Total marks: 100 · Duration: 2 hours
Instructions to candidates
- This paper consists of FIVE compulsory questions. Answer ALL questions.
- EACH question is worth 20 marks. Allow about 24 minutes per question.
- Questions 1 and 2 are on Organisational Principles (syllabus Sections 1–4), Questions 3 and 4 on Production, Marketing and Logistics (Sections 5–7), and Question 5 on Finance, Government and Technology (Sections 8–10).
- In the January 2027 sitting this paper is "hybrid": you read the questions on screen and write your answers in the answer booklet.
- Where a question says "explain" or "discuss", develop each point with a reason or an example linked to the case.
- A silent, non-programmable calculator may be used. Show all working.
Paper
Question 1
Marlon Thompson operates a small furniture manufacturing business in Port of Spain, Trinidad, as a sole trader. He employs six workers and produces wooden tables, chairs and cabinets for sale to local retailers. Marlon is considering expanding his business by purchasing new machinery and hiring additional workers.
(a) Define the term "manufacturer". (2 marks)
(b) State TWO factors of production Marlon uses in his business. (2 marks)
(c) Explain ONE advantage and ONE disadvantage to Marlon of operating as a sole trader. (4 marks)
(d) Describe TWO sources of finance Marlon could use to expand his business. (4 marks)
(e) Suggest TWO reasons why Marlon might change his business from a sole trader to a private limited company. (4 marks)
(f) Outline TWO documents that must be prepared and registered to form a private limited company. (4 marks)
Total 20 marks
Question 2
Sharon Bartholomew works as a sales clerk at Electronics World in Bridgetown, Barbados. She earns a basic weekly wage of $450.00 and receives a commission of 5% on all sales above $5,000.00 per week. Last week, Sharon's total sales amounted to $12,000.00.
(a) Define the term "commission". (2 marks)
(b) Calculate Sharon's commission for last week. Show ALL working. (3 marks)
(c) Calculate Sharon's total earnings for last week. (2 marks)
(d) This week Sharon's sales are $4,600.00. State her total earnings for the week and explain your answer. (2 marks)
(e) Distinguish between a wage and a salary. (2 marks)
(f) Explain TWO advantages to Sharon of receiving commission in addition to her basic wage. (4 marks)
(g) Explain TWO non-financial methods Electronics World could use to motivate its sales staff. (4 marks)
(h) State ONE disadvantage to Electronics World of paying its staff by commission. (1 mark)
Total 20 marks
Question 3
Caribbean Manufacturing Limited (CML) produces soft drinks for distribution throughout the Caribbean. The company has recently received complaints from customers about the quality of its products. Management is concerned about maintaining the company's reputation and market share.
(a) Define the term "quality control". (2 marks)
(b) State TWO methods CML could use to ensure quality control in its production process. (2 marks)
(c) Explain TWO reasons why quality control is important to CML. (4 marks)
(d) Discuss TWO ways in which poor-quality products could affect CML's business. (4 marks)
(e) Distinguish between quality control and quality assurance. (2 marks)
(f) Last week CML bottled 48,000 drinks, of which 1,200 were rejected at final inspection. Calculate the reject rate as a percentage. (2 marks)
(g) Explain TWO ways CML could use technology in its bottling plant to improve the quality of its products. (4 marks)
Total 20 marks
Question 4
Modern businesses face increasing competition from both local and international companies. To remain competitive, businesses must develop effective marketing strategies and maintain high levels of customer service.
(a) Define the term "marketing". (2 marks)
(b) Explain THREE ways in which a business could use advertising to increase sales. (9 marks)
(c) "Good customer service is more important than low prices in ensuring business success."
To what extent do you agree with this statement? Justify your answer. (9 marks)
Total 20 marks
Question 5
(a) The table below shows selected information from the trading account of Best Value Supermarket for the year ended 31 December 2025.
| Item | $ |
|---|---|
| Opening inventory | 45,000 |
| Purchases | 180,000 |
| Closing inventory | 35,000 |
| Sales | 310,000 |
(i) Calculate the cost of goods sold. (3 marks)
(ii) Calculate the gross profit. (2 marks)
(iii) Calculate the gross profit percentage (gross profit margin). (2 marks)
(iv) Explain ONE reason why the manager would want to know the gross profit percentage. (3 marks)
(b) The government of Jamaica has increased the General Consumption Tax (GCT) from 15% to 18% on selected imported goods, to raise revenue for public services and to encourage citizens to buy locally produced goods.
(i) State, with ONE reason, the type of tax represented by GCT. (2 marks)
(ii) Explain TWO reasons why a government would increase taxes. (4 marks)
(iii) Discuss TWO effects that an increase in GCT could have on consumers in Jamaica. (4 marks)
Total 20 marks