CXC Principles of Business Exam guide: Section 5: Production

Identify factors in the production of goods and services;

Factors of production: Land, Labour, Capital, Enterprise.

Identify industries developed from the natural resources of Caribbean territories;

Caribbean industries developed from agricultural produce and mining.

Differentiate between production and productivity;

The effects of efficiency in the production of goods and services.

Explain the importance of productivity

Productivity as it relates to the efficiency of labour, including its value and importance; the factors affecting its supply; human resource development (including education, health, and working conditions).

Migration and its positive and negative effects on the labour force.

Describe the role of the entrepreneur in the decison making process;

Importance of entrepreneurial organizational skills.

Explain the role of capital in production;

Fixed working and venture capital.

Differentiate among the various production levels;

Production levels: subsistence, domestic consumption, surplus and export.

Classify the different types of production;

Types of production:

(a) extractive; (agriculture, mining, fishing)

(b) construction; (building)

(c) manufacturing; (assembling, refining)

(d) service; (transport, communication, tourism)

Describe the characteristics of cottage industry;

Cottage industries:

(a) home-based;

(b) mainly manual;

(c) small scale;

(d) use of local raw materials;

(e) use of family members as labour.

Outline the opportunities for and the benefits of developing linkage industries;

Linkage industries:

(a) backward;

(b) forward;

Outline the factors that determine the location of a business;

Factors affecting location:

(a) geographical;

(b) availability of raw materials and supplies;

(c) infrastructure;

(d) power;

(e) water;

(f) transport;

(g) health facilities;

(h) labour supply;

(i) governmental regulation

Outline the functions of a small business;

Functions of a small firm

Explain the effects of growth on a business;

Growth of a busines sand effects on:

(a) organizational structure;

(b) capital;

(c) labour;

(d) scale of production. (economies of scale)

(e) use of technology.

(f) potential for export.

Describe the economic and social implications of technological development.

Capital intensive versus labour intensive production in developing countries, mechanization and automation, e.g. computer-aided design (CAD) and computer aided instruction (CAI).