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CAPE Management of Business Unit 1 · 2012 · Paper 2

27 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)(i)2 marksDefine the term 'multi-national corporation'.
  2. 1(a)(ii)6 marksOutline THREE reasons why firms become multi-national corporations.
  3. 1(b)17 marksDiscuss TWO potential benefits and TWO potential drawbacks of a multi-national company to the host country.
  4. 2(a)(i)2 marksDefine the term 'partnership'.
  5. 2(a)(ii)6 marksOutline THREE advantages that the sole trader would enjoy by continuing to operate as a sole trader rather than entering a partnership.
  6. 2(b)17 marksDiscuss TWO advantages and TWO disadvantages of converting the business to a limited liability company rather than forming a partnership.
  7. 3(a)4 marksDistinguish between 'training' and 'development'.
  8. 3(b)(i)4 marksOutline TWO conditions under which internally based training is BEST suited.
  9. 3(b)(ii)4 marksOutline TWO conditions under which externally based training is BEST suited.
  10. 3(c)13 marksDiscuss THREE reasons why training is important to organizations.
  11. 4(a)(i)2 marksDefine the term 'Leadership'.
  12. 4(a)(ii)2 marksDefine the term 'Conflict'.
  13. 4(b)4 marksDistinguish between a 'directive leadership style' and a 'participative leadership style'.
  14. 4(c)8 marksOutline TWO advantages and TWO disadvantages of the participative leadership style.
  15. 4(d)9 marksDiscuss TWO strategies that a manager may employ to manage conflict in an organization.
  16. 5(a)(i)a)3 marksCalculate the payback period for Project A.
  17. 5(a)(i)b)3 marksCalculate the payback period for Project B.
  18. 5(a)(ii)2 marksIdentify the project in which the company should invest based on the payback method, giving ONE reason for your choice.
  19. 5(b)(i)8 marksCalculate the net present value (NPV) for Project A and Project B.
  20. 5(b)(ii)2 marksIdentify the project in which the company should invest based on the NPV method, giving ONE reason for your choice.
  21. 5(c)(i)3 marksState TWO advantages and ONE disadvantage of using the NPV method.
  22. 5(c)(ii)3 marksState TWO advantages and ONE disadvantage of using the payback method.
  23. 5(d)1 markIdentify ONE investment appraisal method, other than the net present value and the payback method.
  24. 6(a)6 marksOutline TWO advantages and ONE limitation of ratio analysis.
  25. 6(b)4 marksDistinguish between a 'cash flow statement' and a 'funds flow statement'.
  26. 6(c)(i)3 marksIdentify THREE methods that a firm could employ to improve its cash flow position.
  27. 6(c)(ii)12 marksOutline ONE advantage and ONE disadvantage of EACH method identified in (c)(i).

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