TEST CODE FORM TP 2017198 CARIBBEAN 02160020 MAY/JUNE 2017 E XAM I NAT I O N S COUNCIL CARIBBEAN ADVANCED PROFICIENCY EXAMINATION® ENTREPRENEURSHIP ENTREPRENEURIAL THEORY UNIT 1 – Paper 02 2 hours and 45 minutes READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1. This paper consists of SIX mini-case scenarios, TWO from EACH module. Answer ALL questions. 2. Write your answers in the spaces provided in this booklet. 3. Do NOT write in the margins. 4. 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. 5. 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 TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO. Copyright © 2016 Caribbean Examinations Council All rights reserved. 02160020/CAPE 2017 INSTRUCTION: Read EACH mini-case and answer the questions that follow. MODULE 1: ENTREPRENEURIAL MINDSET Case 1: Life’s Journey Ikeela, a social worker, sought employment overseas as it was difficult to find work in her homeland. Her desire was to help herself and family, especially her mother. A friend told her of opportunities in Canada. She went online, applied and got a job catering to people with developmental disabilities. Ikeela expected challenges, given the cultural differences. However, she persisted and was optimistic that things would work out well, if she worked hard. She developed a clear strategy as to what she would do. She knew that working in Canada would not allow her to fulfil her broader vision of owning a social enterprise which would take care of disadvantaged youths. Her plan was to use this opportunity to get a better understanding of the business area, develop a useful business plan, and learn how to manage and work with people of diverse backgrounds in the service sector. (a) Using evidence from the case, explain why Ikeela would be considered a strategic thinker. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. [3 marks] (b) Identify from the case THREE other characteristics of an entrepreneur displayed by Ikeela. 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[3 marks] 02160020/CAPE 2017 GO ON TO THE NEXT PAGE DO NOT WRITE IN THIS AREA 1. DO NOT WRITE IN THIS AREA -4- DO NOT WRITE IN THIS AREA -5(c) Explain any THREE factors that Ikeela should consider if she wants to be successful in her business. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. 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DO NOT WRITE IN THIS AREA .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. [9 marks] Total 15 marks 02160020/CAPE 2017 GO ON TO THE NEXT PAGE Case 2: An Agro-preneur’s (Agricultural Entrepreneur) Dream Damien always wanted to own an agriculture enterprise. He thought that he should go to school to understand how to farm and start the venture upon graduating. While at school, he realized that he had to do courses in entrepreneurship and he questioned their relevance. He was taught that he must know the business in depth, understand how to operate financials and manage people, develop business plans and, most importantly, know his own strengths and weaknesses. He had initially thought that being an entrepreneur would only require knowledge on how to plant and reap. He believed that success was primarily determined by how new and good the idea is, luck, money to start the venture, and the ability to take the risk to start the business even in the face of challenges. (a) From the case, explain THREE myths of entrepreneurship that Damien should be aware of when carrying out his venture. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. 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[9 marks] 02160020/CAPE 2017 GO ON TO THE NEXT PAGE DO NOT WRITE IN THIS AREA 2. DO NOT WRITE IN THIS AREA -6- DO NOT WRITE IN THIS AREA -7(b) List FOUR types of entrepreneurs. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. (c) Outline the type of entrepreneur which would BEST describe Damien if he started a business immediately after graduation. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. [2 marks] Total 15 marks DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA .............................................................................................................................................. [4 marks] 02160020/CAPE 2017 GO ON TO THE NEXT PAGE MODULE 2: THE ENTREPRENEURIAL PROCESS Case 3: Food Security Pedro, a Brazilian, migrated to Guyana to try and fulfil his dream of owning and operating a freshwater fish farm. Although he had some of the resources, he was in need of land, marketing and sales expertise and access to distribution channels. Even though he has some experience managing farms in Brazil, he knew that if he could access production facilities and the requisite licences, he could get the financing to operationalize the venture. He planned to leverage the resources he had to access capital from internal or external sources. With these required resources, Pedro knew that he would be much closer to fulfilling his dream. (a) Explain why it is important for Pedro to secure marketing, sales and management expertise. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. 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[9 marks] 02160020/CAPE 2017 GO ON TO THE NEXT PAGE DO NOT WRITE IN THIS AREA 3. DO NOT WRITE IN THIS AREA -8- DO NOT WRITE IN THIS AREA -9(b) Outline from the case the TWO sources from which Pedro can access capital for his farm. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. (c) Identify TWO sources of business concepts that Pedro can use to help him focus on what the business will offer in the fishing industry. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. [2 marks] Total 15 marks DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA .............................................................................................................................................. [4 marks] 02160020/CAPE 2017 GO ON TO THE NEXT PAGE Case 4: From Mona to Kingstown Villete is a graduate of the College of Science and Innovative Technology and holds a BSc in Chemistry. After completing her studies, she returned home to St Vincent to establish a soap manufacturing company, similar to those she saw in Kingston, Jamaica. She noticed that the age distribution of the St Vincent population was changing. Additionally, with new industry guidelines, there would be new demands for goods and services that fit within these guidelines. There were also now more efficient ways of making products and delivering services. She knew that in implementing the venture she would need to pay back financiers, reinvest and subsequently expand the business. These priorities, she thought, would require consistent monitoring and evaluation of the business. (a) Identify from the case TWO sources of opportunities for this venture. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. [2 marks] (b) Outline TWO sources of opportunities which are not mentioned in the case. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. 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DO NOT WRITE IN THIS AREA - 10 - DO NOT WRITE IN THIS AREA - 11 (c) Explain why Villete would think it was important to pay back resource providers, reinvest in the venture and eventually expand and grow the business. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. 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[9 marks] Total 15 marks 02160020/CAPE 2017 GO ON TO THE NEXT PAGE MODULE 3: CREATIVITY AND INNOVATION Case 5: Leveraging Innovation Prakash was considered to be very innovative from the time he was in high school, so he established a consultancy which supports businesses with innovation challenges. When clients ask him for advice on sources of innovation, he usually tells them to look at how consumption patterns are changing, new ways of doing things and whether there are changing restrictions on how to do things. He argues, however, that in order for innovation to thrive, it needs to be nurtured and managed within the venture. This means providing incentives for innovation, developing a good internal policy that supports innovation, and promoting an organizational culture of innovation. (a) State THREE sources of innovation which are implied in the case. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. [3 marks] 02160020/CAPE 2017 GO ON TO THE NEXT PAGE DO NOT WRITE IN THIS AREA .............................................................................................................................................. DO NOT WRITE IN THIS AREA 5. DO NOT WRITE IN THIS AREA - 12 - DO NOT WRITE IN THIS AREA - 13 (b) Explain why EACH of the THREE sources stated in (a) are considered sources of innovation. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. 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[8 marks] 02160020/CAPE 2017 GO ON TO THE NEXT PAGE (c) Outline the importance of EACH of the following: Providing incentives for innovation .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. 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[4 marks] DO NOT WRITE IN THIS AREA Implementing good internal policy 02160020/CAPE 2017 GO ON TO THE NEXT PAGE DO NOT WRITE IN THIS AREA Total 15 marks DO NOT WRITE IN THIS AREA - 15 Case 6: Safety First Freida always dreamt of making a difference in the lives of less fortunate people through innovations. Her idea was to develop innovations that radically shift the way people do things or they change things one step at a time. She knew, however, that innovations should be protected. She thus sought advice from the Intellectual Property Office on the options that are available to her. She was advised that depending on the kind of innovation, there were several approaches that she could explore. 6. (a) From the case, outline the TWO core innovation concepts that Freida was most interested in applying. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. [4 marks] DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA .............................................................................................................................................. 02160020/CAPE 2017 GO ON TO THE NEXT PAGE (b) Explain the terms ‘branding’, ‘copyrights’ and ‘patents’. Branding: ............................................................................................................................ .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. 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Patents: ............................................................................................................................... DO NOT WRITE IN THIS AREA Copyrights: .......................................................................................................................... .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. [9 marks] 02160020/CAPE 2017 GO ON TO THE NEXT PAGE DO NOT WRITE IN THIS AREA .............................................................................................................................................. (c) State TWO other ways NOT mentioned in (b) by which Freida could protect her ideas or innovations. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. .............................................................................................................................................. [2 marks] Total 15 marks DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA - 17 - END OF TEST IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST. 02160020/CAPE 2017
