CAPE Management of Business Unit 1 · 2009 · Paper 2

16 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)12 marksExplain to Kevin TWO advantages and TWO disadvantages that a private limited company has over a sole trader.
2. 1(b)13 marksDiscuss THREE ways in which a shift in the country's economic system from a mixed to a planned economy could influence Kevin's decision to incorporate.
3. 225 marksDiscuss THREE benefits and THREE drawbacks that Caribbean nations could experience from multinationals operating within their territories.
4. 3(a)8 marksOutline FOUR characteristics of a bureaucracy according to Weber.
5. 3(b)17 marksDiscuss FOUR implications of Weber's bureaucracy for contemporary business organizations.
6. 4(a)12 marksExplain FOUR reasons why employees exhibit resistance to change.
7. 4(b)13 marksDiscuss THREE strategies or methods that can be utilized to manage resistance to change.
8. 5(a)(i)2 marksDefine the term 'working capital'.
9. 5(a)(ii)3 marksIdentify THREE components of working capital.
10. 5(b)20 marksIdentify the MOST suitable source of finance for EACH of the five specified areas, and explain why each identified source is the most appropriate.
11. 6(a)5 marksIdentify the appropriate balance sheet sub-heading under which EACH of the five omitted items would be classified.
12. 6(b)(i)3 marksOutline the MAIN difference between a performance ratio and a liquidity ratio.
13. 6(b)(ii)2 marksIdentify ONE stakeholder who would be interested in EACH type of ratio.
14. 6(c)(i)5 marksCalculate the Current Ratio for Eastwood Hardware Ltd. and explain its implication.
15. 6(c)(ii)5 marksCalculate the Acid Test Ratio for Eastwood Hardware Ltd. and explain its implication.
16. 6(c)(iii)5 marksCalculate the Gearing Ratio for Eastwood Hardware Ltd. and explain its implication.