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FORM TP 2017271

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021330

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MAY/JUNE 2017

CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN ADVANCED PROFICIENCY EXAMINATION@

MANAGEMENT OF BUSINESS UNIT

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Paper02

2 hours 30 minutes

READ THE FOLLOWING INSTRUCTIONS CAREFULLY.

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This paper consists of THREE questions. Answer ALL questions.

2

Write your answers in the spaces provided in this booklet.

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You may use a silent, non-programmable calculator to answer questions

4

Do NOT write in the margins.

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6.

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. to draw a line through your original answer.

If you need to rewrite any answer

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 TURI\ THIS PAGE UNTIL YOU ARE TOLD TO DO Copyright @ 2016 Caribbean Examinations Council All rights reserved.

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BUSINESS AND ITS ENVIRONMBNT

Thomas is in the process of establishing Creative Fashions Ltd, a designer clothing fashion store in the tourist community of Greenshore Island. The Small Business Association of Greenshore Island suggests that Thomas decides whether his products would target the local or overseas market. Additionally, he should choose either a sole trader or a partnership form of business.

(a)

Define EACH of the following

(i)

Sole trader business

[2 marksl

(ii)

Partnership business

[2 marks]

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Explain THREE ways in which the Government of Greenshore Island could create an enabling environment to assist Thomas in targeting the overseas market for his products.

[9 marksl

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(c)

Discuss how EACH of the following stages in the decision-making process would assist Thomas in choosing whether to target the local or overseas market. Data collection

Formulation of alternative strategies Evaluation of results

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-8MODULE 2: MANAGEMENT OF PEOPLE

The EZ Canning Company has been experiencing declining profits steadily over the last 12 months. In addition, there have been poor interpersonal relationships among workers. The last staffsatisfaction survey showed thatworkers'motivation levels had fallen significantly. Bill Jones, the human resource manager, wants to change the negative work environment. He believes that teamwork will help to improve the profitability of the company.

2

(a)

Outline TWO differences between Hertzberg's hygiene theory and Maslow's hierarchy of needs theory.

[4 marksl

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Explain THREE ways in which teamwork can help to increase profits attheEZ Canning Company.

[9 marks]

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Discuss THREE ways in which EACH ofthe following communication strategies can improve

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interpersonal relationships.

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-12MODULE 3: BUSINESS FINANCE AND ING

3.

(a)

Define EACH of the following

(i)

Current assets

[2 marks]

(ii)

Budgetary control

[2 marks]

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Explain

Two ways in which

a business can benefit

from having a cash budget

[6 marksl

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Janet Palmer is the owner and manager of Beautiful Flowers. She was advised to prepare a balance sheet to hetp her with managing the business. In response, Janet prepared the

following document.

Beautiful Flowers Balance Sheet as at Decembe

r 31,2016

Current Liabilities Buildings

62 660

Debtors

28 000

90 660

Equity Capital

76 600

t67 260 Current Assets Creditors

26 200

Equipment

20 000

Bank Overdraft

24 720

70 920

Fixed Assets Stock

8 360

Cash

8 500

16 860

87 860

Use the information above to prepare a corrected balance sheet for Beautiful Flowers as at December 31,2016.

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

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