CARIBBEAN CORRESPONDENCE SCHOOL EXAM TYPE QUESTIONS PRINCIPLES OF BUSINESS

Transcription

1 CARIBBEAN CORRESPONDENCE SCHOOL EXAM TYPE QUESTIONS PRINCIPLES OF BUSINESS INSTRUCTIONS: DO ALL QUESTIONS 1. Benjamin is a farmer in a Caribbean country. He feeds his family from his farm and sells vegetables to grocery stores in a nearby town. He has an arrangement with one of these stores to trade his produce for items he needs from that store. (a) (i) State three levels of production. (3 marks) (ii) Name the level of production that farmer Benjamin is involved in. (iii) State the type of production that farmer Benjamin is involved in. (b) (i) Name the system that allowed farmer Benjamin to obtain goods from one of the stores for his produce. (1mark) (ii) Give two disadvantage of this system (iii) Explain how the use of money overcame these two disadvantages. Total (12 marks) 2. Dana is a recent Graduate from the University of the West Indies with a degree in Management Studies. She has been unable to find a job and finally decided to team up with two friends who majored in Information technology to start a web-based business. Dana approached you for advice. (a) (i) Outline to Dana and her friends the various types of business forms that she may choose from. (ii) Suggest the most suitable form of business for Dana and her friends and explain your reason for this choice.

2 (b) (c) Advise Dana and her friends on the legal requirements necessary to start the type of business you suggested. Describe two ways Dana would use the internet to market her products. Total (16 marks) 3. (a) (i) Differentiate between the autocratic and the democratic leadership styles. (ii) Give two reasons why a classroom teacher should employ an autocratic leadership style. (iii) Give two reasons why the president of a community organization should employ a democratic leadership style. (b) (i) Outline two ways in which managers can establish good management and worker relationships. (ii) Discuss the effect each method would have on workers. 4. (a) (i) What is meant by a natural resource? (ii) Discuss the importance of two natural resources in your country. (b) (i) Define the term human resources. (ii) Suggest three ways in which the management team of a company could increase the efficiency of its workers. (c) Discuss how the efficiency of two other resources may contribute to the growth of a firm. 5. (a) (i) Differentiate between advertising and sales promotion. (ii) Describe two sales promotion activities that you could suggest to a business person who is experiencing a decline in the sale of his products. (b) (i) Subsequent to a market research it was revealed that poor packaging

3 was the reason for the decline in sales. Discuss the importance of packaging in the marketing of goods. (c) (i) Explain the term channels of distribution (ii) Identify the channel that you would choose for each of the following products: (a) farm produce (b) bread (c) canned products (3 marks) (iii) Give one reason for each of your choices in (c) (ii) above. (3 marks) 6. (a) (i) Explain the purpose of the following documents used in business transactions. (a) Purchase order (b) Invoice (c) Credit note (d) Statement of Account (ii) Explain the importance of the Certificate of Origin to Caribbean countries for international trade. (ii) Outline two methods by which payments may be received by local producers for goods exported. (b) Outline two types of business insurance. (c) Discuss two ways in which insurance companies in your country assist local businesses. Total (20 marks) 7. (a) (i) List four roles of a government. (ii) Give two examples for each of the two roles listed in (i) above to show how the government in your country performs these roles. (b) (i) Define the term tax (ii) Distinguish between direct and indirect taxes. (iii) Discuss three reasons to support the importance of citizens

4 paying taxes. Total (20 marks) 8. (a) (i) What is meant by the standard of living? (ii) State two indices that may be used to determine the standard of living of a country. (b) (i) Differentiate between economic growth and development. (ii) Discuss three factors that hinder growth in your country. (iii) For each factor discussed in (b) (ii) above give a suggestion that the government could use to address each and thus achieve growth. 9. (a) (i) In addition to your country, name six other CARICOM countries. (7 marks) (ii) Outline three economic problems being experienced by your country (3 marks) (iii) Explain how the CSME will help to alleviate one of the problems outlined in (a) (ii) above for your country. (b) (i) Identify two economic institutions that support Caribbean development. (ii) Outline the main function of each institution listed in b (i) above. 10. You are an employee of Clyde s manufacturing which has been operating for six years. It began as a small sole trading business and has evolved into a medium sized partnership business. The Manager has decided that an organizational chart needs to be drafted to assist him in the planning and organization of the business. You have been asked to draft the company s organizational chart. (a) (i) Draw the organization chart of Clyde s Manufacturing based on the information given below. (12 marks) There are four department managers reporting to the General Manager. These include: Production, Marketing, Finance and Human Resources. The

5 General Manager has a personal assistant/secretary. The Production Supervisor oversees a staff of ten workers and is supported by a Technical Assistant whom he consults on production matters. Marketing is divided into two departments with one supervisor in charge of advertising and the other sales promotion. The Senior Accountant reports to the Finance Manager and oversees the accounts payable and accounts receivable departments. You report directly to the Human Resources Manager. (ii) Identify the type reporting relationship between the General Manager and the Marketing Manager. (iii) Identify the type reporting relationship between the General Manager and the Personal Assistant/Secretary. (1mark) (b) (i) Name the type organization represented by this chart you have drawn for Clyde s Manufacturing. (1mark) (ii) Explain one advantage of this type of organization. (3 marks) 11. (a) (i) What is the difference between an agreement and a contract? (ii) Outline six essentials of a valid contract. (b) Danielle decided to sell her computer for $30,000. Her friend Martin offered her $ instead. (i) State the term used to describe the new offer made by Martin. (ii) Explain three important essentials that would create a valid contract in the case above. (3 marks) (c) (i) Differentiate between a simple and a specialty contract Dana purchased a television on hire purchase from Bryan s Electronics. She unfortunately lost her job and visited Bryan s Electronics to explain that she had paid 75% of the total outstanding and would be unable to pay her installments for at least the next five months, by which time she was sure of a new employment position. The customer service clerk informed Dana that if her arrears

6 amounted to three months, then her television would be repossessed. Dana told the customer service representative that this action would be unfair since she has paid her installments on time each month, and asked to speak to someone at a senior level. (ii) Explain Dana s rights in this case based on the law governing hire purchase contracts. (iii) How could the customer service representative have dealt with this situation to ensure good customer relations.