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CAPE Management of Business Unit 1 · 2010 · Paper 2

24 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.

Practise this paper
  1. 1(a)8 marksDefine the term 'mission statement' and outline THREE reasons why a mission statement is important to a business.
  2. 1(b)(i)4 marksIdentify FOUR criteria that can be used to measure the size of a business.
  3. 1(b)(ii)13 marksEvaluate the effectiveness of THREE of the criteria identified in (b)(i).
  4. 2(a)13 marksDiscuss THREE main objectives of a typical business organization.
  5. 2(b)6 marksDefine the term 'social responsibility', giving TWO examples of how a firm can display social responsibility.
  6. 2(c)6 marksOutline THREE reasons why it is important for a firm to practise 'social responsibility'.
  7. 3(a)3 marksDefine the term 'participative leadership'.
  8. 3(b)16 marksDiscuss TWO advantages and TWO disadvantages of the participative style of leadership.
  9. 3(c)6 marksOutline THREE situations in which the participative style of leadership would be useful to KPJ Co. Ltd.
  10. 4(a)(i)2 marksDefine the term 'training'.
  11. 4(a)(ii)6 marksState THREE reasons why training is important to an organization.
  12. 4(b)(i)9 marksEvaluate TWO conditions under which internally based training programmes are BEST suited.
  13. 4(b)(ii)8 marksEvaluate TWO conditions under which externally based training programmes are BEST suited.
  14. 5(a)13 marksCompute the cumulative cash flow for EACH project.
  15. 5(b)6 marksCompute the payback period, in years, to two decimal places, for EACH project.
  16. 5(c)3 marksIndicate, giving a reason, which project the company should accept based on payback period.
  17. 5(d)3 marksAssume the IRR (Internal Rate of Return) of the projects are: Project A: 11.5%, Project B: 8%, Project C: 15%. Based on the IRR, indicate, giving a reason, which project the company should accept.
  18. 6(a)(i)3 marksExplain what is meant by the term 'cash flow statement'.
  19. 6(a)(ii)2 marksIdentify TWO financial statements, other than the cash flow statement, that are used by firms.
  20. 6(b)(i)4 marksAnalyse the cash flow situation of Nigel Enterprises under: Net cash inflow or outflow from operating activities.
  21. 6(b)(ii)4 marksAnalyse the cash flow situation of Nigel Enterprises under: Returns on investment and servicing of finance.
  22. 6(b)(iii)4 marksAnalyse the cash flow situation of Nigel Enterprises under: Net cash outflow from investing activities.
  23. 6(b)(iv)4 marksAnalyse the cash flow situation of Nigel Enterprises under: Increase or decrease in cash equivalents.
  24. 6(b)(v)4 marksAnalyse the cash flow situation of Nigel Enterprises under: Financing.

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