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2014(2013 SPEC)
TEST CODE
02224010
SPEC 2013/02224010
CARIBBEAN EXAMINATIONS COUNCIL
CARIBBEAN ADVANCED PROFICIENCY EXAMINATION®
ENTREPRENEURSHIP
SPECIMEN PAPER
Unit 2 Paper 01
1 hour 30 minutes
READ THE FOLLOWING INSTRUCTIONS CAREFULLY.
1.
This specimen paper consists of 45 items. You will have 1hour 30 minutes to answer them.
2.
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.
3.
Look at the sample item below.
Sample Item
One of the major challenges online retailers have is
Sample Answer
(A)
(B)
(C)
(D)
tracking sales results
managing communication
the capacity to enhance customer service
the ability to maintain sufficient stock levels
A
B
C
D
The best answer to this item is “the ability to maintain sufficient stock levels,” so answer space
(D) has been shaded.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.
Copyright © 2012 Caribbean Examinations Council
All rights reserved.
02224010/SPEC 2013
1.
Which of the following may be
considered an activity that falls under
the corporate social responsibility of a
lumber company?
(A)
(B)
(C)
(D)
2.
3.
(A)
(B)
(C)
(D)
6.
a franchise
a partnership
an undertaking
limited liability
COSSH
ISO standards
Employee Handbook
Economic Partnership Agreement
Which of the following organizations
would MOST likely provide financial
and technical assistance to implement a
business idea?
(A)
(B)
(C)
(D)
IPO
Banks
Angel investors
Business development agencies
Timothy is seeking direction in deciding
the BEST way to organize his
entrepreneurial venture. His first
decision is to determine the form of
legal ownership.
Which of the following aspects of the
venture has direct bearing on legal
ownership?
Growth
Liability
Taxation
Profitability
Hawa is the owner of a female hairstyling salon. Pasha is an entrepreneur
managing his own barber shop. Due to
individual challenges they are facing,
the two have decided to merge their
businesses to take advantage of their
individual expertise.
Which of the following forms of
business would be MOST suitable for
the new venture?
Which of the following contains
guidelines for regulating process and
service standards irrespective of the type
of business?
(A)
(B)
(C)
(D)
4.
Cash
donations
towards
reforestation
Supporting company fun-day
celebrations
Increasing workers‟ salaries and
wages
Spearheading the growth of the
company
When an existing company grants a
licence to another company to operate
using the former‟s name and design to
provide the same service, the
arrangement is called
(A)
(B)
(C)
(D)
5.
(A)
(B)
(C)
(D)
7.
Franchise
Partnership
Corporation
Non-governmental organization
Max is a professional accountant who
has decided to go into the preparation of
fast food for sale. His business adviser
has told him to purchase yellow cones to
be placed on wet floors in the restaurant.
Which of the following regulations
covers this advice?
(A)
(B)
(C)
(D)
Tax and profits
Employment law
Registration of business
Occupational health and safety
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02224010/SPEC 2013
3
8.
Which of the following types of
business has unlimited life and allows
for the easy transferability of ownership
interest?
12.
Which of the following may be
considered unethical behaviour on the
part of a dairy product venture owner?
(A)
(A)
(B)
(C)
(D)
Partnership
Corporation
Sole proprietorship
Limited liability partnership
(B)
(C)
(D)
9.
A Caribbean government recently asked
an airline to obtain a licence before
operating in that territory. This means
the airline was being asked to satisfy
(A)
(B)
(C)
(D)
10.
13.
a social obligation
a legal requirement
an ethical obligation
a corporate social responsibility
The Corporate
described as the
Charter
is
(B)
(C)
(D)
basic legal declaration contained
in the bylaws
legal document that establishes
the corporation
set of rules and procedures
established to govern the daily
operations of the corporation
document that governs the
relationship between the
workers of the corporation and
management
Which of the following courses of
action is available to the regulatory
agency in a country if a registered
company fails to pay its taxes?
(A)
(B)
(C)
(D)
patent
domain
trademark
copyright
BEST
Prosecute the company
Arrest
the
company‟s
employees
Cut the company‟s source of
raw material supply
Ask buyers to boycott the
company‟s products
Which of the following is a feature of a
„lifestyle‟ venture?
(A)
(B)
(C)
(D)
15.
11.
The legal protection of a word, name,
phrase or a symbol granted to a venture
is known as a
(A)
(B)
(C)
(D)
14.
(A)
Giving cows minimum medical
attention
Milking cows only when they
are healthy
Allowing cows to graze on
clean, authorized grass
Implementing medical advice
given by veterinary officers
It is fast growing.
It has great opportunity to serve
customers.
It exists primarily to support the
owner‟s standard of living.
It makes research and
development a priority.
A company has decided to pay the
college fees of 50 children of poor
families living within its local
community. This is an example of the
company‟s
(A)
(B)
(C)
(D)
legal obligation
mandatory duties
ethical behaviour
corporate social responsibility
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02224010/SPEC 2013
4
16.
The primary purpose of a business plan
is to
(A)
(B)
(C)
(D)
17.
21.
clarify the venture‟s vision
clarify the venture‟s mission
determine an exit strategy
establish the venture‟s
feasibility
(A)
(B)
(C)
(D)
22.
Cost
Price
Value prosition
Business plan
23.
Financial
Marketing
Operations
Management
24.
20.
SWOT analysis
PEST analysis
benchmarking
financial ratio analysis
The potential success of an
entrepreneurial venture is determined
through a
(A)
(B)
(C)
(D)
feasibility study
vision statement
mission statement
profit and loss statement
Gift
Loan
Sales
Grant
Which of the following is a KEY
component of a business plan?
(A)
(B)
(C)
(D)
25.
start-up
buck-up
cash strap
break even
Which of the following is NOT a source
of funding for a new venture?
(A)
(B)
(C)
(D)
The process by which the strengths and
opportunities for an existing venture are
identified is known as
(A)
(B)
(C)
(D)
The point at which a venture is neither
making profits nor losses is described by
the term
(A)
(B)
(C)
(D)
In which of the following sections of a
business plan would you find
promotional resource?
(A)
(B)
(C)
(D)
19.
to determine unpaid debts
to support the business model
for the benefit of shareholders
because it is one of the
documents required to register
the venture
Which of the following is a key
component of a business model?
(A)
(B)
(C)
(D)
18.
The BEST reason for preparing a
statement of cash flow for a new venture
is
Venture logo
SWOT analysis
Executive summary
Organizational chart
The business model for a new venture
must
(A)
(B)
(C)
(D)
show the source of funding
show the top managers of the
venture
include a contract between
management and workers
state what will be done
differently to create value
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02224010/SPEC 2013
5
26.
The financial statement that shows the
value of an organization‟s assets,
liabilities and owner‟s equity is the
(A)
(B)
(C)
(D)
27.
28.
Which of the following is NOT a key
aspect of the feasibility analysis for a
new venture?
(A)
(B)
(C)
(D)
31.
Cash
Inventory
Raw materials
Fixed deposits
(B)
(C)
(D)
develop a great advertising
campaign
have a strong website to push
the product
adopt a push rather than pull
promotional concept
develop products that deliver
superior value to customers
(A)
(B)
(C)
(D)
32.
Time
Culture
Finance
Employment
The MOST appropriate form of
financing during the rapid growth stage
of a venture is
To create a successful, new product a
company MUST understand the
customers, the market, competitors and
(A)
29.
cash budget
balance sheet
income statement
cash flow statement
Which of the following is a saving and
investment option?
(A)
(B)
(C)
(D)
30.
first-round financing
start-up or seed financing
public and seasoned financing
second-round or mezzanine
financing
During which stage of a venture‟s life
cycle may first-round external financing
be utilized?
(A)
(B)
(C)
(D)
Survival
Maturity
Start-up
Rapid growth
Flawed
Patrick is a novice entrepreneur. He has
to prepare a business model for his
business plan. Which of the following
components of the business model will
determine for whom he has to create
value?
(A)
(B)
(C)
(D)
Beneficiary
Value proposition
Income generation
Product differentiation
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02224010/SPEC 2013
6
Items 33 - 34 refer to the following financial
valuation methods.
(A)
(B)
(C)
(D)
Income capitalization
Book value (balance sheet
value)
Price earning (multiple earnings
value)
Discounted future earnings
(discounted cash flow)
35.
(A)
(B)
(C)
(D)
36.
In answering items 33-34, match each item with
one of the options above. Each option may be
used once, more than once or not at all.
33.
Which valuation method may become
subjective if the shares for a company
are NOT traded on the stock market? C
Which method is NOT an income
valuation method? A
$492 592
$1 952 352
$2 866 592
$3 497 152
Total assets - Total liabilities
3,497,152 - 1,544,800 = 1,952,352
What is the price earnings multiple of
Hodge Company in 2012?
(A)
(B)
(C)
(D)
37.
34.
Using the book value approach, what is
the value of Hodge Company in 2012?
2
8
10
12
P/E ratio = Share price / EPS
= 12.17/1.014 = 12
The process of buying and selling via
the internet is called
(A)
(B)
(C)
(D)
E-commerce
E-marketing
E-banking
E-communication
Items 35–36 refer to the following information.
Hodge Company hired a financial analyst for the
company. The financial analyst was provided
with the following financial data.
Balance Sheet
2012
2011
Current Assets
Net Fixed Assets
Total Assets
Current Liabilities
Long-term Debt
Other Data
No. of shares
EPS
DPS
Stock Price
$2 680 112
$817 040
$3 497 152
$1 144 800
$400 000
$1 926 802
$939 790
$2 866 592
$1 650 568
$723 432
250 000
$1.014
$0.220
$12.17
100 000
-$1.602
$0.110
$2.25
38.
Which of the following products are
NOT suitable for online selling?
(A)
(B)
(C)
(D)
39.
CDs
Books
Fresh vegetables
Financial services
Which of the following statements is
NOT a feature of business ventures?
(A)
(B)
(C)
(D)
Ventures are sown.
Ventures can be grown.
Ventures are harvested.
Ventures can be exported.
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02224010/SPEC 2013
7
40.
At which stage of the venture life cycle
does the entrepreneur create the
capacity to possess the product or
service?
(A)
(B)
(C)
(D)
41.
42.
(A)
(B)
(C)
(D)
(D)
44.
45.
growth
decline
start-up
business stabilization
One reason for valuing a venture fairly
accurately is to
(A)
(B)
(C)
(D)
Book value
Price earnings
Payback period
Discounted future earnings
Focusing on market needs
Minimizing the use of emails
De-emphasizing strategic
alliances
Focusing on corporate social
responsibility
The stage in the venture life cycle where
the entrepreneur can consider entering
other target markets is described as
(A)
(B)
(C)
(D)
Location
Nationality
Bandwidth
Data mining
Which of the following venture
valuation methods takes the time value
of money into account?
Which of the following strategies can
promote success in E-commerce?
(A)
(B)
(C)
Start-up
Innovation
Venture growth
New venture development
Which of the following is a factor to
consider before launching into
E-commerce?
(A)
(B)
(C)
(D)
43.
promote goodwill
avoid under-harvesting
enhance accountability
avoid customer complaints
END OF TEST
IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.
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02224010/SPEC 2013
2015
1. In a partnership venture, the partner
share the management, profits, and debts
of their business based on the terms of
their
(A)
(B)
(C)
(D)
Sole trading
Partnership
State enterprise
Limited liability company
3. One advantage of the franchise approach
to business is that the entrepreneur gets
more
(A)
(B)
(C)
(D)
(A) Maximize the returns of
shareholders
(B) Focus on the firm’s core
competencies
(C) Build an internal collaboration
network
(D) Be willing to collaborate with
customers and competitors
Friendship or relationship
Capital contribution
Deed of partnership
By laws
2. In which of the following ventures does
the entrepreneur face the LEAST risk?
(A)
(B)
(C)
(D)
6. An entrepreneur wishing to adopt open
innovation must
Profit
Guidance
Capital
Partners
7. In business, the ability to find and apply
creative solutions to problem and create
opportunities is termed
(A)
(B)
(C)
(D)
8. Kyle owns a beverage company which
produces only juices. He has decided to
expand his product offering and
introduce soft drinks but does not have
the knowledge necessary for executive.
Which of the following actions would
MOST likely assist him in quick,
successful implementation?
4. Reduced profit due to payment of
royalty fees can be a major
DISADVANTAGE of this type of
venture.
(A)
(B)
(C)
(D)
(A)
(B)
(C)
(D)
(A) Registering his intellectual
property
(B) Utilizing open innovation
techniques
(C) Being a good environmental
steward
(D) Implementing the occupational
health and safety laws
Franchise
Sole trader
Private company
State-owned enterprise
5. Which of the following is NOT a
consideration when choosing the legal
format of a new
entrepreneurial venture.
Tax consideration
Liability questions
Hiring and firing policies
Growth and continuity issues
Innovation
Brainstorming
Creative thinking
Entrepreneurship
9.
The process of setting up a corporation,
in accordance with the laws of the
country in which the business is located,
is referred to as
(A)
(B)
(C)
(D)
Incorporation
Limited liability
Going concern
Obligation
10. Jewels is about to launch her own
scented candles business, Precious
Scents. Her legal advisor has told her
that she must first conduct a name
search
The requirements is in keeping with
(A)
(B)
(C)
(D)
Tax laws
Labour laws
Registration of a venture
Intellectual property rights
11. In the contact of venture operations, a
whistle-blower is a person who
(A) Reports illegal and unethical
behavior
(B) Speaks loudly during the decisionmaking process
(C) Contributes capital but is inactive
in managing the business
(D) Seeks new innovative ways of
doing things within a business
12. A private hotel chain has decided to
allow the local community access to part
of the beach in front of its property at no
cost
The hotel is fulfilling
(A)
(B)
(C)
(D)
A political obligation
An environmental obligation
An economic responsibility
A social responsibility
13. A business had just received permission
from the environment agency to begin
construction of a new plant. However,
residents claim that their farms will be
lost the management has decided to go
ahead with construction despite the
residents’ concerns.
Management’s action may be described
as
(A)
(B)
(C)
(D)
legal and ethical
illegal and ethical
legal and unethical
illegal and unethical
14. Which of the following is
distinguishing feature of the social
entrepreneur?
(A) In business to create a profit
(B) Takes environmental objectives
into considerations
(C) Highly inclined towards
socializing and networking
(D) Repeatedly starts and manages
several companies at the same time
15. ACME Inc. has offered the purchasing
agent at a company a sizable monetary
incentive if the company awards it a
very lucrative contract for which it is
tendering. What would be the MOST
ethical option for the purchasing agent
to choose?
(A) Discuss the situation with his
immediate boss.
(B) Accept the offer as long as
confidentiality can be guaranteed.
(C) Decline the offer and follow the
established procedures for tendering
(D) Negotiate with ACME for all
expenses paid vacation instead
16. Which of the following involves
collecting first-hand data analyzing?
(A)
(B)
(C)
(D)
Second inquiry
Product analysis
Primary research
Feasibility analysis
17. A target can be defined as
(A) A place where buyers and sellers
meet
(B) The set of actual and potential
buyers for any good or service
(C) The set of companies producing
the same product
(D) The total number of persons
buying the product
18. Which of the following feasibility
analysis assess whether or not a new
business venture will provide a return on
investment?
(A)
(B)
(C)
(D)
Technical
Marketing
Industry
Financial
19. The final step in a comprehensive
feasibility analysis is
(A)
(B)
(C)
(D)
Industry feasibility
Financial feasibility
Marketing feasibility
Operational feasibility
20. Entrepreneurs are involved in various
types of business but in each case, the
MAIN concern is to make money by
providing customers with
(A)
(B)
(C)
(D)
Goods
Service
Value
Discounts
21. Which section of a business plan
provides information about staffing?
(A)
(B)
(C)
(D)
Finance
Marketing
Operations
Management
22. The MAIN purpose of the executive
summary of a business plan is to
(A) Describe the financial viability of
the venture
(B) Highlight
the
skills
and
competencies of the entrepreneur
(C) Provide and over view of the main
aspects of the plan and its purpose
(D) Highlight
the
marketing
challenging associated with the plan
23. E-Games LTD, a recent establish firm,
is seeking finance to develop and market
indigenous Caribbean card games
online. The MOST appropriate source of
financing of E-FAMES LTD would be
(A)
(B)
(C)
(D)
Tax incentives
Venture Capital
Bank overdraft
Short-term bank loan
24. Which of the following is a form of
equity financing
(A)
(B)
(C)
(D)
A debenture
Issuing of bonds
A mortgage
Personal funds
25. Surplus plus cash reinvested in the
business may be classified as
(A)
(B)
(C)
(D)
Equity financing
Long-term debt finance
Short-term debt finance
Owner contributed finance
26. What is the significant of break even
analysis to a promoter who plans to host
a Rihanna concert in Saint Lucia?
28. Which section of the business plan gives
information about competitors?
(A)
(B)
(C)
(D)
(A) It provides a basis for determining
the promotional strategy for the
concert.
(B) It allows the promoter to set a
ticket selling price to make a given
profit.
(C) It allows the promoter to prepare a
projection of the concert cash flow.
(D) The promoter can identify all
possible sources of disagreement
with patron.
29. Which of the following is the best
definition of a firm’s valve proposition?
(A) The product offered
(B) The product and service provided
(C) The satisfaction of customer needs
and the expected profit managing
(D) The product and service required
to satisfy customer needs
27. Which of the following statements
answers the questions “Where will the
money come from?” and “Where will it
go?”
(A)
(B)
(C)
(D)
Marketing
Operations
Financial
Management
30. Short-term debt obligation backed by
the government with a maturity of less
than one year is known as
Business Sheet
Income Statement
Cash Flow Statement
Expenses Statement
(A)
(B)
(C)
(D)
Bond
Stock
Treasury bill
Fixed Deposit
31. Generally, the stage of the venture life cycle in correct order is
(A) Start-up activities
new venture development
stabilization innovation/decline
venture growth
(B) New venture development
start-up activities
stabilization
innovation/decline
(C) Start-up activities
venture growth
stabilization
innovation/decline
(D) New venture development
innovation/decline
business
venture growth
new venture development
venture growth
start-up activities
business
business
business stabilization
32. In which of the following life-cycle
stages of a business would a company
attempt to complement is current
offerings
by
developing
new
products/services?
(A)
(B)
(C)
(D)
Growth
Start-up
Business stabilization
Innovation
33. Mr Ali is considered purchasing an
existing restaurant. He should have the
business valued in order to determined
the
(A)
(B)
(C)
(D)
Size of the work force
Investment capital needed
Size of the needs provided
Level of corporation tax to be paid
34. A critical part of preparing for an initial
public offering is establishing a good
(A)
(B)
(C)
(D)
Stock count
Valuation
Profit
Asset
35. Which of the following situations will
require the valuation of a start-up?
(A) The exit venture capitalist
(B) The desire to assess profitability
(C) The
evaluation
of
capital
expenditure
(D) Application of overdraft funding
from the bank
36. When considering an investment, which
method compares the stock market price
of the shares with the profits being
generated?
(A)
(B)
(C)
(D)
Price-earning analysis
Discounted cash flow
Asset book value
Balanced sheet analysis
37. An entrepreneur can value his/her
business based on the current value of
future cash flows. This valuation
method is known as
(A)
(B)
(C)
(D)
Net book value
Initial public offering
Multiple earnings value
Discounted cash flow
38. The net assets per share is one method
of valuing a start-up. What is the BEST
value to use when calculating net assets?
(A)
(B)
(C)
(D)
Fair value
Book value
Original cost
Carrying value
39. One MAJOR benefit of establishing a
website is
(A) Access to other social media
(B) An awareness of competitors’
offerings
(C) Protection of the company’s brand
name
(D) Increased capacity to enhance
customer service
40. Which of the following statements is
considered a myth about e-commerce?
(A)
(B)
(C)
(D)
Accessibility to wider audience
Setting up site is very difficult
Privacy is not an important issue
Customer service is of key
importance
41. Facebook and eBay offer businesses a
presence to sell goods and service for a
small subscription fee. Which approach
to e-commerce is described here?
(A)
(B)
(C)
(D)
Store front
Shopping mall
Private initiate
Internet service provider
42. Shop For Less Supermarket is
considering using customer loyalty
cards to improve sales. Additionally, the
owner would like to track customer
spending based on what customers buy
with their cards. This technique is
known as
(A)
(B)
(C)
(D)
Data mining
Overharvesting
Illegal data gathering
Community networking
44. As in the brick-and-mortar model, a
frequent-buyer programme can help an
e-commerce initiative establish
(A)
(B)
(C)
(D)
Privacy
Loyalty
Security
Flexibility
43. The decision to go into e-commerce
should be pursued ONLY after
(A) Suitably trained personnel can be
hired
(B) Web-based sales begin to erode
traditional sales
(C) Indentifying a suitable firm to host
the website
(D) A strategy to integrate the web into
overall strategy is developed
45. Many attempts at e-commerce fail
because of the belief that
(A) Technology is all that is needed
(B) The most important factor is
strategy
(C) Too much security is better than
too little
(D) Online sales can lead o new growth
opportunities
END OF TEST
2016
-2If a business is listed on the stock exchange
it is a
(A)
(B)
( C)
(D)
6.
private company
limited partnership
limited liability company
nongovernmental organization
An entrepreneur wishing to adopt open
innovation must
(A)
(B)
(C)
(D)
2.
3.
Which of the following are characteristics of
limited liability companies?
I.
II.
III.
They have unlimited liability.
They are a separate legal entity.
Taxes paid are based on profit.
(A)
(B)
(C)
(D)
I and II only
I and lII only
II and III only
I, II and Ill
One advantage of the franchise approach to
business is that the entrepreneur gets more
(A)
(B)
(C)
(D)
4.
8.
profit
guidance
capital
partners
profits
structure
behaviour
perfonnance
A statement ofspecific rules or standards for a
variety ofsituations which guides employees'
behaviour is referred to as a
(A)
(B)
(C)
(D)
9.
(A)
(B)
(C)
(D)
ISO Standards
Duty of Care
HACCP
OSJ-:r A
02260010/CAPE 2016
Mr Groban's salary
The personal assets of Mr Groban
The company car used by Mr Groban
Mr Groban's ownership interest in
the company
The process of setting up a corporation in
accordance with the laws of the country in
which the business is located is referred to as
(A)
Which ofthe following standards emphasizes
health and safety in the production process?
prospectus
code of ethics
mission statement
health and safety regulation
Mr Groban is a director at XYZ Inc., which
has had a legal claim made against it to
settle a considerable outstanding debt. The
company is currently facing serious financial
challenges. Which of the following may be
affected in the course of settling the claim?
(A)
(8)
(C)
(D)
Business ethics and integrity will DIRECTLY
impact organizational
(A)
(B)
(C)
(D)
5.
7.
maximize the return to shareholders
focus on the firm 'score competencies
build internal collaboration
networks
be willing to collaborate with
customers and competitors
(B)
(C)
(D)
incorporation
limited liability
gomg concern
obligation
GO ON TO THE NEXT PAGE
-3IO.
A major disadvantage of B OTH general
partnerships and sole. trading organizations is
the
(A)
(B)
(C)
(D)
11.
(C)
(D)
reports illegal and unethical behaviour
speaks loudly during the decisionmaking process
contributes capital but is inactive in
managing the business
seeks new innovative ways of doing
things within a business
A private hotel chain has decided to allow the
local community access to part of the beach in
front of its property at no cost.
(A)
(B)
(C)
(D)
15.
16.
(D)
13.
a political obligation
an environmental obligation
an economic responsibility
a social res12onsibili!l'.
Which of the following forms of business
ownership is affected by double taxation?
(A)
(B)
(C)
(D)
18.
personal feasibility
financial feasibility
operational feasibiliy
managerial feasibility
Which of the following feasibility analyses
assesses whether a new business venture will
provide a return on investment?
(A)
(B)
(C)
(D)
02260010/CAPE 2016
Second inquiry
Product analysis
Primaiy research
Feasibility analysis
The process by which an entrepreneur
determines if he has the required technical
skills and necessary equipment for a business
idea is referred to as
(A)
(B)
(C)
(D)
Cooperatives
Partnerships
Public corporations
Sole proprietorships
profits and losses
revenue and expenses
savings and investments
bribery and discrimination
Which of the following involves collecting
and analyzing first-hand data?
(A)
(B)
(C)
(D)
17.
is in business to create a profit
takes environmental objectives into
consideration
is highly inclined towards socializing
and networking
starts andmanages several companies
at the same time
A good business ethics policy can help a
company address issues such as
(A)
(B)
(C)
(D)
The hotel is fulfilling
(A)
(B)
(C)
Which of the following is a distinguishing
feahire ofa social entrepreneur?
He/She
complex fo1mation requirements
limited pool oftalent available
unlimited liabiliry ofowners
limited liability ofowners
In the context ofvenhire operations, a whistleblower is a person who
(A)
(B)
12.
14.
Technical
Marketing
Industry
Financial
GO ON TO THE NEXT PAGE
-4-
19.
One of the key components of a feasibility
analysis is
(A)
(B)
(C)
(D)
20.
(A)
(B)
(C)
(D)
02260010/CAPE 2016
25
Net cash outflow from investing activities
19
Net cash outflow from financing activities
2
(A)
(B)
(C)
(D)
24.
efficiency
liquidity
gearing
solvency
liquidity
payback
profitability
Net cash inflow from operating activities
The net change in cash and cash equivalent
during the 2014 financial year was
profitability
The amount oftime it takes a business to earn
a profit after the initial investment is referred
to as
The following is an extract ofthe Cash Flow
Statement for Shanah Ltd for the financial
year 2014.
($ millions)
goods
service
value
discounts
Raising funds by debt financing rather than
equity financing affects a business'
(A)
(B)
(C)
(D)
22.
an individual's SWOT profile
product characteristics
income generation
product offering
Entrepreneurs are involved in various types
of business but in each case, they are finding
ways to make money by giving customers
(A)
(B)
(C)
(D)
21.
23.
A short-term debt obligation which is backed
by the government and has a maturity ofless
than one year is known as a
(A)
(B)
(C)
(D)
25.
$ 4 million (increase)
$ 4 million (decrease )
$27 million (decrease)
$27 million (increase)
bond
stock
treasury bill
fixed deposit
Surplus cash reinvested in the business may
be classified as
(A)
(B)
(C)
(D)
equity financing
long-term debt finance
short-term debt finance
owner contributed finance
GO ON TO THE NEXT PA GE
-5?
26.
The following amounts were taken from the
books ofDigiX.
$
Rent paid
10 000
1 500
Increase in value ofcar
1 000
Rent prepaid at year end
Loss on sale ofcomputer
500
What value should DigiX record in the
Statement of Comprehensive Income as
expenses?
(A)
(B)
(C)
(D )
27.
Balance Sheet
Income Statement
Cash Flow Statement
Expenses Statement
Which section of the business plan gives
infomiation about competitors?
(A)
(B)
(C)
(D)
29.
$10 000
$11 000
$11 500
$12 000
Which of the following statements answers
the questions "W11ere the money will come
from?" and "Where it will go?"
(A)
(B)
(C)
(D)
28.
Which ofthe foJlowing is the BEST definition
ofa firm's value proposition?
(A)
(B)
(C)
(D)
30.
The product offered
The product and services provided
The satisfaction of customer needs
and expected profit margin
The product and services required to
satisfy customer needs
Faith has created a business plan for a potential
solar panel production facility. Which of the
following will be shown in the operations
section ofthe plan?
(A)
(B)
(C)
(D)
31.
Financial
Marketing
Operations
Management
Strategies to attract new customers
Management structure and policies
The expected revenues, costs and
profits ofthe business
Labour, materials1 infrastructure
requirements and the production
process
Generally, the stages ofthe venture life cycle in correct order are
(A)
start-up activities - new venture development---* venhire growth---* business stabilization---*
innovation/decline
(B)
new venture development---* start-up activities---* venture growth ---* business stabilization->
innovation/decline
(C)
start-up activities - venture growth ---* new venture development -> business stabilization
- innovation/decline
(D)
new venture development- venture growth-> start-up activities---* business stabilization->
innovation/decline
02260010/CAP E 2016
GO ON TO THE NEXT PAGE
-632.
In which of the following situations 1s
business valuation important?
I.
33.
IL
III.
Establishing an employee stock
option plan
Buying out a partner
Raising growth capital
(A)
(B)
(C)
(D)
I and II only
I and III only
II and III only
I, II and III
(B)
(C)
(D)
(B)
(C)
(D)
37.
38.
stock count
valuation
profit
asset
(A)
(B)
(C)
(D)
suitably trained personnel can be
hired
web-based sales begin to erode
traditional sales
identifying a suitable firm to host the
website
a strategy to integrate the web into
overall strategy is developed
40.
electronic commerce
conceptual exchange
continuous exchange
perpetual trade
When assessing the online potential of a
business venture, consideration should be
given to
(A)
(B)
(C)
(D)
02260010/CAPE 2016
an increase in market share
an increase in vehicle options
a reduction in the business' unit cost
increased c apacity to enhance
customer service
The buying and selling of products and
services via the Internet is known as
(A)
(B)
(C)
(D)
The decision to go into e-commerce should
be pursued ONLY after
net book value
initial public offering
multiple earnings value
discounted cash flow
John is the owner ofa new car dealership and
has enhanced his website to sell cars online.
The advantage of doing this is
(A)
(8)
(C)
(D)
39.
Price-earnings analysis
Discounted cash flow
B alance Sheet analysis
Asset book value
An entrepreneur can value his business based
on the current value of future cash flow. This
valuation method is known as
(A)
(8)
(C)
(D)
A critical part ofpreparing for an initial public
offering is establishing a good
(A)
(B)
(C)
(D)
35.
Increased competition, market
saturation, sales increase
Decline in business, acquisitions, new
product development
D eveloping the mission, conducting
research, feasibility assessment
Expansion of team, administrative
c h a l l en g e s, refo r mu l a t i n g
strategies
When considering an investment, which
method compares the stock market price of
the shares with the profits being generated?
(A)
What are the features of the 'business
stabilization' phase of the venture life cycle?
(A)
34.
36.
data mining, target markets, difficulty
of access to offi ine customers
appeal to customers, online shopping
malls, data mining
appeal to customers, target markets,
costs and benefits
costs and benefits, domain name,
target markets
GO ON TO THE NEXT PAGE
-741.
Shanise wants to determine the overall value
ofher business venture. To estimate its value,
Shanise can use
(A)
(B)
(C)
(D)
42.
43.
consumer value
annual sales revenue
average annual net income
the book value of all assets
As in a brick-and-mortar model, a frequent­
buyer programme can help an e-commerce
initiative establish
(A)
(B)
(C)
(D)
Which of the following considerations
is MOST important when developing a
community to enable e-commerce success?
(A)
(B)
(C)
(D)
44.
45.
Dynamic site design
Social media presence
Adequate sponsorship listings
Restrictions on the type of content
posted
privacy
loyalty
security
flexibility
Many attempts at e-commerce fail because
of the belief that
(A)
(8)
(C)
(D)
technology is all that is needed the
most important factor is strategy too
much security is better than too
little
online sales can lead to new growth
opportunities
When a business venture first begins
operations, it usually experiences
(A)
(B)
(C)
(D)
low sales, high costs
low sales, low costs
high sales, low costs
high sales, high costs
END OFTEST
IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.
02260010/CAPE 2016
2017
-2One advantage of the franchise approach to
business is that the entrepreneur gets more
A)
B)
(C)
(D)
2.
3.
(C)
(D)
5.
(D)
Sole trading
Partnership
State enterprise
Limited liability company
break even
push the economic interest of its
members
improve the standard ofliving of the
country
bring together a group of existing
companies to form one company
Reduced profit due to payment ofroyalty fees
can be a major DISADVANTAGE of the type
of venture known as
(A)
(B)
(C)
(D)
7.
8.
(C)
(D)
sole trading organization
general partnership
limited liability company
nongovernmental organization
02260010/CAPE 2017
OSHA
HACCP
Duty of Care
ISO Standards
The process of setting up a corporation, in
accordance with the laws of the country in
which the business is located, is referred to
as
(A)
(B)
(C)
(D)
10.
innovation
brainstorming
creative thinking
entrepreneurship
Which of the following emphasizes health
and safety in the production process?
(A)
(B)
9.
maximize the return to shareholders
focus on thefirrn 'score competencies
build an internal collaboration
network
be willing to collaborate with
customers and competitors
In business, the ability to find and apply
creative solutions to problems and create
opportunities is termed
(A)
(B)
(C)
(D)
franchise
sole trader
private company
state-owned enterprise
Kati and Erika are interested in starting a
beauty salon together. While their proposal
has attracted the attention of many willing
investors, Kati and Erika are unwilling to risk
all their personal assets in the event that the
business venture fails. Given this, the form
ofbusiness MOST suitable for Kati and Erika
to undertake is a
(A)
(�)
(C)
(lJ)
An entrepreneur wishing to adopt open
innovation must
(A )
(B)
(C)
The primary purpose of a cooperative is to
(A)
(B)
4.
profit
guidance
capital
partners
In which of the following ventures does the
entrepreneur face the LEAST risk?
(A)
(B)
(C)
(D)
6.
incorporation
limited liability
going concern
obligation
A company has developed a mobile phone
app, the coding for which was designed by the
in-house developers. What can the company
do to ensure that the coding is not utilized by
others?
(A)
(13)
(C)
(D)
Obtain a copyright.
Attain a design patent.
Initiate rapid prototyping.
Register the code for Intellectual
Property Rights.
GO ON TO THE NEXT PAGE
-3ACME Inc. has offered the purchasing agent
at a company a sizable monetary incentive if
the company awards it a very I ucrative contract
for which it is tendering. What would be the
MOST ethical option for the purchasing agent
to choose?
Which ofthe followlng are the four dimensions
of corporate social responsibility (CSR)?
-
(A)
(B)
(C)
(D)
12.
Arianne has recently staited an independent
venture known as Help the Helpless which
seeks to provide free meals for homeless and
convalescent individuals in her city.
he
venture is sustained through donations and
other business revenue streams. This venture
can be BEST described as
(A)
(B)
(C)
(D)
13.
Legal, ethical, political, anti-social
Economic, legal, ethical, volunta1y
Economic, unique discriminatory,
ethical
Voluntary, legal, investment,
profitability
(A)
(B)
(C)
(D)
16.
open innovation
profit marginalization
social entrepreneurship
government intervention
I.
II.
III.
Sole trader
Partnership
Limited liability company
(A)
(B)
(C)
(D)
I and JI only
I and III only
II and Ill only
1, II and Ill
Which of the following would OT be
considered a component of the market
research process?
(A)
(B)
(C)
Which of the following would be considered
a business?
(D)
17.
(A)
(B)
Which of the following is a distinguishing
feature of a social enti-epreneur?
(A)
(B)
(C)
(D)
Highly inclined towards socializi11g
and networking
Repeatedly starts and manages
several companies at the same
time
In business to create a profit and
personal wealth for shareholders
Takes environmental, social
and economic objectives into
consideration
02260010/CAP E 2017
(D)
18.
Feasibility analysis
Location analysis
Definition of the pm-pose of the
i-esearch
Use of an infmrnation-gathering
instrnment
Market research is the process of obtaining
information on
(C)
14.
Discuss the situation with his
immediate boss.
Accept the offer as long as
confidentiality can be guaranteed.
Decline the offer and follow
the established procedures for
tendering.
Negotiate with ACME for a non­
monetary incentive instead.
the source of financing for the
business
the strengths and weak.ne ses of a
business idea
developing the best recmitment and
selection model
how the business can create value
and manage its operation
Which element of research is focused on
identifying and targeting the most profitable
customers with niche marketing campaigns
through various distribution channels?
(A)
(B)
(C)
(D)
Customer analysis
Promotional strategy
Expected sales trend
Product characteristic
GO ON TO THE NEXT PAGE
\
-419.
Which ofthe following factors are considered
when doing a personality SWOT analysis?
(A)
(B)
(C)
(D)
20.
21.
Grades, parents' money, movies,
friends
Race, neighbourhood, age, fashion
sense
Market conditions, economy,
taxation, liability
Skills, education, negative work
habits, your industry
Which of the following financial statements
gives a comprehensive view of a firm's
profitability?
(A)
(B)
(C)
(D)
Cash budget
Balance sheet
Income statement
Cash flow statement
Teny and Ben have decided to open an
ice cream shop. To set themselves apart,
they intend to offer a smoother texture ice
cream than their competitors and they have
thirty options for toppings. On which of the
components of the business model are they
focusing?
c... -,
(A)
(B)
(C)
(D)
22.
23.
Product differentiation
Income generation
Beneficiary
Operations
Which of the following are important
questions to consider when developing a
business model?
I.
II.
III.
How do you create value?
What are the sources of financing?
What is your internal source of
advantage?
(A)
(B)
(C)
(D)
I and II only
I and III only
II and III only
I, II and III
02260010/CAPE 2017
E-Games Ltd, a recently established fin11,
is seeking finance to develop and market
indigenous Caribbean card games online.
The MOST appropriate source of financing
for E-Games Ltd would be
(A)
(B)
, (C)
(D)
24.
Which of the following is a form of equity
financing?
(A)
(B)
(C)
(D)
25.
equity financing
long-term debt finance
short-term debt finance
owner contributed finance
The value of expenses recorded in the income
statement by an entrepreneur for the year is
the amount
(A)
(B)
(C)
(D)
27.
A loan
A debenture
Personal funds
Issuing of bonds
Surplus cash reinvested in a business may be
classified as
(A)
..-- .
(B)
(C)
(D)
26.
tax incentives
venture capital
a bank overdraft
a short-term bank loan
defetTed
owed
incmTed
disbursed
Which of the following statements answers
the questions "Where will the money come
from?" and "Where will it go?"
(A)
(B)
(C)
(D)
Balance sheet
Income statement
Cash flow statement
Expenses statement
GO ON TO THE NEXT PAGE
-s28.
Faith has created a business plan for a
potential solar panel production facility. In
the operations section of the plan, which of
the following will be indicated?
(A)
(B)
(C)
(D)
Strategies to attract new customers
Management structure and policies
The expected revenues, costs and
profits of the business
Labour, materials, infrastructure
requirements and the production
process
30.
A short-tenn debt obligation backed by the
government with a maturity of less than one
year is known as a
(A)
(B)
(C)
(D)
bond
stock
treasury bill
fixed deposit
·which ofthe following is the BEST definition
of a firm's value proposition?
(A)
(B)
(C)
(D)
31.
32.
The product offered
The product and services provided
The satisfaction of customer needs
and expected profit margin
The product and services required
to satisfy customer needs
Generally, the stages of the venture life cycle in the coJTect order are
(A)
stait-up activities➔ new venture development➔ venture growth➔ business stabilization➔
innovation/decline
(B)
new venture development➔ start-up activities➔ venture growth➔ business stabilization➔
innovation/decline
(C)
stait-up activities➔ venture growth➔ new venture development➔ business stabilization➔
innovation/decline
(D)
new venture development➔ venture growth➔ start-up activities➔ business stabilization➔
innovation/decline
When a business venture first begins operations, it usually expe1iences
(A)
(8)
(C)
(D)
low sales, higl1 costs
low sales, low costs
high sales, low costs
high sales, high costs
, 022600 LO/CAPE 2017
GO ON TO THE NEXT PAGE
--
-6l
33.
Mr Ali is considering purchasing an existing
restaurant. He shouldhave the business valued
in order to determine the
(A)
(B)
(C)
(D)
34.
stock count
valuation
profit
asset
(C)
(D)
39,.
(B)
(B)
(C)
(D)
(D)
net book value
discounted cash flow
comparable transactions
multiple earnings value
02260010/CAPE 2017
41.
The business price is equal to the
future value of earnings.
The business price is calculated
using a multiple of future
eammgs.
The business price is the interest rate
multiplied by fuh1re earnings.
The business price is the present
value of the stream of future
earnings.
Which of the following is an e-commerce
myth?
(A)
(B)
(C)
(D)
Price-earnings analysis
Discounted cash flow
Balance sheet analysis
Asset book value
An eAtrepreneur can value his business based
on the cwTent value ofthreeyears offutme
cash flows. This valuation method is known
as
(A)
(B)
(C)
(D)
(C)
40.
Whentheventureisnotincorporated
When the stock market is extremely
volatile
When the venture is innovative and
creatively destructive
When the operations ofthe venture
are similar to a listed company
Which of the following statements regarding
the discounted future earnings valuation
method is correct?
(A)
investing
initial publication
divestment of interests (DI)
an initial public offer (IPO)
When considering an investment, which
method compares the stock market price of
the shares with the profits being generated?
(A)
37.
(A)
(B)
When shares of a business venture are sold
to the general public for the first time on a
stock exchange, it is referred to as
(A)
(B)
(C)
(D)
36.
size of the workforce
investment capital needed
size of the meals provided
level of corporation tax to be paid
Acriticalpartofpreparingforan initial public
offering is estab]jshing a good
(A)
(B)
(C)
(D)
35.
Under which of the following conditions
shouJd the price earnings method of venture
valuation be used?
Accessibility to wider audience.
Setting up a site is very difficult.
Privacy is not an important issue.
Customer service is of key
importance.
Facebook and eBay offer businesses a
presence to sell products and services for
a small subscription fee. Which approach
to e-commerce is BEST describes this
arrangement?
(C)
(D)
Store front
Outsourcing
Online shopping mall
Internet service provider
GO ON TO THE NEXT PAGE
-742.
The decision to go into e-commerce should
be pursued ONLY after
(A)
(B)
(C)
(D)
43.
suitably trained personnel can be
hired
web-based sales begin to erode
traditional sales
identifying a suitable firm to host
the website
a strategy to i ntegrate the web into
overall strategy is developed
44.
(A)
(B)
(C)
(D)
45.
Which of the following is an e-commerce
myth?
(A)
(B)
(C)
(D)
As in a brick-and-mortar model, a frequent­
buyer programme can help an e-commerce
initiative establish
Getting sufficient traffic to your
web site r equires o n going
promotion.
Online customers typically want to
be able to track the status of their
order.
Online customers like sites that
have a wide selection available
immediately to them.
Customers prefer websjtes with
more bells and whistles, even
if it creates a slower browsing
experience.
privacy \
loyalty
security
flexibility
Many attempts at e-commerce fail because
of the belief that
(A)
(B)
(C)
(D)
technology is all that is needed
the most important factor is strategy
too much security is better than too
little
online sales can lead to new growth
opportunities
END OFTEST
IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.
;;:
02260010/CAPE 2017
2018
2019
FOI
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/ "TEST CODE 0226001(
'
lh b b ooiMMMyon r r n m e r r b c
CARIBBEAN
Mlhlol
MAY/JUNE z ul
EXAMINATIONS COUNCIL
CARIBIIEAN ADVANCED PROFICIENCY EXAMINAT ION*
ENT REPREN EU RS H I P
UNIT 2-Paper O l
h ottr 3 0 m in u te s
1
(06 J UNE 20 19
READ THE FOLLOWWG INST RUCT IONS CAREFULLY.
the m.
I h ou r and 3 0 m in u te s 10 a n swe r
I.
T his tes t c on sists of 45 ite m s. Yo u will h a ve
2.
In a d d ition
3.
Do n ot b c c on c e r n e d th a t th c a n swe r s heet p r ovid e s s p ac es
to
th is t e s t b o o kle t yo u sh ou ld h a ve an a n swe r
s heet.
for m or e a n swe r s th a n there
a r e ite t
in th is t e s t .
a n swe r s l ettered (A), (B), (C), (D).
Ea c h ite m i n th is tes t hq s fou r s ug g es ted
and d ec i d e wh ic h c ho i c e is b es t.
yo u a r e ab o ut t o a n swe r
5
and s had e
wh ic h c or r e sp on d s t o yo ur ite m
O n yo ur a n swe r s heet, find the n u m b e r
a t the sa m p le ite m b e lo w.
a n swe r yo u h a ve c h ose n . Lo o k
having thc s ame le tte r a s th e
o ne o fthe m a jor c h a lle n g e s on lin e
h a ve is
retai l ers
it·
th e s p
S am ple Answr
tracking s al es r e su lts
manag ing c om m u n ic a tion
(A)
(B)
(C)
(D)
c u stom e r se r vic e
le ve ls
t o maintain sufficie nt stoc k
th e c a p a c ity t o enhanc e
th e ability
T he b e st a n swe r t o this ite m is U \h c ability
10
maintain suflicicnt sto ck le ve ls", S O (D)has
sh a d e d .
new cno lc'
fill in yo ur
E ra s e it co mp lclcly b e for e yo u
I yo u want t o c h a n g e yo ur a n swe r.
as yo u C
and wo rk a s q uickly and a s care mlly
told
t o b e g in , lum th e p ag e
are
Whe n yo u
r e tu r n to th a t ite m la te r.
on c . Yo u
r
6.
7
yo u c a n n ot a n swe r
an ite m , g o on t o th e n e xt
Yo u may d o any r ou g h wo rk in
9.
n e c e ssa r ily d r a wn
Fig u r e s a r e n ot
10 .
Yo u may us e a sile nt n on -p r og r a m m a b le
__.
.,
may
th is b ookle L
8.
0
.' .
·
Re a d eac h
4
to
sc a le .
calculato r t o a n swe r ite m s.
YOU ARE TOLD T O DO SO.
DO NOT T URN T HIS PAGE UNT IL
Copyright
\
0 20 18 Ca r ib b e a n Examinatio ns Co uncil
All rig hts r e se r ve d .
I.A
good b usine ss e thics
policy c a n h e lp a
c om pany addm Issu e s such a s
(A)
(B)
(C)
1D)
2
-2\
5.
b cauly sa lon togc hc n While the irproposal
profits and losse s
re ve nue and e x p c n se s
. invc ston,
bribery and disc rim ination
(D)
3.
6.
ll.
III.
(A)
(B)
(C)
(D)
Ea sc of inform ation.
Taxe s p a id a r e -b a se d on profiL
The y a r e a se p a r a te le g a l e ntity.
I and
I and
II only
IIIonly
II a n d Ill only
I, II and III
In whic h ofthe following type s o fve nture s
is re duc e d
profit d u e 10 p ayme nt ofroyally
fe c s a m ajor DISADVANTAGE?
(A»
Franchise
(B)
(C)
(D)
S ole tmd e r
Private co mp any
S tale -owne d cntcrp risc
(A)
sole trad ing
(B)
(C)
g e n e r a l p artne rship
lim ite d liabiliw m m pany
(D)
no ng o ve mme nml
o=anization
organization
ira b u sin e ss is liste d o n th e sto ck e xchang e
it m e a n s th a t it is a
Which of thc following a r e characte ristics
of limite d liability co mp anie s?
I.
4.
Is CXC smoking?
It's code of ethics
value sta te m e n t
missio n sta te m e n t
he alth a n d safe ly re g ulatio n
as s ets
to
in c a se th e
ve nture nils. G ive n this, th e BEST forirt of
b u sin e ss th a t Kati a n d Ehc a sho uld cre ate
for a variety of situatio ns whic h
g u id e s
e m ploye e s' be haviour i s r e fe r Te d t o a s a
(B)
(C)
Kati n n d Erica nn unwilling
hsk a ll r h e ir p e r son a l
savings and inve stme nts
p r osp e c tu s
a
m atmctd Me a llc n tion of m any willing
A state me nt of sp e cific m le s or sta n d a r d s
(A)
Kati n n d Erica a r c inte mstcd in suning
7.
(A)
private co mp any
(B)
(C)
limite d p anne rship
limite d liability co mp any
(D)
nonsove m m e nul organization
Whic h of the following a r e DISADWNTAGES expeenced by Wershipswhe n
e xp ansio n of Me ir c apital-base
thm ugh th e ad missio n oFa n e w pannen
sce kin8
I.
II.
III.
S haring of prohls
Lo ss ofc ontrol o ve r ope rations
S im plihc ation of futum d ire ctio n
(A)
I a n d 11 only
(B)
I and
(C)
(D)
I, II a n d III
IIIonly
II and III only
T ile prln\ary p u r p ose ura c oop e m llvo
(A)
n nc l t ilie hm ike vc n p oin t
(11)
p u sh lh c c c on on \ic
n \¢ m b e r s
(C)
(U)
ls
b ring tog e th e r n g mup
or
(C)
(D)
t0
il th a t th e e ntm re ne ur g e ls m oR
(A)
p r u Hl
m pitnl
living of
(U)
(C)
(D)
g u id a n c e
p n Hn e r s
of e xisting
T he p r oc e ss ofsc tting u p n co rp o mtio n. I n
a c c o MU n c e with lh c la ws o fthe co untry i n
Io
wh ic h th e b u sin e ss is l o c ated , is re fe mu
(A)
(B:
On c tttlvn n hge)fl t\c* nnc h iw n p p m a c h
b l l s in css
c om p n n le s t o fon n o nc c om p a n y
9.
IJ .
i ts
In lc r e sl o r
In\p ro ve th c s tnml nrc l
th c co untry
to
inco rp o mtio n
limite d iability
Whic h ofthe hllowing is a distinguishing
nature
of a soc ia l cntre p re ne un
(A)
Highly incline d to waMsso cializ ing
a n d ne tworking
(B)
In
o b lig atio n
Mr shamho ld e rs
(C)
se ve m l
1
g oin g c on c e r n
p e r son a I we aln
c om p a n ie s
at
Me
sa m e
tim e
(D)
a n d e co no mic
oyectives into
co nsid e mtio n
--DI RECT IY
(A)
11.
im p a c t o rg aniz atio nal
ince ntive
co mp any a simb le mo ne tnw
ifthe co mp any is award e d a vew lucmtive
What
co ntract hr wh ic h it is te nd e 6 ng .
th e
would b e th e MOST e thical option
at a
pm fits
(B)
str u c tu r e
(C)
b e havio ur
(D)
p e r for m a n c e
p urchasing a g e n t t o
d oe s th e
In wh ic h o fthe following ve nture s
LEAST risk?
e n tr e p r e n e u r fa c e th e
(A)
(B)
(C)
(D:
ACME In c . H a s offe r e d Me p urchasing a g e n t
P a r m e r sh ip
(A)
S ta te e n te r p r ise
Limite d
liability co mp any
th e
situation
with
his
im m diate b oss.
(B)
(C)
S ole trad ing
Discuss
c h oose ?
r
co n
hde ntialivc an b e g uamnte e d .
th e
e sta b lish e d
p r oc e d u te s
Mr
te nd e hng ,
(D)
mo ne taw ince ntive inste ad .
A majo r DISADVANTAGE of b oth g eneral
p a r tn e r sh ip s
is th e
(A:
(B
(C)
(D)
and
so le
tmd ing o rg animtio ns
limite d liobiliw of own e r s
unlimite d liabiliw of own e r s
of ta le n t availab le
lim ite d
p ool
co mp le x fo rmatio n r e qu ir e m e n ts
Whic h ofthe hllowing me Mo d s invo lve s
co lle cting G rst-hand d a ta and analysing it?
(A)
(B)
(C)
(D)
S e c on d
inquiw
P mduc t
analysis
Primaq r e se a r c h
Fe m ibil iw analysis
GO ON T O T HE NEXT PAGE
Whic h o fd tc following fcaslb ilityanalyscs
17.
whe the r or n ol
assesses
ncw
n
20.
¢
b u sin e ss
vcnlurc will p ro vid ca mlum on inve stme nt?
(A)
Industry
(B)
(C)
Financ i nl
(D)
In c om e sla le m c n t
Marke ting
(D)
Cash no w sla te m c n t
(B)
liquidity
(C)
(D)
p r od u c t c h a m c te r istic s
(C)
so lve ncy
nn
(D)
prontability
Which
of th c following g m u p s of fa c tor s
ind ivid ual' s SWOT p r ofile
a
p ayb ack
Mv
(B)
(C)
R ac e, n e ig h b ou r h ood , ag e, e c on om y
Marke t co nd itio ns,
taxatio n, liability
e co no my,
S kills, e d umtio n, n e g a tive
h a b its, yo ur ind ustry
T he fo llo wing
is
an e xtr a c t
wo rk
ofhe c as h Oow sta te m e n t fo r S hanah Ltd hr th e financ ial
Ne t c as h inflo w fr om op e r a tin g activitie s
Ne t c as h o uino w fr om inve sting activitie s
Ne t c m h o utflo w fr om
financinB activitie s
m e n c t c h a n g e in c as h n n d c as h
ye ar 2017.
($ m illions)
25
19
2
e qu iva le n ts d uring th e 20 17 financial
ye ar
wm
$4 millio n ( in c r e a se )
(A)
54 millio n ( d e c r e a se )
(B)
(C)
$27 millio n ( d e c r e a s¢
$27 millio n (i nc reas e)
« D)
·
I,,
to
p e r son a lity
Gm d e s, Pare nm onc y, e d u c a tion ,
1D)
-, P. $.
a n c r Mc initial inve stme nt is re fc m d
(A)
(A)
p..
H]epcriodit m e sa b u sin e ss t o camaproht
p md ucl om e r in g
in c om e g cncmtio n
SWOT analysis?
iji.,
21.
Ba la n c e sh e e t
(A)
(B)
a r e c on sid e m d wh e n d oin g
-_: $
Cash b u d g e t
T e chnical
analysis is
22.
pmfitability?
(A)
(B)
(C)
18.0ne ofthe ke y c om p on c n ls ofa fcnsib ilily
19 .
Whic hofthc followingfinanc ialstatc m c nts
g ive s a co mp re he nsive vie w of a firm S
y.' . ,
:
000N TO T HE NEXT PAGE
as
.
'-is
E
Mn\c s Ltd. a mnt ly c sln b lish e d
mirw linancing
Io
indigc now Ca r ib b e a n
linn,
d e v c lop m d m a r ke t
27.
c o nt g a m e s on lin e .
me h IOS Tnppm priatc sou m e
fo r
E-Gam Ltd wo uld b e
(A)
tax ine c ntivts
(B)
(C)
Ve nture cap ital
0 b ank ovc nlm ft
1D)
a
www
Wh ic h ofth e fo llo wing s t a t e m e n t s
th e q ue stio ns-Whe re will th e mo ne y c om e
from ?"and-Whe re will i t g o T
o ffinancing
(A)
Ba la n c e s heet
(B)
In c om e sta te m e n t
(C)
Ca sh Row mte me nt
(D)
Exp e n se s sta te m e n t
sho rt-\e m\b ank lm n
Con su m e r s
ofa p r od u c t a r e p r ovid e d with
list of c h a lle n g e s in a g e n e r a l p r od u c t
mle g o ry. Mey a r e th e n askd t o idm tify
a n d d i s c us s p r od u c ts in th is c a te g or y th a t
a
24.
Wnic h ofthe following is a fon n ofe quity
financing ?
h a ve sim ila r c h a lle n g e s. T his i s an e xamp le
of
« B)
De b e nture
(C)
P e r son a l fu n d s
(D)
Unit 1????
(A)
(B)
Issuing of b on d s
b rainsto rming
(C)
th e c h e c klist m e th od
a foc u s g r ou p d isc u ssion
(D)
p r ob le m inve nto ry analysis
25_ Surplus c as h r e in ve ste d in a b u sin e ss may
b e c la ssifie d a s
(A»
(B)
(C)
(D)
Whic h of th e following is th e BEST
d e finitio n ofa firm' s va lu e p mp o sitio n?
e quity financing
lo ng -te rm d e b t fin a n c e
sh or t-te r m
owner« on tr ib u te d
fin a n c e
of e xp e n se s
r e c or d e d
T he va lu e
(A)
d e b t fin a n c e
in c om e sta te m e n t by
th e ye ar is th e amo unt
(B)
(C)
in
th e
an e n tr e p r e n e u r
fo r
(D)
me p r od u c t on e r e d
T he p r od u c t a n d se r vic e s p ro vid e d
T he sa tisfa c tion o fcusto me r n e e d s
a n d e xp e c te d pmfit marg in
T he p md uct a n d se r vic e s r e qu ir e d
to
30 .
satisfy c u stom e r n e e d s
A sh or t-te r m
d e b t o b lig atio n
b a c ke d
by
(A)
(B)
owe d
in c u r r e d
th e g o ve rnme nt with a m aturity of l es s
(C)
d e fe r r e d
( h a n o n e ye ar is kno wn
(D)
d isb u r se d
(A)
(B)
(C)
(D)
b on d
sto ck
tr e a su r y b ill
fixe d d e p osit
as a
..
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(A)
Il
l o l tH+
t+ luw
nl l th n t l#n c c d ¢ d
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(II)
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Whe n l\bm iinc xs ve n tu r e
inve stme nt cap ital
of co rp o ratio n lax
(D)
le ve l
Wh e n
c on sid e r in g
(C)
(D)
33.
(A)
lo w s o l es h ig h c o s t s
lo w s al es , lo w c o s t s
hig h s al es , lo w c o s t s
(U)
(B)
(C)
(D)
h ig h s al es , h ig h c o s t s
R he d c c is ion t o g o in to e -co mme m
b e p u r su e d
sh ou ld
ONLY a fte r
suitab ly tr a in e d p e r son n e l c an
(A)
(B)
a
su im b le firm t o h ost th e wc b silc
is
id e n tifie d
sa te s b e g in
tm d ition a l sa le s
(C)
we b -b a se d
(D)
a strate g y t o
Io
37.
e r od e
Io
b c p aid
inve stme nt, whic h
or
th c sto ck marke l p r ic e
an
Pric m am in g s a n a lys
is
Disco unte d c a sh flow
Ba la n c e sh e e t analysis
Asse t b ook value
h is b u sin e ss
c a sh
b as ed on th c c u r r e n t value of Mture
as
no ws. T his vatua\io n m c \h od is kno wn
An c n lr e p r e n e u r
bc
h ir e d
ne e de d
m e th od c om p a r e s
05 b c ing g e ne rate d ?
th e s hares with Me p ro ft
Iirs\be gins
up cmtio ns, it us unlly e xp c r ic n c e s
(A:
bu
of th c wo rkfo rce
up p \ttM\ilics
36
h'"'""X'X\
th c
I c sho uld h a ve
re staumnl. r
th c
t o d ctcrminc
vn[uctl i n or d e r
(A)
I! b c llc r l l nm l 0 0
l ead tol\e w
Mr All I· C O n
(A)
(B)
(C)
(D)
c an
va lu e
n c t b ook value
d isc ou n te d c a sh no w
in i{ia l p ub lic o ncring
multip le mming s value
in te g r a te th e wc b in to
o ve mll stmle g y is d e ve lop e d
S hares
of a b u sin e ss ve nture sold t o th c
first tim e on a stoc k
g e n e r a l p ub lic fo r th e
e xchang e is r e fe n e d t o a s
(A)
an in ve stm e n t
(B)
(C)
an
(D)
on
a
initial p ub licatio n
d ive stme nt of in te r e sts
initial p ub lic omr
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Ganao).&e
m
dhe*
m¢ wc fife
vc nm e g n Tn lh
d e ve lop m e n t
m
h
m
Me o wne r ofa ne w c ar
d cakrship .
b e ne fit o fe nhancing h is
we b si[e m s el l
42
z wi+
m
m line will b e
(A)
(D)
are
decfrne
ncw\» nurc
imxnninudcchne
(B)
(C)
l
developme«
(D)
39
cycL il&e CO ¢
z¢=O¢
in c r e a se d market*
gwm
m
(A)
(B)
h
m
[Nc]h
redm u n it m of b u sin e ss
(C)
c apac ity [o im prove
(D)
crmo me r se r vic e
of m
m=
way is
ime ase d ve h ic le op tion s
in c r e a se d
ities-bn* w mbi=iii
arch
dwe
s
im
Unit 1??? CXC smoking
40 .
Whic h of th e following stam c nts
mm a b ou t mmerce?
(A)
(B)
(C)
(D)
43.
is
A wid e r aud imce is mssiblc.
ming u p a site is ve ry diffic ulk
Privac y i s n ot an imp o rtant Issu e .
Customer se rvic e is of kcy
imp o rtance .
4J .
A c ritic al mrt of p r e p a r in g
public oflering
(A)
a sse t
(B)
(C)
profit
(D)
a
is
valuation
sto ck co unt
fo r an initial
e stablishing
a
g ood
In wh ic h
of m fo llo wing
b us i nes s va lu a tion
!
II
III.
Ra isin g g r owth mp ital
Estab lishing
(D)
m e m p loye e
stoc k
op tion p l an
Atte mp ting
to
(A), II aandn d llIll only
(B)
(C)
&
only
II and III only
I. II and Ill
b uy ou t a p artner
44.
As in n b rick-nntl-nto rlnr m otlc l. n
frequent -45.
b uye r p m Bm n u n c c an h e lp a l\C-c om m e m o
initiative e sta b lish
(A)
(B)
(C)
« D)
th c o veral \
To m tim a te
va lu e of h c r b u sin e ss vcnlurc.
th
e
us
e
its va lu e . S h n n ise mn
S hnni s c
(A)
(B)
p rivnc)
loyalty
( C)
se curity
nc xibility
(D)
m nts
Io
d e te r m in e
c on su m e r va lu e
annual sa le s r e ve n u e
rcportd i n thc financial s t a t c rn c n t
END OFWST
H YOU FWISH BEFORE
TIME
m
re m c d
b ook va lu e ofnll wscls
on th c b a lm c c sh e e t
n c t inco me a r
a vc m g c annual
YOUR WORK
is CALLED, CHECK
ON T HIS TW.
2020
Unit 1????
Paid - already paid
rent
2021