CSEC Principles of Business Paper 2 May/June 2026 - Free CXC Past Paper with Answers

Define the term 'contract'.

Identify TWO characteristics of a simple contract.

Identify TWO characteristics of a specialty contract.

The table below consists of four scenarios. Complete the table by indicating whether EACH scenario is an example of a simple contract, a specialty contract or no contract.

LIST FOUR ways in which a contract may be terminated or discharged.

Harry sent the following email to Stephen.

I'm selling my bicycle for $1000 cash. If you're interested, give me a call by tomorrow.

Stephen was not interested but he forwarded Harry's email to Erica, who then sent Harry the following email a week later.

Harry, I am interested in purchasing your bicycle. Will pay $500 now and $500 next month.

By making reference to TWO rules of offer and acceptance, explain whether Erica's actions could constitute acceptance of Harry's offer.

Describe EACH of the following methods used to promote sales.

Sales promotion

Personal selling

List FOUR methods of retailing.

State THREE roles of customer service.

State THREE functions of consumer organizations.

Four types of intellectual property rights are listed below. | Copyright | Industrial design | Patent | Trademark | From the list above, select the intellectual property right BEST described in EACH of the following scenarios. Write your responses in the table provided below.

• Grant Botanicals has the exclusive right to produce and sell a type of aloe vera-based shampoo.
• All the products in the line of cosmetics distributed by Wonder Girl Inc. bear the same symbol.
• Javed has ensured that no other manufacturer can produce toy cars with the same physical features as the car he created.

John went to see a popular movie at the cinema. He attempted to use his mobile phone to record the movie. The usher told him it was illegal to do so and asked him to put away his phone immediately. Explain why it is illegal for John to record the movie.

Identify the MOST suitable mode of transport for EACH of the following products. (i) A supply of medicine from Cuba to St Vincent and the Grenadines (ii) Lumber from Dominica to Grenada (iii) Documents from Barbados to Kenya (iv) Furniture from Port of Spain, Trinidad to San Fernando, Trinidad

The information below summarizes a recent transaction evidenced on a business document. Rhoades Motors, a used car dealer in Saint Lucia, contracted Straight Freight Co. to arrange for a shipment of motor cars to Jamaica via the vessel, Blue Waves. On arrival in Jamaica, the goods were cleared by Jolly Joes Inc. before being delivered to the customer. (i) Name the main business document used in the transaction above. (ii) Identify EACH of the following parties in the scenario above.

• The carrier
• The consignor
• The consignee

Outline THREE ways in which transport facilitates domestic trade.

Cozy Corner Furnishings produces household furniture in Bluebird Island. The firm purchases its raw materials from a single local supplier.

Explain TWO ways in which logistics and supply chain operations could benefit Cozy Corner Furnishings.

State TWO reasons why governments impose taxes.

Outline ONE difference between a 'direct tax' and an 'indirect tax'.

Identify TWO examples of a direct tax.

Identify TWO examples of an indirect tax.

A responsibility of governments is to provide assistance to businesses.

Describe THREE forms of assistance offered by Caribbean governments to businesses.

Explain how Caribbean citizens have benefited from EACH of the following social services provided by their governments.

National insurance/social security

Healthcare services