CSEC Principles of Business Paper 2 May/June 2025 - Free CXC Past Paper with Answers

List THREE documents utilized in the operations of a business.

State THREE reasons why it is necessary to keep proper records of business transactions.

Describe EACH of the following types of insurance policies.

Public liability

Employers' liability

Define EACH of the following principles of insurance and state ONE example of EACH principle.

Insurable interest

Indemnity

Mr Cole has a phone that he would like to sell to his 13-year-old neighbour, Raul. He approaches Raul who is very excited about the phone and although the phone is expensive, it is the latest in the series. Raul tells Mr Cole that he could only deposit half of the agreed price and that he would pay the balance at the end of the month, at which time Mr Cole would deliver the phone to him.

Raul's mother hears of the transaction and tells Raul that he recently received a phone and so should not have agreed to purchase another one. She goes to Mr Cole and asks that he immediately return Raul's deposit. Mr Cole bluntly refuses, and insists that he had a contract with Raul and that he would sue for breach of contract if Raul did not go through with the agreement.

Identify the principle of contract relevant to the case above.

Explain whether Mr Cole is likely to succeed if he sues Raul.

Suggest TWO actions the parties could take to peacefully settle the dispute without going to the courts.

Businesses engage in public relations activities to boost their image.

State THREE forms of public relations activities in which businesses engage.

Describe EACH of the following methods of promoting sales.

Loyalty points

Bundling

Describe EACH of the following marketing activities.

Pricing

Distribution

Firms utilize different strategies to determine the price at which products will be sold.

Complete the table below by identifying EACH pricing strategy described in Column 1.

Examine the advertisement shown in Figure 2.

Figure 2. Advertisement

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Name the type of advertising shown in Figure 2.

State the MAIN objective of the type of advertising displayed in Figure 1.

Identify ONE group being targeted by the advertisement.

Suggest ONE effective communications medium that Mr Genus could use to present the advertisement to his target market.

Outline ONE reason for the communications medium suggested in (e) (iv).

Outline TWO roles of transportation in the marketing of goods.

Identify the MOST suitable mode of transportation for the movement of EACH of the following products.

(i) Vaccines from Canada to Grenada (ii) Lumber from the parish of Saint Joseph to the parish of Saint George in Dominica (iii) Statistics on CXC® results from Barbados to Saint Lucia (iv) Crude oil from Trinidad to Tobago

Vaccines from Canada to Grenada

Lumber from the parish of Saint Joseph to the parish of Saint George in Dominica

Statistics on CXC® results from Barbados to Saint Lucia

Crude oil from Trinidad to Tobago

State TWO problems that may be encountered in the distribution of mangoes from the Caribbean to the United States of America.

Other than the use of global positioning systems (GPS) technology, outline TWO measures that firms could take to reduce some of the problems encountered in the distribution of goods globally.

Queenstown Traders Inc. provides distribution services for a wide range of imported and locally produced goods. The firm has a fleet of ten trucks and the managers want to use global positioning systems (GPS) in the management of the company's transportation.

Explain TWO benefits Queenstown Traders Inc. could gain by utilizing GPS in the management of its transportation.

List THREE financial institutions, other than commercial banks.

List FOUR services offered by commercial banks.

Outline ONE difference between 'savings' and 'investments'.

Identify ONE form of savings and ONE form of investments.

Savings

Investments

List THREE personal sources of capital that may be used to start a business.

The Banks family is struggling financially. A close family friend advises the family to consider preparing a personal budget.

Explain TWO benefits that the Banks family could gain from preparing a personal budget.