TEST CODE 01240020 FORM TP 2014028 ce. JANUARY 2014 ‘@ CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE* EXAMINATION PRINCIPLES OF BUSINESS Paper 02 — General Proficiency 2 hours 06 JANUARY 2014 (a.m.) READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1, Answerthe THREE questions in Section 1, ONE in Section Il and ONE. in Section III as indicated. 2. All answers must be written in the booklet provided. 3. Begin EACH question on a separate page. 4, Keep ALL parts of EACH answer together. 5. EACH question is worth 20 marks. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO. ‘Copyright © 2012 Caribbean Examinations Council All rights reserved. 01240020/JANUARY/F 2014. @ ) © 2 (@) () © @ Gi) oO «i Gil) SECTION I Answer the THREE questions in this section. Define the term ‘private sector’. (2 marks) Outline TWO ways in which a public sector business is different ftom a private sector business. 4 marks) Describe TWO characteristics of a co-operative. (@ marks) State ONE way in which a co-operative is different from a company. (2 marks) List TWO types of private sector businesses, other than companies and co-operatives. (@ marks) Discuss TWO ways in which a private company is LIKELY to change if it were to be nationalized. (6 marks) Total 20 marks Distinguish between EACH of the following pair of terms: @ “Insurance” and ‘assurance’ (4 marks) ‘Life insurance’ and ‘business insurance’ (4 marks) State TWO ways in which insurance facilitates trade. (2 marks) Outline TWO reasons why documentation is important in business transactions. (4 marks) Discuss TWO reasons why entrepreneurs should purchase insurance for theirbusinesses. (6 marks) Total 20 marks GO ON TO THE NEXT PAGE 01240020 ANUARY/F 2014-3- 3. (@)_List THREE services provided by EACH of the following: Central banks @ marks) Gi) Commercial banks G marks) © Distinguish between an ‘open cheque’ and a ‘crossed cheque’. (4 marks) State ONE advantage of EACH of the following types of cheque: a) Open b) Crossed @ marks) [Identify TWO financial institutions, other than banks, which offer saving facilities to consumers. @ marks) (© _ Discuss TWO reasons why it is better to save money in a financial institution rather than at home. (6 marks) Total 20 marks SECTION IL Answer EITHER Question 4 OR Question 5. Do NOT answer both. 4) @)_State the type of production which takes place when 1) sugar cane is harvested (1 mark) : b) lumber is produced. (mark) Gii)__List TWO by-products of sugar. (@ marks) (&) —@)_iifferentiate between ‘primary production’ and ‘secondary production’ and give ‘ONE example of EACH. (6 marks) Describe TWO ways in which primary production contributes to the local economy. (@ marks) (©) Discuss TWO ways in which technology impacts the sugar industry in Caribbean countries. (6 marks) Total 20 marks GO ON TO THE NEXT PAGE 01240020 ANUARY/F 20145 @) ©) © ©) ©) @ () Distinguish between the terms ‘copyright’ and ‘patent’. (4 marks) (ii)__List FOUR categories of persons whose works are protected by copyright laws. (4 marks) @ Define the term ‘brand name’. (@ marks) Gi) Explain what is meant by ‘brand loyalty’. (2 marks) (iii) Describe ONE way in which the use of brand names influences consumers. (2 marks) Discuss TWO reasons that might explain why some consumers purchase pirated copies of DVDs. (6 marks) Total 20 marks SECTION II Answer EITHER Question 6 OR Question 7. Do NOT answer both. (Define the term ‘pollution’. (marks) Gi) Identify TWO types of pollution. @ marks) Outline THREE ways in which citizens of the Caribbean can help to protect the environment. (Gmarks) Outline TWO major economic problems faced by Caribbean countries. (4 marks) Discuss ONE measure which governments can use to solve EACH of the economic problems outlined in (c) above. (6 marks) Total 20 marks GO ON TO THE NEXT PAGE 01240020/JANUARY/F 2014@ OO) © @ JF YOU FINISH BEFORE TIME IS CALLED, Differentiate between “direct taxes’ and ‘indirect taxes’, and give ONE example of EACH. (4marks) Describe THREE strategies which governments can use to encourage citizens to pay their taxes. (6 marks) State TWO ways in which tax Payers AF LIKELY to react to high level of taxato® (4marks) Discuss TWO purposes of taxation. (marks) Total 20 marks END OF TEST CHECK YOUR WORK ON THIS TEST. 01240020/ANUARY/F 2014