This document appears to be an exam for Principles of Business from the Caribbean Examinations Council. It contains three sections with multiple choice and essay questions about business concepts. Section I asks students to define characteristics of partnerships and private companies, compare free market and planned economies, and discuss benefits businesses provide to stakeholders. Section II focuses on sources of personal income, budgeting, savings, and factors of production. Section III covers social services provided by government, functions of government in supporting business, human resource development, and economic challenges facing Caribbean countries.

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FORM TP 2011028 TANUARy 2011
CARIBBEAN EXAMINATIONS C OUNCIL
SECONDARY EDUCATION CERTIFICATE
EXAMINATION
PRINCIPLES OF BUSINESS
Paper 02 - General Proficiency
2 hours
E
05 JANUARY2011 (a.m.)
Answer the THREE questions in Section I, ONE question in Section II, and
ONE question in Section III as indicated.
DO NOT TURN THIS PAGE UNTILYOU ARE TOLD TO DO SO
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Copyright @ 2009 Caribbean Examinations Council.
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All rights reserved.
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2. ;
, i1.i
State FOUR characteristics of a:
(Ð Partnership
(iÐ Private limited company
Discuss TWO advantases a business
a-L-
SECTION I
Answer the THREE questions in this section.
1. (a)
( 4marks)
( 4marks)
would enjoy by converting from a partnership to(b)
(c)
(a))
(b)
(c)
(a)3.
(b)
(c)
a private limited company. ( 6marks)
Outline THREE ways in which a free market economy differs from a planned or
command economy. ( 6marks)
Total20 marks
Compare the private sector with the public sector in terrns of the following:
(Ð Ownership and control
(iÐ Objective
(iiÐ Source of capital ( 6marks)
Outline TWO benefits a business can provide to EACH of the following:
(Ð A sole proprietor
(iÐ The community ( Smarks)
Discuss TWO ways in which government can promote business activity.
( 6 marks)
Total20 marks
State THREE benefits a business may receive from advertising its goods or services.
( 6 marks)
Distinguishbetween advertising and sales promotion, giving TWO examples of EACH.
( I marks)
A supermarket awards ten scholarships to students each year for outstanding academic
achievement. Discuss TWO benefits, to the supermarket, of this public relations
activity. ( 6marks)
Total2O marks
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3. 4. (a)
(b)
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SECTION II
Answer EITHER Question 4 OR Question 5. Do NOT answer both.
Identify FOUR sources of personal income.
(Ð Explain what is meant by the term 'budgeting'.
(iÐ State TWO advantages of budgeting.
( 4 marks)
( 2 marks)
( 4 marks)
(c)
(d)
(a)J.
State TWO factors that must be considered when choosing a form of savings.
( 4 marks)
Discuss TWO reasons for saving money in a bank as opposed to keeping it at home.
( 6 marks)
Total20 marks
In order to produce goods and services, the five M's of production - Men, Money,
Materials, Machinery and Method - must be present.
Identify the traditional factors of production that EACH of the five M's, in the above
statement,represents. ( Smarks)
Distinguish between the following pairs of terms:
(Ð Primary production and tertiary production
(iÐ Subsistence level production and domestic level production
(iiÐ Backward linkage and forward linkage ( 9 marks)
Discuss TWO factors that must be considered when selecting a location for a large
shoppingmall. ( 6marks)
Total20 marks
(b)
(c)
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4. 6. (a)
(b)
-4-
SECTION III
Answer EITHER Question 6 OR Question 7. Do NOT answer both.
Identify ONE social service provided by the government of your country and evaluate
its impact on the country. ( 4 marks)
Describe the following functions of government:
(i) National security
(iÐ Maintenance of safe environment for investors
(iiÐ Job security ( 6 marks)
(c)
(d)
Outline TWO forms of assistance offered
Discuss TWO actions the sovernment
environment.
by Caribbean governments to businesses.
( 4 marks)
of your country can take to protect the
( 6 marks)
(Ð
(iÐ
Define the term 'human resources'.
Tot¿'l20 marks
( 2 marks)
Outline THREE factors that affect human resource development in any named
(a)7.
(b)
CARICOM country. ( 6 marks)
State T'WO ways in which human resources can be developed in the country identified
in (a) (ii) above. ( 4 marks)
(c) Identify TWO major economic problems facing Caribbean countries and discuss
ONE measure that can be used to address EACH problem. ( I marks)
Total20 marks
END OF TEST
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