CAPE Management of Business Unit 1 · 2014 · Paper 2
25 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(a)4 marksOutline the difference between 'privatization' and 'nationalization'.
- 1(b)9 marksExplain THREE negative impacts that Sunset Island may experience as a result of the government privatizing the bus system.
- 1(c)12 marksDiscuss THREE ways in which the country may benefit from the privatization of the bus system.
- 2(a)4 marksDefine the terms 'globalization' and 'multinational corporations'.
- 2(b)9 marksOutline THREE ways in which the government can encourage the growth of MNCs in your country.
- 2(c)12 marksDiscuss THREE ways in which an increase in the number of MNCs in the Caribbean may impact businesses in the region.
- 3(a)(i)2 marksDefine the term: Authority
- 3(a)(ii)2 marksDefine the term: Responsibility
- 3(b)9 marksExplain THREE reasons why conflict may have arisen in the production department at Flamingo Fashion Enterprise.
- 3(c)12 marksDiscuss THREE ways in which Flamingo Fashion Enterprise can benefit from teamwork.
- 4(a)(i)2 marksDefine the leadership style: Autocratic
- 4(a)(ii)2 marksDefine the leadership style: Transformational
- 4(b)9 marksExplain ONE way in which an organization can use compensation to satisfy employees' needs at EACH level: (i) Security, (ii) Physiological, and (iii) Belongingness and Love.
- 4(c)12 marksDiscuss THREE ways in which an organization can benefit from on-the-job training for employees.
- 5(a)(i)6 marksCompute for EACH project the payback period.
- 5(a)(ii)9 marksCompute for EACH project the net present value.
- 5(b)2 marksSuggest to the company the best investment option based on the net present value method. State a reason to support your answer.
- 5(c)2 marksIdentify TWO possible sources of finance that Effective Solutions Ltd could consider for the investment project chosen.
- 5(d)6 marksOutline THREE factors that Effective Solutions Ltd should consider when choosing a source of finance for the project chosen.
- 6(a)(i)2 marksDefine the term 'ratio analysis'.
- 6(a)(ii)3 marksState THREE ways in which ratio analysis is important to businesses.
- 6(b)(i)5 marksCompute, correct to one decimal place, the Acid Test ratio for the year ended 30 June 2013, and explain what it indicates about the performance of the company.
- 6(b)(ii)5 marksCompute, correct to one decimal place, the Gearing Ratio for the year ended 30 June 2013, and explain what it indicates about the performance of the company.
- 6(b)(iii)5 marksCompute, correct to one decimal place, the Net Profit Margin for the year ended 30 June 2013, and explain what it indicates about the performance of the company.
- 6(b)(iv)5 marksCompute, correct to one decimal place, the Return on Capital or Equity for the year ended 30 June 2013, and explain what it indicates about the performance of the company.