division of Macmillan Publishers LimitedCompanies and representatives throughout the worldwww.macmillan-caribbean.comISBN 978-0-230-48287-6 AER Caribbean Examinations Council (CXC ) 2017www.cxc.orgwww.cxc-store.comThe author has asserted their right to be identified as the author of this work in accordance with theCopyright, Design and Patents Act 1988.First published 2014This revised edition published November 2017All rights reserved; no part of this publication may be reproduced, stored in a retrieval system,transmitted in any form, or by any means, electronic, mechanical, photocopying, recording, orotherwise, without the prior written permission of the publishers.Designed by Macmillan Publishers LimitedCover design by Macmillan Publishers Limited and Red GiraffeCover photograph Caribbean Examinations Council (CXC )Cover photograph by Mrs Alberta HenryWith thanks to the students of the Sir Arthur Lewis Community College, St Lucia: Javan Lewis

CSEC Principles of Business Past PapersLIST OF CONTENTSPaper 02 May/June 2005Paper 03/2 May/June 2005Paper 02 May/June 2006Paper 03/2 May/June 2006Paper 02 May/June 2007Paper 03/2 May/June 2007Paper 02 January 2008Paper 03/2 January 2008Paper 02 May/June 2008Paper 03/2 May/June 2008Multiple ChoiceMultiple Choice – MSPaper 02 January 2009Paper 03/2 January 2009Paper 02 May/June 2009Paper 03/2 May/June 2009Paper 02 January 2010Paper 03/2 January 2010Paper 02 May/June 2010Paper 03/2 May/June 2010Paper 02 January 2011Paper 03/2 January 2011Paper 02 May/June 2011Paper 03/2 May/June 2011Paper 02 January 2012Paper 03/2 January 2012Paper 02 May/June 2012Paper 03/2 May/June 2012Paper 02 January 2013Paper 03/2 January 2013Paper 02 May/June 1129133141146152157165171179

Paper 03/2 May/June 2013Paper 02 May/June 2014Paper 03/2 May/June 2014Paper 02 May/June 2015Paper 03/2 May/June 2015Paper 02 January 2016Paper 03/2 January 2016Paper 02 May/June 2016Paper 032 May/June 2016184191196203223232255263281Paper 02 January 2017Paper 03/2 January 2017291Paper 02 May/June 2017Paper 032 May/June 2017323343311

TEST CODEFORM TP 200513101240020MAY/JUNE 2005CARIBBEAN EXAMINATIONS COUNCILSECONDARY EDUCATION CERTIFICATEEXAMINATIONPRINCIPLES OF BUSINESSPaper 02 - General Proficiency2ihours( 31 MAY 2005 (a.m.))Answer ALL questions in Section I and THREE questions in Section II as indicated.DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SOCopyright 2004 Caribbean Examinations Council.All rights reserved.01 240020/F 2005

- 2-SECTION IAnswer ALL THREE questions in this section.1.(a)Identify TWO ways by which government can regulate the setting up of businesses.( 2marks)(b)What is the significance of the word, 'Limited', in the name of a company?(c)State the MAIN purpose of EACH of the following documents:(i)Memorandum of Association(ii)Articles of Association(iii)Partnership Agreement( 2 marks)( 6 marks)Total 10 marks2."The way capital and labour are combined determines the productivity of business".(a)Define 'productivity'.( 2marks)(b)What is meant by 'capi tal '?( 2 marks)(c)Discuss THREE strategies which can be used to increase the efficiency of labour.( 6 marks)Total 10 marks3.( 2marks)(a)Define the term, 'supply' , in economic terms.{b)Explain THREE factors, other than price, that may cause an increase in the supply of beef.( 6 marks)(c)Outline THREE factors. other than price, that may cause a decrease in the demand for icecream.( 6 marks)(d)Discuss THREE ways in which producers or consumers may influence the price of cheese.( 6marks)Total 20 marksGO ON TO THE NEXT PAGE0 1240020/F 2005

- 3 -SECTION IIAnswer THREE questions in this section as indicated.ORGANIZATIONAL PRINCIPLESAnswer EITHER Question 4 or Question 5. Do NOT answer both.4.In 10 years, the Fair Deal Supermarket (FDS) Ltd. has grown from one shop to 8 branches. Asa result of this expansion, management decided to introduce a Management Information System(MIS).(a)What is the role of a Management Information System (MIS)?(b)Explain EACH of the following functions of ating( 2marks)(6marks)(c)Identify TWO problems FDS Ltd. may face, as a result of the expansion.(4marks)(d)State TWO ways in which FDS Ltd. can utilize MIS in its personnel department.( 4 marks)(e)Outline TWO benefits which FDS Ltd. can obtain from utilizing a MIS.( 4 marks)Total 20 marks5.(a)State THREE functions of a business.(b)Identify THREE differences between a market economy and a planned economy.( 6marks)(c)Name a country which has:(d)(e)(i)A planned economy(ii)A mixed economy.( 3 marks)(2marks)List THREE methods of internal communication used in an organization.(3 marks)(i)Evaluate the effectiveness of ONE method listed in (d) above.(2 marks)(ii)Outline TWO reasons why an effective communication flow is important to anorganization.( 4 marks)Total 20 marksGO ON TO THE NEXT PAGE01240020/F 2005

- 4 -PRODUCTION AND MARKETINGAnswer EITHER Question 6 OR Question 7. Do NOT answer both.6."Today there is need to diversify the economies of Caribbean territories, but the migration of skilledpersonnel makes this very difficult".(a)Explain the meaning of the terms 'diversification' and 'migration' .( 4marks)(b)State THREE reasons why skilled workers migrate.( 6marks)(c)Suggest TWO actions that the government of your country can take to discourage the( 4 marks)migration of skilled personnel.(d)Discuss TWO ways in which the migration of skilled personnel affects diversification.( 6 marks)Total 20 marks7.A firm is importing a new brand of disposable diapers for sale locally. There are many different brandsavailable locally. You are asked for advice on marketing the product.( 2marks)(a)Outline the purpose of a market research.(b)Discuss FOUR factors that must be considered when marketing the new product.( 8marks)(c)What is meant by 'sales promotion'?(d)Justify TWO sales promotion techniques you are likely to use for this product.( 2marks)( 8marks)Total 20 marksGO ON TO THE NEXT PAGE01240020/F 2005

- 5 FINANCE AND INTRODUCTION TO ECONOMICSAnswer EITHER Question 8 OR Question 9. Do NOT answer both.8.The countries of the Caribbean have been experiencing a number of economic problems. The resultis a failure to achieve the desired economic growth and development.(a)(i)Differentiate between economic growth and economic development.( 3 marks)(ii)Identify THREE major economic problems facing Caribbean countries.( 3 marks)(b)Outline THREE factors that may cause your country to experience economic growth.( 6marks)(c)State TWO ways in which education can help in the economic development of your country.( 4marks)(d)Discuss TWO benefits of foreign investment to your country.( 4 marks)Total 20 marks9.The following information was taken from the final accounts of Tropicalo, a country in the CaribeeIsles. The figures are quoted in US ( M).United States dollarsVisible tradeExportsImports2400026 000Invisible (net)ExportsImports(a)2000015 000(i)Differentiate between a country' s terms of trade and its balance of trade.( 3 marks)(ii)Calculate Tropicalo' s balance of trade using the figures given above.( 2 marks)(b)Calculate Tropicalo's current account balance using the figures given above.(c)Identify TWO ways in which a country may have a surplus on its current account.( 4marks)(d)(i)(ii)Explain what is meant by 'balance of payment ' .( 3 marks)( 2 marks)Discuss THREE ways by which a country would be able to finance the deficit in itsbalance of payments.( 6marks)Total 20 marksEND OF TEST0 1240020/F 2005

TEST CODEFORM TP 200513201240032MAY /JUNE 2005CARIBBEAN EXAMINATIONS COUNCILSECONDARY EDUCATION CERTIFICATEEXAMINATIONPRINCIPLES OF BUSINESSPaper 03/2 - General ProficiencyI hourAnswer ALL the questions.In addition to the 1 hour, candidates are allowed15 minutes to read through this paper. WritingMAY begin during this time.DO NOT T URN T HIS PAGE UNTIL YOU ARE TOLD TO DO SOCopyrig ht 2004 Caribbean E xaminatio ns Counc il.All rights rest:rved.0 1240032 F/2005

- 2 -INSTRUCTIONS: This paper consists of a case study and FOURTEEN questions Candidates mustanswer ALL FOURTEEN questions. All answers must he written in the space provided on the questionpaper.Read the following case study and answer the questions which follow.CASE STUDYCASE:Ronnie's Trucking and HaulageThirty-seven year old Ronnie Redbress worked as a production supervisor for a large multi-national companyin the industrial town ofMalbook.Recently, the company reorganized and the post of production supervisor was made redundant. This wouldcreate tremendous hardship for his family of four.The company, however, provided tremendous support for Ronnie and fellow employees by paying for theirmarket research into the business of their choice. The firm was also willing to pay for their training and legalrequirements to start their own business, plus provide an interest free loan of up to 1,500,000 for twenty-fourmonths.Having conducted research into his target market, Ronnie Redbress decided to go into haulage and trucking. Theresearch indicated the price per load charged by other trucking firms and the specifications of different tractorsand trailers with respect to fuel consumption and servicing periods. Other operating costs to Ronnie wouldinclude road tax, vehicle and goods intransit insurance, his wage, plus the wages of three other employees.Ronnie found out that he would need additional training if he was to comply with legal restrictions on roadtransport.There were already three large established trucking businesses . However, many clients were dissatisfied withtheir performance as they were very unreliable. While there would be slow periods, there was great demand fora wide range of loading and unloading arrangements which influenced the type of vehicle he would buy to suitthe target market.Along with a sizable amount for his redundancy, Ronnie was able to secure the maximum amount as an interestfree loan from his former employers. He also received a two-year contract to truck goods for the company.Although he could have started out as a partnership with a few ofhis co-workers, Ronnie chose to go into a privatelimited company with his family. His wife had management and secretarial training skills and in two years bothhis sons would graduate with accounting and human resource development training.Ronnie was also encouraged to advertise in the local newspaper. However, he had his sights on the internet andworld wide web. He was also concerned that recently, the trucking business was coming under criticism andscrutiny from the government. Many haulage firms were aiding contractors in illegal quarrying and removal ofsand from river basins as well as illegal dumping of waste.Despite these concerns Ronnie Redbress was anxious to start business within three months of being redundant.GO ON TO THE NEXT PAGE01240032/F 2005

- 3 -ORGANIZATIONAL PRINCIPLES1.State TWO advantages of a pri vate limited company over a partnership.( 2 marks)2.Identify FOUR job position s that are vital to Ronnie's business. Gi ve a brief description of EACHposition identified.( 4 marks)3.State TWO advantages of a small business like Ronnie's over large firm s in the same industry.( 2 marks)4.Explain how ONE legal issue mentioned in thi s case would affect thi s new ilrrn .2 marks)GO O N TO THE NEXT PAGE0 1240032 F/2005

- 4 5.Identify TWO government regulations which Ronnie must satisfy in order to start his businessoperations.2 marks)Total 12 marksPRODUCTION AND MARKETING6.(a)(i)Define the term 'target market".( 1 mark)(ii)Give TWO examples of Ronnie's likely target market.2 marks)(b)Select TWO areas of Ronnie's market research, and state why the information gathered inEACH area would be useful to him.( 2 marks)7.Justify TWO types of promotional activities that can boost Ronnie's business.( 4 marks)GO ON TO THE NEXT PAGE01240032/F 2005