POB

Question 1

What is a contract

Answer 1

A special legal binding agreement between two or more people

Question 2

What is an agreement

Answer 2

An understanding or a mutual exchange of promises between two or more persons

Question 3

What are the parties to a contract

Answer 3

Offeror- the person who made the offer
Offeree- the person whom the offer is made

Question 4

What is a simple contract

Answer 4

A simple contract may be defined as written, oral or implied by conduct (cannot be enforced by law)

Question 5

Offer and acceptance

Answer 5

A contract is formed when an offer has been unconditionally accepted (both parties accept)

Question 6

An offer

Answer 6

This is an indication to one party that they are willing to make a proposal and to be legally bound by it

Question 7

Acceptance

Answer 7

When the offeree agrees to the terms of the offer made by the offeror

Question 8

Consideration

Answer 8

The benefit received by both parties either in the form of cash,services or goods

Question 9

Speciality contracts

Answer 9

They must be signed, sealed and delivered

Question 10

What is a breach of contract

Answer 10

A refusal of one party to fulfill the obligation of the contract

Question 11

Types of insurance policies

Answer 11

Life assurance- a promise of financial compensation for events that must happen such as death

Business insurance- they provide protection against financial losses due unexpected events such as fire

Question 12

Difference between insurance and assurance

Answer 12

Insurance- a contract that provides financial protection against specified risks like car, health and property on the other hand assurance are usually long term contracts that provide cover for events that will happen such as deaths
Insurance might happen but assurance will happen

Question 13

Two ways insurance is beneficial to the firm

Answer 13

1. Helps protect the firm from unexpected financial losses due to events like natural disasters this protection helps the business to continue operating smoothly without facing significant setbacks
2. Having insurance enhance the firm’s credibility and reputation

Question 14

Purpose of three business documents

Answer 14

1.Purchase requisition forms- helps to control the movement of stock and to inform the firm on how stocks are used and by whom
2.pro-forma invoice- it helps both parties understand the transaction before it’s finalized
3.invoice- this document outlines the data of the sale including the items sold, quantities, prices and payment terms

Question 15

Production

Answer 15

The making of goods or services that can be used or sold to satisfy the needs and wants of people

Question 16

Difference between production and productivity

Answer 16

Production- the process of combining inputs with Human Resources to create goods or services to satisfy human wants and needs
Productivity- the amount produced per worker, this means that the resources are being used in an effective and efficient manner

Question 17

Productivity format:

Answer 17

Productivity= output/ goods and services produced OVER input/ workers, money, machinery and raw materials

Question 18

Extractive production and two examples

Answer 18

The process of obtaining raw materials or resources from the earth or environment examples are mining and fishing

Question 19

Two examples of service industries in the Caribbean

Answer 19

Tourism service and financial services

Question 20

What is capital intensive production

Answer 20

Production service which relies heavily on machinery, technology and capital inventory rather than labor

Question 21

What is labor intensive

Answer 21

A production which relies heavily on human labor rather than machinery or technology

Question 22

Difference between subsistence production and domestic production

Answer 22

Subsistence focuses on producing enough for one’s own needs while domestic involves producing goods for the boarder market within the country

Question 23

Two features of small business

Answer 23

Customer service and flexibility in adapting to changing market demands

Question 24

Explain two level of production

Answer 24

Surplus is when a business produces more goods than needed for immediate consumption or demand while export is when a business produces good specifically to sell to other countries or markets outside its own

Question 25

Main difference between primary and secondary production

Answer 25

Primary involves extracting or harvesting raw materials while secondary focuses on processing these raw materials into finished products

Question 26

What are two features of cottage industries

Answer 26

Two key features of cottage industries are their production of handmade or unique products and their contribution to local economies by providing employment opportunities at a small scale.

Question 27

List four factors of production

Answer 27

Land, labor, capital and enterprise

Question 28

List four factors of production

Answer 28

Land, labor, capital and entreprise

Question 29

What is forward linkage and backward linkage

Answer 29

Forward- one industry provides raw materials for another
Backward- the demand of one industry leads to the development of another industry

Question 30

Market and marketing

Answer 30

Market- the environment where buyers and sellers interact to exchange goods and services
Marketing- all the activities that enable trade to take place in a profitable and efficient way

Question 31

What is the marketing mix

Answer 31

4Ps: Product, Price, Place, and Promotion. Product is what you offer, Price is how much you sell them for, Place is where you sell them, and Promotion is how you advertise and market your goods to attract customers.

Question 32

What is the method of promoting sale

Answer 32

Advertising through social media, offering discounts or promotions, hosting events or giveaways, and collaborating with influencers to reach a wider audience. By using these methods effectively, you can attract more customers and boost sales

Question 33

Techniques of selling

Answer 33

Cold calling or telemarketing – selling to an unknown persons
Warm calling – contacting someone you know
Hard selling – selling a product that may not be needed
Soft selling – using gentle persuasion to convince a buyer
Solution selling – helping people to choose the right product
Customer selling

Question 34

Explain the various terms of sales