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CSEC>> Principles of Business

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Questions on Profile Two (part II)
Yvonne Harvey, Contributor

St. Mary High School defeated Jamaica College to emerge victors of the 2005 National Schools' Debate competition held at the LOJ Auditorium, New Kingston. - File

THE FIRST part of this lesson will surround a question taken from past CXC paper, January 2001(General), Section 1, question 2. You were given the question for consideration as your assignment last week. I will now present my discussion and guideline answer on the question.

DISCUSSION AND GUIDELINE ANSWER

(a) Migration refers to the permanent movement of people from one area to another within a country (internal movement), or from one country to another (external movement) for at least one year. The correct time period of the movement must be included in your explanation in order to obtain full marks.

(b) The negative effects of internal or external migration or both may be given. Internally, the negative effects of migration include: shortage of labour in one area and surplus of labour in another area, overpopulation in one area with resulting social disorders, e.g., crime, etc. External migration results in negative effects such as 'the brain drain', families abandoned and left to fend for themselves by migrants, lower standard of living, etc. Any three negative effects will be accepted.

(c) Migration can have positive effects on a country.
This is especially true of external migration which reduces the strain on the government, in cases where the migrants were previously unemployed. Also, many of these migrants return years later and contribute positively to their countries through skills learnt in other countries and/or through money they bring back.
The points brought out must be explained accurately in order to score full marks.

(d) Governments may encourage nationals to return by offering attractive and affordable housing, jobs for those who require them, by allowing them to return with their personal effects without having to pay duties, or only requiring them to pay small amounts of duty, by ensuring that their country is as close to crime-free as possible, etc. Any one measure properly stated will be accepted.

Now let's try another profile two question. This is past CXC question, taken from January 2000 paper (General, Section ll, question 6.

Rapid structural change is being experienced throughout the world, bringing with it a growing importance of the contribution of small firms/businesses to economic development in every country. Many industries and firms are now buying and selling goods via the computer through a system called the Internet.

(a) Define the term small business. (2 marks).

(b) Given the following sectors in the Caribbean, indicate which FOUR are most likely to be dominated by small businesses:
(i) bauxite production
(ii) retailing
(iii) agriculture
(iv) petroleum refining
(v) finance and banking
(vi) personal services
(vii) fishing. (4 marks).

(c) Discuss FOUR ways through which small businesspersons can use the Internet to assist them in their business goals. (8 marks).

(d) Suggest THREE reasons why the government of your country should encourage the growth of small businesses as a way to promote economic development. (6 marks).

Total: 20 marks

DISCUSSION AND GUIDELINE ANSWER

(a) There are a number of acceptable definitions of the small firm. You may wish to use any of the three definitions from Trinidad and Tobago, or any other definition that you are comfortable with. The Trinidad and Tobago definitions are:

* A firm whose total assets excluding land and buildings does not exceed TT$500,000.

* According to The Central Statistical Office, a small business is a business that employs less than 10 workers.

* A firm that employs only one top manager who should manage the business and perform other functional duties as well.

Generally speaking, a small firm is one with virtually no middle management, i.e., there is hardly any supervisors or subordinate managers.

(b) The FOUR sectors most likely to be dominated by small businesses are retailing, agriculture, personal services and fishing.

(c) The Internet allows small business persons to: communicate with others in the same field, get information and ideas that are current in their field, advertise their products, source raw materials and goods at reasonable prices, source markets/outlets for their goods and services, get access to Internet buying and selling which boosts sales, etc. The points must be discussed fully to show how the small business benefits from the Internet in order to gain the full eight marks.

(d) Governments should encourage the growth of small businesses because:

* They provide healthy competition to larger firms and force them to sell at more reasonable prices.

* Small businesses reduce unemployment through employing people.

* They produce goods and services that people want and this will increase standard of living.

* They contribute towards GNP/National Income.

* They use up natural and other idle resources.

* They provide linkages to other firms so they can be certain of their sources of raw materials and/or their outlets.

* New ideas are usually tried out in small firms.

* Small firms often grow into larger successful businesses, these firms are flexible and can produce what is required for economic development. The THREE reasons chosen must be developed properly in order to gain the full six marks.

That's it for this week. We will continue to consider questions on this profile next week.

Keep reading and revising the topics which fall under this profile.

* Yvonne Harvey teaches at Glenmuir High School.

 
 
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