FORM TP 2018198) bet wit our ansner sie 2. & [CANDIDATE — PLEASE NOTE! PRINT your name on the line below and return rest cove 02160010 MAYIJUNE 2018 do so may result in disqualiteaton. CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN ADVANCED PROFICIENCY EXAMINATION* NTREPRENEURSHIP UNIT 1 ~ Paper 01 I hour 30 minutes 14 JUNE 2018 (p. READ THE FOLLOWING INSTRUCTIONS CAREFULLY. This test consists of 45 items. You will have | hour and 30 minutes to answer them. In addition to this test booklet, you should have an answer sheet. Do not be concerned that the answer sheet provides spaces for more answers than there are items in this test Each item in this test has four suggested answers lettered (A), (B), (C), (D). Read each item you are about to answer and decide which choice is best. On your answer sheet, find the number which corresponds to your item and shade the space having the same letter as the answer you have chosen. Look at the sample item below. Sample lem One of the major challenges online retailers have is ‘Samp! \nswe (A) tracking sales results 7 (B) managing communication @2®GO@ (C) the capacity to enhance customer service (D) the ability to maintain sufficient stock levels ‘The best answer to this item is “the ability to maintain sufficient stock levels”, so (D) has been shaded If you want to change your answer, erase it completely before you fill in your new choice. When you are told to begin, turn the page and work as quickly and as carefully as you can. If you cannot answer an item, go on to the next one. You may return to that item later, ‘You may do any rough work in this booklet. Figures are not necessarily drawn to scale. You may use a silent, non-programmable calculator to answer items. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO. Copyright © 2017 Caribbean Examinations Council All rights reserved.The thought processes of intrapreneurial and entrepreneurial ventures are similar in characteristics, EXCEPT for their focus on (A) innovative th (B) restorative thinking (©) risk-taking thinking (D) creative thinking Which of the following characteristics of large organizations can easily give rise to a culture of intrapreneurship? (A) Heavily funded research and development department (B) Multiple levels of management (C)___ Rigid performance standards (D) Impersonal relationships Which of the following factorsisthe MAJOR difference between entrepreneurship and small business management? (A) Growth (B) Innovation (C) Size of business (D) Management style Drivers of contemporary entrepreneurship include 1. globalization I. technology UL stable demand (A) Land I! only (B) Land tit only (©) Mand Itt only (D) — L.tand tit 5. The owner of the Motley Group of companies has currently diversified his venture, This owner would be considered a (A) portfolio entrepreneur (B) nascent entrepreneur (C) novice entrepreneur (D) serial entrepreneur Which of the following characteristics BEST differentiates the entreprencurial-minded person from the “ordinary” manager? ‘The entreprencurial-minded person (A) thinks logically (B) isa calculated risk taker (C) possesses greater financial skills (D) tends to be conservative in the approach to problem-solving Which of the following actions is crucial if an entrepreneur wants to avoid pitfalls? (A) Focus on working hard. (B) Know the business in depth, (©) Possess a sense of humour. (D) Keep communication open. Sandra is running her own bed and breakfast accommodation. This operation meshes with her love for hosting guests and should eventually provide the personal freedom and independence she desires. Which category of entrepreneurs does Sandra BEST fit? (A) Nascent (B) Survival (©) Lifestyle (D) Part-time GO ON TO THE NEXT PAGE9. 10. 11 12 Which ofthe followingisabenefitofcultural diversity in an entrepreneurial venture? (A) More jobs in the workforce (B) Homogeneity in the workplace (©) Moreofthesametypesofemployees (D) A rich blend of perspectives and skills in the workplace Which of the following are challenges that ‘entrepreneurs normally face? 1 Enteringthe venture(s) with a limited experience I. Performing inadequate market research IIL, Focusing too much on the customer (A) Land IL only (B) Land IIL only (©) Mand ttt only (Om ‘An entrepreneurial venture failed because of poor process planning and inventory management. These types of failures are classified as (A) financial (B) marketing (©) operational (D) human resource management Which of the following terms BEST describes the level of operation at which a venture neither earns a profit nor incurs a loss? (A) Breakeven point (B) — Maximum level (©) Contribution margin (D) Fixed expense point 13, 14. 1s. 16, Which ofthe following factorsarekey drivers of cultural diversity in entrepreneurship? (A) Family and age (B) Gender and youth (©) Ethnicity and polities (D) Technology and religion The theory of entrepreneurship refutes several myths that are perceived to be characteristics of entrepreneurs. One such ‘myth is that successful entrepreneurs, (A) need only a great idea (B) manage people effectively (©) areinnovativeindeveloping solutions (D) use a creative process in idea generation Which of the following correctly describes entrepreneurs whoare focused, goal-oriented and driven by the vision of seeing heir dreams materialize? (A) Persistent-oriented (8) ©) ) ‘The method of generating ideas from a group, through interaction and discussion is called (A) group work (B) correspondence (©) brainstorming (D) _sereening ideas GO ON TO THE NEXT PAGE.17. 18, 19. 20. ‘An exploitable set of circumstances with 21. uncertain outcomes, requiring commitment of resources and involving exposure to risk refers to (A) anidea (B) —_anopportunity (©) abusiness concept (D) business venture Which of the following documents can ‘entrepreneurs prepare to help bridge the gap between an idea and a business plan? 22. (A) Patent (B) —Stategic plan (©) Marketing plan (D) Business concept Which of the following methods of idea ‘generation focuses on developing new ideas when the individuals are unaware of the problem being addressed? (A) Problem inventory (B) Gordon method (©) Delphi method 23. (D) Focus group Cherries Fried Chicken was able to receive favourable terms of payment to form a local meat depot and therefore pays the bills in 30 days. This scenario is an example of (A) ajoint venture (B) supplier financing (©) _ inventory financing 24 (D) _abusiness partnership In doing research for his new venture, Trevor realized that more people who live in the south of the country are interested in his service. Which of the following sources of opportunity is implied by this market research finding? (A) Anew technology (B) A management issue (C) Anemerging market (D) — Aregulatory change “At this stage, businesses need to create a legal structure, secure market access, raise equity and secure financing, and hire management/staff.” To which of the following stages in developing a business concept from an idea does the above statement refer? (A) Harvesting (B) Idea generation (©) Business operation (D) Business plan formulation New organizational structures, new distribution channels, and new production processes are BEST described as sources of (A) profit margins (B) business concepts (C) competitor challenges (D) marketing challenges To liquidate a business means to (A) maintain equity in the business (B) reduce the quality of its products (©) convertall assets ofthe business into cash (D) acquire other businesses in the industry GO ON TO THE NEXT PAGE,25, 26. 27, 28. 25 Which of the following is NOT an option for harvesting a business venture? (A) Amerger (B) Liquidation (C) Adopting an ESO plan (D) Installing a new board of directors Which of the following is an internal source of funding? (A) Equity (B) Leasing (©) Joint venture (D) Temporary staff Due to an amendment in a country’s legislation to curtail pollution, a company that produces bottled water developed a thinner, flexible plastic bottle which is easily discarded. This source of opportunity is considered to be the result of (A) new technology (B) —_ anemerging market (©) a regulatory change (D) _ademogeaphic trend A well-established business entity wants to obtain feedback from industry experts ‘which will help answer some major strategic questions. Which of the following methods should this company utilize? (A) The Gordon method (B) The Notebook method (©) The Focus group method (D) The Delphi methodology 29. 30, 31 Which of the following factors should an entrepreneur consider when implementing and managing a venture? (A) Achievement of performance goals (B) _ Developmentofthe business concept (©) Investment in personal assets (D) Monitoring of resource providers ‘Which ofthe following can posea significant opportunity for an entrepreneur selling vacation packages? (A) Intense competition ®) 1 population (cy) ‘New travel restrictions (D) High interest rate for borrowing Which of the following describe the importance ofinnovationinentrepreneurship? 1. Innovation is the vehicle through which the entrepreneurcreates new avenues for wealth generation. Il. Innovation provides a means for the entrepreneur to transform ideas into saleable solutions. IHL, Innovation enables the entrepreneur to target new customers and markets, (A) Land Ionly (B) Land Itt only (©) Mand tit only (D)— L.tand ttt GO ON TO THE NEXT PAGE32. 33, 34, 35, Mr Coral Draw, the owner of a graphic arts company, would like to ensure that his work isnot copied. Which of the following would be needed? (A) Licence (B) Copyright (©) Trademark (D) Industrial design A government that ison the threshold of new economic growth and sensesa lack of funding, for the renewed entrepreneurial spiritamong its population should, as part of its economic policy, (A) establish special state companies (8) ‘on increasingbanklendingrates (C) encourage greater use of personal savings (D) legislatively set up a unit offering start-up financing Using new components with different design concepts of a product line is known as (A) marketing skill (B) modular innovation (©) entrepreneurial talent (D) market segmentation ‘An ‘open innovation” can be defined as a (A) type of new car (B) new company (C) position that companies should use external ideas first (D) position that companies can use external and internal ideas 36. 37. 38, 39. ‘As a means of education, online learning is common. When this was first launched, what type of innovation would this have been? (A) Modular (B) Disruptive (©) Incremental (D) Architectural Six months ago, Johnson noticed that his clients were purchasing laptops. Today they are only purchasing notebooks and tablets. This is an example of a change in (A) trade laws (B) behaviours (©) political rutes (D) business models Which of the following types of innovation involvesaseries of small improvements toan existing product or product line that usually helps maintain or improve its competitive position over time? (A) Open (B) Disruptive (©) Incremental (D) Architectural Which of the following is NOT considered a means ofencouragingmicro level innovation? (A) Listening to the customer (B) Organizational structure (©) Employee recognition (D) Ethical practices GO ON TO THE NEXT PAGE40. 4 42, Which of the following is a ‘deal’ between 43. an inventor and the government in which the inventor isalloweda short-term monopoly in return for allowing the invention to be made public? (A) Licence (B) Copyright (C) Trademark (D) Trade secret Regal Airline’s introduction of low cost fares with no food and sparse entertainment found a ready market among travellers who did not mind the inconveniences. This caused a reversal in trends regarding how larger airlines presented their packages. 44. This source of innovation would be considered as (A) disruptive (B) need pull (C) deregulation (D) —aknowledge push 4s. ‘At which level within the organization is innovation BEST applied? (A) General (B) Formal (©) Macro (D) Micro END OF TEST A patent can be defined as (A) partners sharing risks and dividing rewards via business ventures (B) a legal monopoly that protects published orunpublished original work (C) the marketing practice of ereating a name, symbol or design that identifies and differentiates a product from another (D) _ anexclusive ight formaking, using or selling a concept or invention and excluding others from doing the same The process of creativity can be stifled by (A) seeing problems as challenges (B) expecting and accepting failure (C)__ beingafraidofmistakesand failures (D) finding usual connections between things Which of the following Intellectual Property Protection (IPP) would an entrepreneur use to legally protect a newly created process of manufacturing edible oil? (A) Trade secret (B) Franchise (C) Copyright (D) Branding IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST. 02160010/CAPE 2018