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FORM TP 2014229 ^L..o MAY/JUNE 2OI4

CARIBBEAN EXAMINATIONS COUNCIL


CARIBBEAII ADVAIICED PROFICIENCY EXAMINATION@
MANAGEMENT OF BUSINESS
IINITl-Paper032
I hour 30 minutes
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22 !e'[.AY 2014 (p.m.)


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READ THE FOLLOWING INSTRUCTIONS CAREFULLY.

l. This paper consists of a case study and THREE questions.

2- Candidates MUST answer the THREE questions.

3. Begin EACH answer on a separate page.

4. Each question is worth 20 marks.

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


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I Copfright @ 2013 Caribbean Examinations Council
I All rights reserved.
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INSTRUCTION: Read the case study and answer the questions that follow.

CASE STUDY

The Paper Copy Shop

Paul Paper, affectionately known as Mr R started a sole trader business offering photocopying services. The
name of the business was 'The Paper Copy Shop'. It was located near the Sun City College. The mission
statement was "To provide quality photocopying services to our valued customers, at the right time, right
place and right price".

For the first trvo years of operation, the business did extremely well. It provided students with 24-hour
access to word processors and copiers at very competitive prices. The firm employed eight persons who were
referred to as the 'Paper Team'. The team displayed a high level of commitment towards the achievement
of the organization's goals. There was a high level of trust, respec! support and encouragement among the
team.

Mr R the manager, involved the staffin the decision-making process of the firm. He valued their creativity,
experience and technical expertise. Mr P held annual staffrecognition functions where employees received
awards for outstanding performance and customer service.

Mr P was aware of the new trends in the marke! with computers and copiers becoming more readily
available to students. He realized that although the business was still profitable, he had to start thinking
of adding other products to his present line of offerings.

Mr P called a meeting with the staffto get their opinions on his new business idea. Different suggestions
were put forward by the team. However, the consensus was that the company should consider shifting
its focus from offering photocopying for students to include the sale and rental of 'top of the line'office
equipment, such as desktop colour printers and scanners catering mainly to business finns.

The accounting team reported that the accounting records were in order. This was important since
Mr P would need to seek additional finance to expand the business. The team must now consider possible
sources offinance for the expansion.

GO ON TO THE NEXT PAGE


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l. (a) (i) Define the term 'sole trader business'. [2 marksl

(i i) Outline TWO advantages and TWO disadvantages of operating The Paper Copy
Shop as a sole trader business. [8 marksl

(b) (i) Define the term'mission statement'. [2 marksl

(ii) Outline THREE reasons why it is important for The Paper Copy Shop to have
a mission statement. [6 marksl

(iir) State ONE way in which The Paper Copy Shop fulfils its mission statement.
[2 marksl
sEcoryn
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o$' LtBRARy ''Q4,a Total20marks
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2. (a) (i) Define the terrn'leadership styh [2 marksl

(iD Outline THREE advantages associated with the leadership style displayed by
Mr P. [6 marksl

(b) Outline ONE indicator of positive staff motivation shown at The Paper Copy Shop and
identifu the element ofAbraham Maslow's Hierarchy ofNeeds Theory that it addresses.
[2 marks]

(c) (i) Define the term'team'. [2 marksl

(iD Discuss TWO ways in which The Paper Copy Shop may benefit fr'om a
process.
team-oriented approach in the decision-making [8 marksl

Total20 marks

3. (a) Outline THREE benefits to The Paper Copy Shop of keeping accurate accounting records.
[6 marksl

(b) Identiff TWO possible sources of finance that Mr P could consider for the new business
venture. [2 marksl

(c) Discuss THREE factors that Mr P should consider when choosing a source of finance for
the new business venture. [l2marksl

Total20 marks

END OF TEST

IF YOU FINISH BEF'ORE TIME IS CALLED, CIIECK YOUR WORI( ON THIS TEST.

02t33032lCAPE2014