ig uae THE UNIVERSITY OF TRINIDAD & TOBAGO FINAL ASSESSMENT/EXAMINATION APRIL 2016 Course Code and Title: CONS2010 -ENTREPRENEURSHIP FOR CIVIL ENGINEERS Programme: B.A.Se. in Civil & Construction Engineering Systems. Date: Monday 18" April, 2016] ‘Time: 00am to 12:00noon Duration: 3hours PLEASE READ ALL INSTRUCTIONS CAREFULLY BEFORE YOU BEGIN THIS EXAMINATION Instructions to Candidates L 2. 3. 4 . This paper has 5 pages and 8 questions. ‘You are required to answer one (1) question from Section A. You are required to answer two (2) questions from Section B. You are required to answer three (3) questions from Section C. Each question is worth 10 marks. Key Examination Protocol . University of Trini and Tob Students please note that academic dishonesty (or cheating) includes but is not limited to plagiarism, collusion, falsification, replication, taking unauthorised notes or devices into an examination, obtaining an unauthorised copy of the examination paper, communicating or trying to communicate with another candidate during the examination, and being a party to impersonation in relation to an examination. ‘The above mentioned and any other actions which compromise the integrity of the academic evaluation process will be fully investigated and addressed in accordance with UTT’s academic regulations, Please be reminded that speaking without the Invigilator’s permission is NOT allowed. Page 1 of Term 2 20152016 Final Examinations CONS2010Section A 1) Aware that a competitor has successfully developed and launched a new type of building block, a manufacturer, who is the largest supplier of building blocks, has reduced the price of his products to retain his market share. State why you consider the manufacturer and/or the competitor to be/not to be an centrepreneurfentrepreneurs. (ii) A firm wants to try entrepreneurial management to further its business objectives. Review the firm’s current business practices, as stated below and with reference to the six (©) dimensions of entrepreneurship, state what the firm should continue to do/do instead: ‘The firm actively seeks new business opportunities but pursues those few ventures where only in-house personnel need to be used, as and when required. The firm has a team structure and pays bonuses based on annual profits. Section B 2. At the end of its second year of operations on December 31, 2015, a company had cash of $37,500 and inventory of $60,000. It owes $150,000 on a twenty (20) year mortgage and has bills totalling $112,500 to be paid within the next six (6) months. It also expects to collect the $127,500 owed to it by its customers by that time. Patents owned by the company are valued at $20,000 and (long-term) investments at $30,000. Plant and equipment was purchased at the start-up of operations for $600,000 and annual depreciation is on a straight line basis over six (6) years (no salvage value). Shareholders own $487,500 of common stock and afier an initial loss of $200,000, the second year shows a profit of $125,000, all of which was retained. Prepare the company’s Balance Sheet as at December 31, 2015 and compute the Debt/Asset and Quick Ratios. 3(@) In 2015 a company sold 6 housing units at a unit cost of $1 million. The direct cost of the houses sold was $4 million and overhead expense was $1 million. The interest expense on its 5 year loan was $6,000. Annual depreciation on its plant and equipment, which was purchased for $400,000, is on a straight line basis over ten (10) years (no salvage value). Income tax expense was 25 percent of eamings (before tax). Prepare the company’s 2015 Income Statement. Univesity of Trinidad and Tobago Page 2 of 5 “Term 2201872016 Final Examinations CONS2O0(ii) A company’s Income Statement for the year 2015 showed that the annual depreciation on its plant and equipment was $50,000 and it had net earnings (afier tax) of $200,000. Comparison of the 2015 and 2014 Balance Sheets showed that at the end of 2015, cash and outstanding customer accounts due for collection in 2016 had increased by $150,000 and $30,000 respectively. ‘The company’s 2015 Balance Sheet also showed that its bills due for payment within six (6) months was $115,000, as compared to $70,000 the previous year. The value of inventory in 2015 had increased by $40,000 over the 2014 amount, (long-term) investments also showed an increase of $25,000, whereas long-term debt decreased by $10,000. The company paid dividends of twenty (20%) percent of net earnings (after tax). Prepare the company’s 2015 Cash Flow Statement. 4(i)_ The purchase of land and the cost to design and construct a building was financed with a bank loan. After being used as the owner’s Head Office for several years, the building was sold via an advertisement in the daily newspapers. List all the components to be included in a Life Cycle Cost analysis of the building. (ii) The expected return on an investment of $8,000 per year in building renovations is a $9,000 increase in the annual rental value as well as a $10,000 increase in the resale value when the building is sold in 3 years time. The investment is to be financed by borrowing at an interest rate (net of inflation) of 5%. What is the Net Present Value of the investment? (i) Which of the goals of sustainable development is indicated by each of the following 1.1 Increase in a country’s Gross National Product (GNP) 1.2 Reduction in crime 1.3. Improved employment opportunities 14 Better wildlife protection 1.5 Increased insect vector control/eradication University of Trinidad and Tobago Term 220152016 Final Examinations cONs2010 Page of 55 Gi) 70 i) ay N The above sketch shows the shape and orientation of a proposed 8m x 16m house on a (square) lot 20m x 20m. The metal roof has been designed with a pitch of 1: 12 and a dark green factory-applied coating. The exterior walls are to be painted white. Comment on the design in terms of energy efficiency and roof maintenance. Use the Health and Safety Executive 5-step mode! to assess the (health and safety) risks on a multi-storey building construction site. Working inside the building, are electricians and plumbers, using ladders to complete the electrical and plumbing works on the floors above, prior to installation of the 3m high ceilings. Outside the building are painters working on scaffolding. Also working outside are equipment operators, truck drivers and labourers, loading and removing debris from the site, Preparations are being made to move the site entrance/exit gate closer (about 10 m) to a nearby intersection to facilitate access to the site from either road. ‘What business strategy would you recommend to a small firm producing high quality biodegradable goods in a market dominated by a large manufacturer of lower (but acceptable) quality, similar plastic products? How would you present the following information to the management of a company to facilitate their review of company strategy? {a) Loyal customers (b) Increased fuel costs (©) Outstanding wage negotiations (@Reduction in Value Added Tax (VAT) (Univesity of Trinidad and Tobago Page dof 8 Tes 2015/2016 Final Examinations cons20i08 (i) You have been assigned to complete the preparation of a project Team Charter and have observed that the names of the Client and team members as well as a description of the project, have already been included. Describe what further information should be included to complete the Team Charter. ii) A public sector client has designed a project in-house and engaged a private consulting engineer to supervise its construction. ‘The consultant’s review of the design has indicated that the materials specified can be provided by a single or very few supplier(s) in most eases, accounting for the higher than usual construction cost. The engineer has raised his concern with the designer and the latter has advised that the design is not the consultant's responsibility and that any change will delay the completion of the project. What ethical issues are involved and how can they be resolved? END OF EXAMINATION University of Trinidad and Tobagn Page Sof 5 ‘Term 201572016 Final Examinations CONS2010