Principles of Business For CSEC®: 2nd Edition
Principles of Business For CSEC®: 2nd Edition
Principles of Business For CSEC®: 2nd Edition
2nd edition
1 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 4: Legal aspects of business
5. John Smith recently opened a dry-cleaning business in the town of Mandeville. Two weeks
after opening the business, it was destroyed by a fire. In conducting the investigation, the fire
chief enquired if Mr Smith had insurance, to which he replied that he did not.
(a) Explain the meaning of the term “insurance”.
(2 marks)
(b) Discuss two (2) principles upon which the concept of insurance is based.
(4 marks)
(c) Advise Mr Smith on three (3) types of insurance that he could use to protect his business.
2 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 4: Legal aspects of business
(6 marks)
(d) Explain two (2) forms of business documents that Mr Smith is likely to use in his
dry-cleaning business.
(4 marks)
(e) Discuss two (2) ways in which Mr Smith’s dry-cleaning business could benefit from
having insurance coverage.
(4 marks)
(24 marks)
3 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019