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JANUARY 20I6

CARIBBEAN EXAMINATIONS COUNCIL

CARIBBEAN SECONDARY EDUCATION CERTIFICATEO
EXAMINATION

PRINCIPLES OF BUSINESS

Paper 02 - General Proficiency

2 hours

READ THE FOLLOWING INSTRUCTIONS CAR-EFULLY.

l. Answer the THREE questions in Section I, ONE in Section II and ONE in

Section III as indicated.

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. You may use a silent, non-programmable calculator to answer questions.

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6. If you need to rewrite any answer and there is not enough space to do so on the
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r SECTION
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Answer the THREE questions in this section.

l. (a) Define EACH of the followins terms:

(i) Traditionaleconomicsystem

(2 marks)

(ii) Planned economic system

(2 marks)

(b) (i) State TWO advantages of a mixed economic system.

(2 marks)

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(ii) State TWO disadvantages of a mixed economic system.

(2 marks)

(c) Outline THREE ways in which a business could fulfill its role to government.

(6 marks)

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(d) Explain ONE way in which EACH of the following stakeholders contributes to the success of
a business:

(i) Business owners

(3 marks)

(ii) Employees

(3 marks)

Total20 marks

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2. (a) (i) Define the term 'teamwork'.
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(2 marks)

( ii) State TWO advantages and TWO disadvantages of teamwork within an organization.

Advantages

Disadvantages ...........

(4 marks)

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(b) Outline TWO examples that show how teamwork is used at a school or in a workplace. ':._iiai:
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(4 marks)

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(d) Using an example, outline ONE strategy for effective communication between EACH of the
following groups:

(i) Teachers and students

(3 marks)

(ii) Teachers and parents

(3 marks)

Total20 marks

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3. (a) (i) Define the term 'entrepreneur'.

(2 marks)

(ii) State TWO advantages and TWO disadvantages of being an entrepreneur.

Advantages

Disadvantaqes ............

(4 marks)

(b) (i) Identifo FOUR characteristics of an entrepreneur.

(4 marks)

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Identifo TWO problems faced by entrepreneurs.

(2 marks)

(iii) Outline ONE way in which any ONE problem identified in (ii) above may be resolved.

(2 marks)

(c) Explain TWO ways in which entrepreneurship benefits an economy.

(6 marks)

Total20 marks

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Answer EITHER Question 4 OR Question 5. Do NOT answer both.

(a) (i) Define the term 'marketing'.

(2 marks)

(ii) List the FOUR elements of the 'marketing mix'.

(4 marks)

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State TWO reasons why firms engage in publlic relations (pR).

(2 marks)

(ii) Describe THREE marketing methods, other than social media, employed by
businesses to promote sales.

(6 marks)

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Explain TWO ways in which businesses can use social media to promote sales.

(6 marks)

Total20 marks

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5. (a)
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List THREE services offered by EACH of the following institutions:

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(i) Commercial banks

(3 marks)

(ii) Central banks

(3 marks)

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(b) Differentiate between a 'current account'and an 'ordinary savings account'.

(4 marks)

(c) Outline TWO ways in which technology has influenced banking and commerce.

(4 marks)

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(d) Explain TWO ways in which a central bank regulates the activities of commercial banks.

(6 marks)

Total20 marks

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 r SECTION
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III
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Answer EITHER Question 6 OR Question 7. Do NOT answer both.

6. (a) (i) State TWO differences between 'direct taxes' and 'indirect taxes'

(4 marks)

( ii) List ONE example of a direct tax and ONE example of an indirect tax.

Direct

Indirect

(2 marks)

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(b) (i) Outline THREE reasons why governments charge taxes.

(6 marks)

(ii) Identifiz TWO sources of government revenue, other than taxes.

(2 marks)

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earner under EACH
(c) Explain why the higher income earner pays more than the lower income
of the following forms of taxation:

(i) ProPortional

(3 marks)

(ii) Progressive

(3 marks)

Total20 marks

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7. (a) (i) Define the term 'international trade'.

(2 marks)

(ii) Outline THREE reasons why countries trade with each other.

(6 marks)

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(b) (i) Differentiate between 'balance of trade'and 'balance of payments''

(4 marks)

(ii) List TWO components of a balance of payments account.

(2 marks)

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Explain TWO ways in which governments can address a balance of payments deficit.
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(6 marks)

Total20 marks

END OF TEST

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

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EXTRA SPACE

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Question No.

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EXTRA SPACE

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Question No.

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