T 1 CARIBBEAN EXAMINATIONS COUNCIL ‘CARIBBEAN SECONDARY EDUCATION CERTIFICATE" EXAMINATION FILL IN ALL THE INFORMATION REQUESTED CLEARLY IN CAPITAL LETTERS, r7orz«0092 testcope| 0] 1 SUBJECT _ PRINCIPLES OF BUSINESS ~ Paper 032 PROFICIENCY __GENERAL RATION NUMBER ‘SCHOOLICENTRE NUMBER NAME OF SCHOOLICENTRE (CANDIDATE'S FULL NAME (FIRST, MIDDLE, LAST) DATE OF BIRTH SIGNATURE L 0 WER _| ‘0124003201101240032- GS ‘rest cope 01240032 ~ ] FORM TP 2017106 MAYAUNE 2017 CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE? EXAMINATION PRINCIPLES OF BUSINESS Paper 032 — General Proficiency T hour 15 minutes READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1, Answer ALL questions 2. Write your answers inthe spaces provided inthis answer booklet 3. Do NOT write in the margins You ae advised totake some to ead through the paper and plan your answers. 5. You may use a silent, non-programmable calculator to answer questions. 6, Ifyou need to rewrite any answer and thee is not enough space 10 do soon the ‘original page, you must use the extra lined page(s) provided atthe back of this booklet. Remember to draw a line through your original answer, 7. Ifyou 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 TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO. ac ‘Copyright © 2016 Caribbean Examinations Counell Alrights reserved no nO _! [_ ov2stosar 2017 Ir “ 4 INSTRUCTIONS: The following 6 and answer the questions t information fora businers plan. Read the case CASE STUDY K&S Sweet Delight After leaving culinary school, Kaycee and Shakira decided to form a partership. They pooled their resources to start and manage a business called K & S Sweet Delights. Giventheir training and expertise, they decided that, together with two assistants, they would be heavily involved in the process of making. cakes, pasties wind wnfextinery. The partners realized tha they would neve to hire persona tke care oftheir accounts and help with marketing their products ‘Complete the folowing business plan using information from the case study. OPERATIONAL PLAN 1. Nature of Business ‘State TWO advantages and ONE disadvantage of the type of business organization that Kaycee land Shakira decided to form. Advantages (Smarkas) {G0 ON TO THE NEXT PAGE 012404827 2017, L A _I| ‘0724003204r + 7 List the THREE functional areas of business operations that Kayeee and Shakira have identified 3. Management Functions and Responsibilities (@) State TWO management Functions thatthe owners would need to perform, @imars) (®) densify TWO groups to whieh the parmers Would be accountable, (maria) ‘Total 10 marks & 600V 70 THE NEXT PAGE o12a00s2 2017r MARKETING PLAN = While at culinary sehool, Kayeee and Shakira discovered that there was 2 great demand for the confectionery items that they offered cegularly for sale on campus. Pamily members and friends who ordered cupcakes, cheesecakes, binhéay cakes and even wedding cakes ~ would always compliment them on the quali, atractiveness and affordability oF theie products. Kayeee and Shakira observed too that many supermarkets as well 2s hotels on the island were interested in fining regular sources of supply for these tens. When they decided to form the business the two friends were convinced tha they ‘would have the owpetitve advantage. They believed that their use of local fruits and their distinctive Tair would set them spar from the competition and would make their preduets popular in both the local and tourist markets ket Research (2) Identify TWO methods that K&S Sweet Delights could use to obiain information about the potential market. @marks). (©) State TWO factors which led Kayove and Shakira to believe that thers would be a large market for ther products marks) S.— Tanget Markes Identify TWO potential customers which K & S Sweet Delights could target, marsh GOON TOTHE NEXT PAGE. a) 01240032/F 2017 Lr- 6. Consumer Behaviour 5 Outline TWO factors which could encourage consumers to purchase items from K & $ Sweet Delights. marks) 7. Promotional Ststegies () Outline TWO ways in which K.& S Sweet De Xs could promote its products Grmark) (b) Identify TWO media which K & S Sweet Delights could use to advertise its products. @ marks) GO ON TOTHE NEXT PAGE 0240032 2017, com | otcr 8. Pricing State TWO factors which Kaycee and Shakira should consider when pricing their products. 7 (@ marks) srbtion State TWO distribution channels which K & S Sweet Delights could use to distribute its produc ~@ marks) Total 20 marks FINANCIAL PLAN Since Kaycee and Shakira didnot have the money to purchase a business place. they decided to operate from rented premises, They plan to obtain loan from a commercial bank to purchase equipment forthe business end a van for deliveries. In addition to making payments on te loan they would also have to ‘budget for monthly expenses. 10. Souress and Uses of Finance (0) List TWO examples of capital goods thatthe bucinezs would require. @imaris) () Lise TWO forms of collateral which K & S$ Sweet Delighs could use es seeutity forthe bank oan, @ marks) GOON TO THE NEXT PAGE (012400320F 2017 L ‘OY es | 0724008208,a 2 L ‘LEE (©) Mentify TWO monthly expenses thatthe business i likely to ineur. @maris) ‘State ONE example of working capital that the business will require, mari Executive Summary ‘Writes summary ofthe business which includes information from the thre secons ofthe business plan, ‘Total 10 marks END OF TEST IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST. ‘012400320 2017 0124008200r “. 7 EXTRA SPACE, you use this extra page, you MUST write the question number clearly inthe box provided. Question No. | 12400527 2017 L es ar " 7 EXTRA SPACE Ifyou use this extra page, you MUST write the question number clearly inthe box provided. Question No. “012400378 2017 L a ‘orz4003211|— Re 7 Ifyou use this extra page, you MUST write the question number clearly inthe box provided. Question No. (01240082/F 2017, L ae zar be 7 rxraa space Ifyou use this extra page, you MUST write the question number clearly in the box provided. Question No. 12403206 2017 L ‘AE ‘orzaoa:213,r 7 EXTRA SPACE tyou use this extra page, you MUST write the question number clearly in the box provided. Question No. (012400827F 2017 |OE ‘orzaoos218CANDIDATE'S RECEIPT ' INSTRUCTIONS TO CANDIDATE: 1. Flin all the information requested clearly in capital letters. resrcove:[o]1]2]4[o]o[3]2 SUBJECT: PRINCIPLES OF BUSINESS ~ Paper 032 PROFICIENCY: GENERAL REGISTRATION NUMBER: FULLNAME: (BLOCK LETTERS) Signature: Date: 2. Ensure that this slip is detached by the Supervisor or Invigilator and given ta you when you 1nd in this booklet, 3. Keep it in a safe place until you have received your results, INSTRUCTION TO SUPERVISOR/INVIGILATO! ‘Sign the decaration below, detach this slip and hand it to the candidate as his/her receipt for this booklet collected by you, | hereby acknowledge receipt ofthe candidate's booklet forthe examination stated above, Signature: ‘Supervizor/invigilator