CSEC Principles of Business Paper 2 January 2019 - Free CXC Past Paper with Answers

Define the term 'capital' as a factor of production and state TWO examples.

List FOUR sources of capital that could be used when setting up a business.

June wants to set up a small supermarket, but is unsure whether she should operate as a sole trader or establish a partnership.

Define the term 'partnership'.

Outline TWO benefits of June establishing a partnership over a sole trader type business.

Suggest THREE ethical issues that June should consider in setting up and operating her business.

Explain to June the importance of conducting a feasibility study.

Business organizations perform many transactions daily, which require the use of documents.

List THREE types of business documents.

State THREE reasons why firms utilize documents in business transactions.

Distinguish between 'insurance' and 'assurance'.

Name TWO types of insurance policies.

Outline ONE principle upon which insurance is based.

Explain TWO ways in which insurance is beneficial to a firm.

State TWO advantages to the customer of utilizing EACH of the following terms of sales:

Describe ONE factor that could influence the behaviour of consumers.

Figure 1 shows a traditional chain of distribution for a certain product.

Identify EACH link in the chain by placing the correct name in EACH box above.

List FOUR problems that are likely to be encountered in the distribution of goods.

Suggest ONE appropriate mode of transportation for EACH of the following products.

Fresh meat from processing plant to supermarket

Cement from factory to construction site

Oil from oilfield to refinery

Bauxite from mine to processing plant

Outline TWO ways in which a budget could assist persons in the management of their personal income.

Describe THREE services offered by commercial banks.

List FOUR functions of a central bank.

Explain how the central bank uses EACH of the following measures to regulate the activities of commercial banks.

Open market operations

Liquid asset requirements

Define EACH of the following types of taxes:

State THREE reasons why governments charge taxes.

Identify THREE ways in which governments regulate the activities of businesses.

Outline TWO measures used by governments to protect consumers.

The government of your country has set up centres to train citizens in computer engineering and small appliance repair.

Explain TWO benefits that could be gained from this initiative.

CSEC Principles of Business Paper 2 January 2019 Questions