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MAYiJLINE 2017

CARIBBEAN EXAMINATIONS COUNCIL

CARIBBEAN ADVANCED PROFICIENCY EXAMINATION@

MANAGEMENT OF BUSINBSS

UNIT 2 - Pzper02

2 hours 30 minutes

READ THE FOLLOWING INSTRUCTIONS CAREFULLY.

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

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

J Do NOT write in the margins.

4 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.

5 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 TURII THIS PAGE UNTIL YOU ARE TOLD TO DO SO.

Copyright @ 2016 Caribbean Examinations Council

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rights reserved'

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r MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT
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1. Techno Ltd assembles laptops and other computer gadgets. The finished products are distributed
to three Caribbean countries. Last year, the supplier increased the cost of materials by 100 per
cent. This has caused the business to become unprofitable.

(a) Define EACH of the following terms:

(i) Production input

[2 marksl

(iD Production output

[2 marks]

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 r (b)
5

Pamela, the owner of the business, is considering focusing on flow production as a means
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of increasing profitability. Explain EACH of the following production methods:

(i) Job production

[3 marks]

(ii) Batch production

[3 marks]

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r (iii) Flow production
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[3 marks]

(c) Discuss THREE ways in which Techno Ltd can benefit from utilizing the flow production
method.

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 I- 7 -1

[12 marksl

Total25 marks
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r MODULE 2: FUNDAMENTALS OF MARI(ETING
8 -l

2. Over the past year, LeAnn Fumishings Ltd has been struggling to compete with the other fumishings'
store in the Caribbean lsland of Tango. Customers seem to prefer the furnishing sold by LeAnn's
competitors and this has led to a decline in sales at LeAnn Furnishings. After doing some research,
the owner/manager, Petula Jones, discovered that a number of factors, including price, could
influence customer buying behaviour so she decided to remove some of the value-added feafures
from the furnishings in order to reduce their price.

(a) Define EACH of the following terms

(i) Value added

[2 marksl

(ii) Price elasticity of demand

[2 marksl

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 r (b)
9

Explain how THREE named factors that influence customer buying behaviour,
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[9 marks]

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r (c)
- 10 -

Discuss THREE promotion tools that the owner/manager, Petula Jones,

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of LeAnn
Furnishings Ltd could use to help boost sales.

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 r 11
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[12 marksl

Total25 marks
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r MODULE 3: SMALL BUSINBSS MANAGEMENT
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3. Paul and his wife Joanna own and operate JoPaul Farm, a one-acre plot of land on which they
rear chickens and grow bananas and tomatoes. They want to get into the banana chips and tomato
ketchup markets in order to increase their profit margin. JoPaul Farm is located within the Caribbean
island of Saint James which has a free market economy.

(a) Outline TWO differences between an 'entrepreneur'and a 'social entrepreneur'.

[4 marks]

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 r (b)
-13-

Explain THREE ways in which JoPaul Farm could benefit from the free market economy
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of Saint James.

[9 marks]
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r (c)
-14-

As Paul and Joanna seek to expand their business, they have decided to seek help so that
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the business continues to be profitable. Discuss THREE types of assistance that non-
govemmental agencies offer to small businesses such as Jopaul Farm.

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 r - 15 - -l

[12 marksl

Total25 marks

END OF TEST

IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.

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