CAPE Management of Business Unit 1 · 2006 · Paper 1

29 questions and parts from this paper. Open one to see it in full, then practise it on Quelpr and get it marked against the mark scheme.

1. 1(a)2 marksIdentify the two main documents that must be submitted before registering the company.
2. 1(b)2 marksOutline one major difference between the two documents mentioned in (a).
3. 24 marksSuggest two reasons why the business may need to revise its objective.
4. 34 marksOutline two advantages that a small business may have compared to a large business.
5. 4(i)2 marksExplain one effect of Trade Liberalization on Caribbean businesses.
6. 4(ii)2 marksExplain one effect of Trade Liberalization on Caribbean consumers.
7. 5(a)2 marksDefine the term 'Break-Even Point'.
8. 5(b)2 marksOutline one limitation of utilizing Break-Even Analysis for decision-making.
9. 6(a)2 marksOutline one contribution of Scientific Management to organizational efficiency.
10. 6(b)2 marksState one criticism of Taylor's Scientific Management Theory.
11. 7(i)2 marksDescribe one specific management activity John should perform under the Planning function.
12. 7(ii)2 marksDescribe one specific management activity John should perform under the Organizing function.
13. 8(a)2 marksBriefly explain the meaning of job enlargement.
14. 8(b)2 marksOutline one way in which job enrichment can enhance job satisfaction.
15. 9(a)2 marksOutline two conditions best suited for internally based training programmes.
16. 9(b)2 marksOutline two conditions best suited for externally based training programmes.
17. 10(a)2 marksDefine the term 'matrix organizational structure'.
18. 10(b)(i)1 markIdentify the leadership style demonstrated in the scenario.
19. 10(b)(ii)1 markState one disadvantage of applying the leadership style identified in 10(b)(i).
20. 11(a)2 marksState one difference between equity capital and working capital.
21. 11(b)2 marksA business has working capital of 28 000 and current liabilities of 17 500. Calculate its current assets.
22. 12(a)2 marksOutline one distinction between a commercial bank and a development bank.
23. 12(b)2 marksState one reason why creditors would be interested in reviewing a company's Balance Sheet.
24. 13(a)2 marksA company with a financial year ending September 30 is contracted to pay rent of 840 per month, and paid 9 660 for the year ending September 30, 2005. State whether the rent is accrued or prepaid and calculate the…
25. 13(b)3 marksState whether the manager's conclusion is correct and provide a reason based on the IRR values.
26. 14(a)1 markDefine the term 'cash budget'.
27. 14(b)2 marksA firm's acid test ratio changed from 3:1 in 1999 to 2:1 in 2000. Explain what this change signifies regarding the firm's liquidity in 2000.
28. 15(a)1 markIdentify the accounting concept that was violated.
29. 15(b)3 marksOutline the correct accounting treatment Sonia should have followed and explain why.