CXC questions. Flashcards
CXC POB PAPER 1/2/3
What are the 3 BASIC needs of people?
The three basic needs of people are Food, clothing and shelter.
What are the activities we engage in to satisfy our needs called?
The activities we engage in to satisfy needs are called Economic activities.
What is the name given to people for engaging in activities to satisfy needs?
The name is economic animals
What is the name for someone meeting their needs without the aid of of others or the facility of money?
It is called direct production
What is a subsistence economy?
A subsistence economy is an economy that produces for their own needs and survival, such as meeting the needs for family or community.
Activities/Example of a subsistence economy
Examples of a subsistence economy are hunting, fishing and crafting
What is barter/bartering?
Barter is the act of exchanging one thing for another without the use of money.
Advantages of the bartering system?
Advantages of the bartering the system are being able to dispose surpluses of goods with trading, being able to receive a wider range of things that they needed
Disadvantages of a bartering system?
Some disadvantages of bartering are needing to find someone who produced the said product or had it, this may require long periods of searching or having to go longer distances to find the said product and if the other person even wanted to offer the product, it may also not meet the trade value such as if someone had a product with the value of a 100 and yours only had 40, it would not meet its value.
What is a surplus?
A surplus is exceeding the quantity necessary.
What are other forms of money used before notes and coins?
Other forms of money used before notes and coins are animals, teeth especially if gold, salt, shells, grain and fish hooks.
What is the name of forms of money used before notes and coins?
The name for forms of money used before notes and coins is called ‘token money’.
What are the characteristics of money?
The characteristics of money are durability, exchangeable, scarce, portable and acceptable.
What does the characteristic scarce mean in money?
The characteristic scarce means that its harder to acquire, meaning that it’s value would be maintained.
What does the characteristic acceptable mean in money?
The characteristic acceptable means that the money should be allowed to use.
What does the characteristic portable mean in money?
The characteristic portable means that the money must be convenient to carry.
What does the characteristic exchangeable mean in money?
The characteristic exchangeable means that the money can be exchanged for services or goods.
What are the functions of money?
The functions of money consist of a measure of value, a store of value, medium for exchange and standard for postponed payment.
what does the function measure of value mean in money?
The function measure of value means that money can be used to state the prices of goods and services.
What does the function medium for exchange mean in money?
The function medium for exchange means that money can make exchanging good easier and makes barter unnecessary.
What does the function a store of value mean in money?
The function a store of value means that money can be saved and often goods cannot.
What does the function a standard for postponed payment mean in money?
The function a standard for postponed payments means that money can be earned and spent.
What are the instruments of exchange and payment?
The instruments of exchange and payment are Barter, Bill of exchange, Documentary credit and Electronic funds transfer
What is an Electronic Funds Transfer (EFT)?
EFT is the exchange of money without any physical paper money, this takes place in financial institutions such as banks and financial service providers through computer-based system and the transactions are done via debit or credit cards
What is Bill of Exchange?
Bill of exchange is a document used in home trade but it is also used in international debts, it requires a sum of money on demand or an agreed future date.
What is Documentary credit?
Documentary credit is a way to obtain payment before documents of ownership are released to the importer. The importer will make arrangements with the bank to guarantee payment will be made when the documents have been handed over.
What is a credit card?
A credit card is a card operated by banks that allow the owner/holder of the card to buy goods and services from traders without using cash or cheques, the card holder will make a payment and a voucher is given that they must repay.
What is a debit card?
A debit card is a card facilitated by the bank and credit card companies, this allows the owner/holder to purchase goods and services from traders without using cash or cheques. It allows the holder to pay with money from their own account.
What is a standing order?
A standing order also known as a bankers order is a convenient way to make payments where a regular amount needs to be paid such as monthly payments and loans.
what is a stakeholder?
A stakeholder is any person or group of people that has an interest in business and its activities
what is a feasibility study?
A feasibility study is an analysis of how successful a proposal to establish a business is likely to be.
why are feasibility studies important?
Feasibility studies are important because it enables the entrepreneur to not only establish if the idea is likely to work but also identify possible problems that may occur
what are primary sources?
what are secondary sources?
what is a Warranty?
what is a direct tax?
what is an indirect tax?
Functions of the public sector?
The policies of companies are formulated by?
What are the Advantages of sole traders?
what are the disadvantages of sole traders
What is a laissez-faire leader and their role?
What are the purposes of installing a suggestion box in a company?
Selecting the objectives and the procedures for achieving goals is called?
What is the function of the trade union?
what does the business opportunity element of the business plan gives a description of?
What are the characteristics of a leader?
The characteristics of a leader are honest, flexibility, focus, trustworthiness and intelligence
What is the cash used to secure a loan at the bank called?
What is the name of the person responsible for bringing together and organizing the factors of production?
What are the regulatory requirements of an entrepreneur?
What is the analysis of the viability of a business idea and an examination of the different aspects of operating a business called?
What is the name of monthly payments made to insurance companies by its policyholders?
What are the types of contracts
What is a simple contract?
What is a speciality contract?
Speciality contracts are contracts under seal, they’re a formal type of contract, written on special form and have three requirements
what is a contract?
it is an agreement and understanding between 2 or more parties, it is legally binding and enforceable in the court of law.
What are the characteristics of a contract?
The characteristics of a contract are legality, agreement, consideration, capacity and good faith
What is an offer?
An offer is a bid or proposal made by one person to another.
What is acceptance?
Acceptance is when a party to the contract willingly accepts the offer
what is a counter-offer?
what is good faith?
What is consideration?
What is invitation to treat?
What is capacity?
What is legality?
What is possibility?
What is discharge or termination?
what is a common mistake?
What is a mutual mistake?
What is an unilateral mistake?
What is letter of enquiry?
What is a quotation?
what is a purchasing order?
What is a requisition?
What is acknowledgement of order?
What is a delivery note?
what is a charging invoice?
what is an advice note?
what is a credit and debit/supplementary note?
What is a pro forma invoice?
what is insurable interest?
what is life insurance?
what is health insurance?
what is marine insurance?
what are the four factors of production?
what is land?
what is labour?
what is capital?
What is enterprise?
What is the importance of productivity?
What are inputs?
What are outcomes?
what is primary production?
What is secondary production?
What is tertiary production?
what are cottage industries?
what is the subsistence level in production?
What is the domestic level in production?
What is the surplus level in production?
What are the functions of a small business?
What are the advantages of a small business?
what are the disadvantages of a small business?
what are some sources of conflict in a business?
What are the financial institutions?
what is extractive production?
what is a linkage?
how is productivity measured?
what is fixed capital?
Types of advertisements are?
what is a market study?
what is marketing mix?
what is market research?
What are sales promotion
what are global logistics providers?
what are the functions of the central bank?
what are the functions of chamber of commerce?
