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CARIBBEAN EXAMINATIONS COUNCIL

CARIBBEAN SECONDARY EDUCATION CERTIFICATE®

EXAMINATION

( 07 JANUARY 2019 (p.m.) ) I lllllll Jllll 1lllll 9lllll alllll 1lllll 2lllll 4lllll alllll alllll31 1 1111121111

FILL IN ALL THE INFORMATION REQUESTED CLEARLY IN CAPITAL LETTERS.

TEST CODE I O I 1 I 2 I 41 0 I O I 3 I 2 I
co SUBJECT PRINCIPLES OF BUSINESS - Paper 032
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PROFICIENCY GENERAL

REGISTRATION NUMBERI ....._ _.__......___....__ ....______.__ __.__ __.__ _.___ __._______.

SCHOOL/CENTRE NUMBER

NAME OF SCHOOL/CENTRE

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CANDIDATE'S FULL NAME (FIRST, MIDDLE, LAST)

DATE OF BIRTH

SIGNATURE ----------------

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I IIIIII IIIII IIIII IIIII IIIII IIIII IIIU111111111111111 IIII IIII

 TEST CODE 01240032 I
FORM TP 2019032 JANUARY 2019

CARIBBEAN EXAMINATIONS COUNCIL

CARIBBEAN SECONDARY EDUCATION CERTIFICATE®

EXAMINATION

PRINCIPLES OF BUSINESS

Paper 032 - General Proficiency

1 hour 15 minutes

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READ THE FOLLOWING INSTRUCTIONS CAREFULLY.

1. Answer ALL questions.

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

3. Do NOT write in the margins.

4. You are advised to take some time to read through the paper and plan your answers.

5. 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.

7. If you use the extra page(s) you MUST write the question number clearly in
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the question part beside the answer.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.

Copyright© 2018 Caribbean Examinations Council

All rights reserved.

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 -4-

INSTRUCTIONS: The following case study contains information for a business plan. Read the
case and answer the questions that follow.

CASE STUDY

Enviro Compost

SECTION A

Zoe Bland and her two friends live in the same rural fanning community. They are all graduates of the local
university where they pursued the Bachelor of Horticulture programme and have been working in different
occupations for the past nine years. They have always dreamed of not only owning a business, but doing
so in their field of study. To better prepare themselves for this change, they enroll in an entrepreneurial
business course. Their plan is to lease a piece of land in their community and set up a vegetable compost-
fertilizer business. They will process and sell the product locally and eventually expand to the overseas
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market. As demand for the product increases, they will obtain a loan to expand the business, including
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OPERATIONAL PLAN -:-:c
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1. Nature and Type of Business :::i

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 -5-

2. Management and Functions of Business

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(a) Outline TWO functional areas of the proposed business .
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3. Selection of Appropriate Labour

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 - 6 -

SECTION B

After conducting a market research, the friends are convinced that the business will succeed. They had
planned to use a 'widespread and aggressive' promotional strategy including the telephone and electronic
means of communication, flyers, television and radio commercials. The results of the market survey
revealed, however, that their potential customers prefer trade shows and demonstrations. The friends
realize that they have to be efficient in ensuring that they get steady supplies ofraw materials and packaging
inputs. The results of the market survey also suggested that they should not concentrate all their efforts
in the production of a single product line, but that they should diversify into one or two other areas.

MARKETING PLAN

4. Market Research
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 -7-

5. Production and Diversification

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(a) Describe TWO ways in which the firm could ensure that it will have a steady supply of
raw materials to produce its product.

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 -8-

6. Promotional Methods

(a) Identify TWO electronic means which Enviro Compost could use to promote the
business.

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(2 marks)

(b) State TWO advantages and TWO disadvantages of using the telephone to promote the
business.

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 -9-

7. Marketing Strategy
i~~ti (a) Explain why Enviro Compost's marketing strategy can be described as 'widespread and

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(b) Suggest TWO reasons why potential customers preferred trade shows and
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 - 10 -

SECTION C

The friends do not have sufficient personal funds to start the business and will rely on external sources
to finance the gap. It is necessary that they have collateral to obtain loans and a proper business plan to
convince potential investors that the firm will succeed. The government is interested in funding innovative
entrepreneurs and the friends also have the backing of the local manufacturers' association. The fact that ---h
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employment generated by the business will help to reduce the level of unemployment in the country puts ·:-~
them in a favourable position to obtain a government subsidy and extra funding. The friends expect that
Enviro Compost will improve the standard ofliving and quality oflife of persons in their rural community.

FINANCIALPLAN

8. Sources of Capital
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to obtain funding for the business. J
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 - 11 -

9. Economic Impact
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 - 12 -

10. Executive Summary -:-~

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In ONE paragraph, summarize the overall business operation, including information from the
THREE main areas of the business plan.

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EXTRA SPACE
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EXTRA SPACE

If you use this extra page, you MUST write the question number clearly in the box provided.

Question No. D :J
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I IIIII IIIII IIIII I III IIIII IIII IIIII I I I I II I III IIII IIII
 CANDIDATE'S RECEIPT

INSTRUCTIONS TO CANDIDATE:

1. Fill in all the information requested clearly in capital letters.

TEST CODE: I OI 12 I4IOIOI 31 21

SUBJECT: PRINCIPLES OF BUSINESS - Paper 032

PROFICIENCY: GENERAL

REGISTRATION NUMBER:

co FULL NAME: _
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(BLOCK LETTERS)

Signature: -----------------------------

Date: ------------------------------~

2. Ensure that this slip is detached by the Supervisor or Invigilator and given to you when you
hand in 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 candidate as his/her receipt for this booklet
collected by you.
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I hereby acknowledge receipt of the candidate's booklet for the examination stated above.

Signature: _
Supervisor/Invigilator

Date: -------------~

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