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r FORM TP 2017271

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MAY/JUNE 2017
201

CARIBBEAN EXAMINATIONS COUNCIL


CARIBBEAN ADVANCED PROFICIENCY EXAMINATION@

MANAGEMENT OF BUSINESS

UNIT I- Paper02

2 hours 30 minutes

READ THE FOLLOWING INSTRUCTIONS CAREFULLY.

l. This paper consists of THREE questions. Answer ALL questions.

2 Write your answers in the spaces provided in this booklet.

J You may use a silent, non-programmable calculator to answer questions

4 Do NOT write in the margins.

5 If you need to rewrite any answer and there is not enough space to do so on the
original page, you must use the extra lined page(s) provided at the back of this
booklet. Remember to draw a line through your original answer.

6. If you use the extra page(s) you MUST write the question number clearly in
the box provided at the top of the extra page(s) and, where relevant, include
the question part beside the answer.

DO NOT TURI\ THIS PAGE UNTIL YOU ARE TOLD TO DO SO.

Copyright @ 2016 Caribbean Examinations Council


All rights reserved.
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0213302003 I
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1. Thomas is in the process of establishing Creative Fashions Ltd, a designer clothing fashion store
in the tourist community of Greenshore Island. The Small Business Association of Greenshore
Island suggests that Thomas decides whether his products would target the local or overseas
market. Additionally, he should choose either a sole trader or a partnership form of business.

(a) Define EACH of the following terms

(i) Sole trader business

[2 marksl

(ii) Partnership business

[2 marks]

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(b) Explain THREE ways in which the Government of Greenshore Island could create an enabling
environment to assist Thomas in targeting the overseas market for his products.

[9 marksl
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021 3302005 _l
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Discuss how EACH of the following stages in the decision-making process would assist
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Thomas in choosing whether to target the local or overseas market.

Data collection
Formulation of alternative strategies
Evaluation of results

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[12 marksl

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2 The EZ Canning Company has been experiencing declining profits steadily over the last 12
months. In addition, there have been poor interpersonal relationships among workers. The last
staffsatisfaction survey showed thatworkers'motivation levels had fallen significantly. Bill Jones,
the human resource manager, wants to change the negative work environment. He believes that
teamwork will help to improve the profitability of the company.

(a) Outline TWO differences between Hertzberg's hygiene theory and Maslow's hierarchy of
needs theory.

[4 marksl

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Explain THREE ways in which teamwork can help to increase profits attheEZ Canning
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[9 marks]
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(c) Discuss THREE ways in which EACH ofthe following communication strategies can improve
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Maintaining eye contact


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[12 marks]

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MODULE 3: BUSINESS FINANCE AND ACCOUNTING

3. (a) Define EACH of the following terms

(i) Current assets

[2 marks]

(ii) Budgetary control

[2 marks]

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r (b) Explain Two ways in which
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a business can benefit from having a cash budget

[6 marksl

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Janet Palmer is the owner and manager of Beautiful Flowers.
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She was advised to prepare
a balance sheet to hetp her with managing the business. In response,
Janet prepared the
following document.

Beautiful Flowers Balance Sheet as at Decembe r 31,2016


Current Liabilities

Buildings 62 660

Debtors 28 000 90 660

Equity

Capital 76 600

t67 260

Current Assets

Creditors 26 200

Equipment 20 000

Bank Overdraft 24 720 70 920

Fixed Assets

Stock 8 360

Cash 8 500 16 860

87 860

Use the information above to prepare a corrected balance sheet for Beautiful Flowers as
at December 31,2016.

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