CXC Principles of Business Exam guide: Section 1: The Nature of Business

CXC CSEC Principles of Business Exam guide: Section 1: The Nature of Business

CXC CSEC Principles of Business Exam Guide

Profile 1: Organizational Principles

Section 1: The Nature of Business


The students should be able to:


Explain terms and concepts related to business;

Definition and explanation of the following terms and concepts:

(a) enterprise

(b) entrepreneurship

(c) barter

(d) profit

(e) loss

(f) trade

(g) organization

(h) economy

(i) producer

(j) consumer

(k) exchange

(l) goods

(m) services

(n) market

(o) commodity

(p) capital

(q) labour

(r) specialization

2. Trace the development of instruments of exchange;

Brief history of trading instruments from subsistence economy to money economy, including the use of the following:

(a) bills of exchange

(b) credit cards

(c) electronic transfer

(d) tele-banking and e-commerce


State reasons why an individual may want to establish a business;

Reasons for establishing a business


Describe the various forms of business organizations and arrangements;

Forms of business organizations and arrangements: definition, formation and management of:

(a) sole trader

(b) partnerships

(c) co-operatives

(d) companies (including conglomerates and multi-nationals)

(e) franchises

(f) state corporations and nationalized industries

(g) local and municipal authorities

(h)government departments

(j) concept of private and public sectors

5. Differentiate among the different economic systems;

Types of economic systems:

(a) traditional (subsistence)

(b) command or planned (socialist)

(c) free or capitalist

(d) mixed (public and private)

6. Identify the stakeholders involved in business activities;

Owners, employees, customers and all other members of society


Discuss the role of the stakeholders involved in business activities;

Role of employers, employees, consumers and government.

8. Outline the functions of a business;

Functions of a business in satisfying needs and wants through the provision of goods and services.


Describe the role of business within a community.

Economic, financial, social, political and ethical.


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In reply to by Jemz_06 (not verified)

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Attean (not verified) 8 October 2011 - 11:32pm

write a brief history of of trading instruments from subsistenence economy to money economy

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hesia abrams (not verified) 15 September 2013 - 10:21am

what is a brief history of trading instrument from subsistence economy to money economy with the use of bill exchange, credit cards, electronic transfer, telebanking, and e-commerce.

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In reply to by hesia abrams (not verified)

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