201 3 7 “] CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE * EXAMINATION i Ugg FORMATION REQU! ED CLEARLY IN CAPITAL LETTERS. FILL IN ALL TEST. CODE | 0 | 1 SUBJECT _ PRINCIPLES OF BU: PROFICIENCY __ GENERAL. REGISTRATION NUMBER SCHOOLICENTRE NUMBER NAME OF SCHOOL/CENTRE CANDIDATE ULL NAME (FIRST, MIDDLE, LAST) DATE OF BIRTH SIGNATURE LL AON _|[_ Ga. rest cope 01240032 | FORM TP 2021032 JANUARY 2021 CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE* EXAMINATION PRINCIPLE: OF BUSINES: Paper 032 — General Proficiency J hour 15 minutes READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1. Answer ALL question 3. Do NOT write in the margins. 4. Youare advised to take some time to read through the paper and plan your answers. You may use a silent, non-programmable calculator to answer questions. 6. 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. the box provided at the top of the extra page(s) and, where relevant, include | 2. Write your answers in the spaces provided in this answer booklet the question part beside the answer. 7. Ifyou use the extra page(s) you MUST write the question number clearly in | DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO S Copyright © 2020 Caribbean Examinations Council All rights reserved. [_orsvoos2uesec 2021 IMINO _|r “ 7 INSTRUCTIONS: ‘The following case study contains information for a busi and answer the questions that follow each section. Read the case CASE STUDY Super Ace Ltd SECTION A Rory and Alicia Dennis are successful, experienced accountants. ‘They have always wanted to own and operate a variety store in their urban community. Super Ace Ltd would be a dream come true. Rory and Alicia plan to join with their two adult children to sell a wide range of products to satisfy demand in their community. Rory and Alicia intend to sell their own brand of produets and hope that the business will be a huge success. Additionally, they plan to expand the store into a supermarket within five years. The couple has already begun to reeruit stalf from within and outside the community to fill the positions of operations supervisor, clerk and cashier. OPERATIONAL PLAN 1. Description of the Business (a) Identify the type of business proposed by Rory and Alicia, based on the intended ownership. a mark) () 1¢ TWO features of the type of business ownership identified in (a). (2 marks) GO ON TO THE NEXT PAGE 01240032//CSEC 2021 L in 0 gE _|2. reas of Business Outline TWO necessary functional areas that will be required in the business. (4 marks) 3. Internal Organizational Structure Draw and label the org THREE positions. izational chart of the proposed business, showing THREE levels and ( marks) Total 10 marks GO ON TO THE NEXT PAGE 01240032/1/CSEC 2021 L (UN _|rc SECTION B 5 Rory and Alicia intend to secure contracts with a few local and overseas suppliers. They plan to have a grand opening and to invite the media to attend, ‘They also intend to promote the business by utilizi social media and a website. They will also take orders online as well as over the telephone and offer delivery services to nearby customers. T give Alicia an opportunity to market her clothing and craft accessory line, which she has always produced and sold from home. Rory and Alicia hope to target different groups within the community but are concerned about the level of competition they might experience from similar businesses. However, they are confident that producing and selling their unique products will give them a competitive advantage. MARKETING PLAN 4. Promotional Strategies (a) Identify TWO traditional media that Super Ace Ltd could use to promote its products. (b) Outline ONE benefit of uti ing traditional media in promoting Super Ace Ltd. @ marks) (©) Identify the TWO non-traditional methods Super Ace Lid intends to utilize to promote its, business. (2 marks) GO ON TO THE NEXT PAGE 01240032/J/CSEC 2021 L A _|rr «@ 7. 7 Outline TWO benefits to the firm of utilizing any of the non-traditional methods identified in (). (4 marks) Marketing and Industry Trends Identify the type of industry in which Alicia is involved when producing and selling eraft and clothing from home. (mark) ggest THREE groups that would likely be a part of Super Ace’s target audience. (3 marks) GO ON TO THE} EXT PAGE 5 (a) (b) 01240032//CSEt AL _|r 2 7 6. Competition (a) List THREE likely competitors of Super Ace Ltd. “( marks) (b) est THREE reasons why Super Ace Ltd could be successful over its competitors. Gia s) ‘Total 20 marks GO ON TO THE NEXT PAGE 01240032/1/CSEC 2021 L A EE |r SECTION C - Rory and Alicia have substantial savings and hope to obtain the remainder of the capital to set up the business from family. They also intend to obtain a small loan from their credit union, although their local bank is offering lower interest rates. ‘The government has also promised to provide loans at very low interest rates to small businesses that have been operating for two years. However, there is an economic downturn and the couple is careful of starting too big and not being able to attract customers. FINANCIAL PLAN 7. Sources of Capital (a) Identify TWO personal sources of capital that Super Ace Ltd intends to utilize (2 marks) (b) Suggest THREE reasons why Rory and Alicia would prefer to obtain a loan from the e tunion despite the lower interest rates being offered by banks. (3 marks) (©) Outline ONE benefit the firm could receive by obtaining a loan from the government. (2 marks) GO ON TO THE NEXT PAGE 01240032/1/CSEC 2021 L ng _|r “: 1 8 Executive Summary Using information from all THREE areas of the case, write an executive summary of the business, which could be used by Rory and Alicia to secure the loan, " “G mar s) Total 10 marks END OF TEST IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST. 01240032/N/CSEC 2021 mL _|r " 7 EXTRA SPACE Ifyou use this extra page, you MUST wri the question number clearly in the box provided. Question No. 01240032/N/CSEC 2021 L gu gg _|r “Be 1 EXTRA SPACE Ifyou use this extra page, you MUST write the question number elearly in the box provided. Question No. 01240032/N/CSEC 2021 L ae _|r “b 1 EXTRA SPACE, Ifyou use this extra page, you MUST write the question number elearly in the box provided. Question No. 01240032/N/CSEC 2021 L gg _|r “ 7 EXTRA SPACE Ifyou use this extra page, you MUST write the question number clearly in the box provided. Question No. 01240032//CSEC 2021 L gg _|CANDIDATE’S RECEIPT INSTRUCTIONS TO CANDIDAT! 1. Fill in all the information requested cle: rly in capital letters. testcope:] 9] 12] 4}o]o} 3] 2 SUBJECT PRINCIPLES OF BUSINESS ~ Paper 032 PROFICIENCY: ERAL REGISTRATION NUMBER: FULL NAME: __ - (BLOCK LETTERS) Signature: Date lip is detached by the Supervisor or Invigilator and given to you when you this booklet. 3. Keep it in a safe place until you have received your results, | INSTRUCTION TO SUPERVISOR/INVIGILATOR: Sign the declaration below, detach this slip and hand it to the eandidate as his/her receipt for this booklet collected by you. Thereby acknowledge receipt of the candidate’s booklet for the examination stated above. ior upervisor/Invigi Date (WO. Na gE