T “] CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN ADVANCED PROFICIENCY EXAMINATION" SO A 1802160020 FILL IN ALL THE INFORMATION REQUESTED CLEARLY IN CAPITAL LETTERS. vest CODE |o]2]1]6]o]o}2]o SUBJECT __ ENTREPRENEURSHIP— UNIT 1 = Paper 02 PROFICIENCY _ ADVANCED REGISTRATION NUMBER SCHOOL/CENTRE NUMBER NAME OF SCHOOL/CENTRE CANDIDATE’S FULL NAME (FIRST, MIDDLE, LAST) DATE OF BIRTH SIGNATURE L L daten0201{A 000 0216002002i S rest cove 02160020 | FORM TP 2018199 MAY/UNE 2018 CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN ADVANCED PROFICIENCY EXAMINATION” ENTREPRENEURSHIP ENTREPRENEURIAL THEORY ‘UNIT 1 - Paper 02 2 hours and 45 minutes READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1, This paper consists of SIX mini-case scenarios, TWO from EACH module. 2. Answer ALL questions. 3. Write your answers in the spaces provided in this booklet. 4, Do NOT write in the margins. 5. If you need to rewrite any answer and there is not enough space to do so on the original page, you must use the extra lined page(s) provided at the back of this booklet. Remember to draw a line through your original answer. 6, Ifyou use the extra page(s) you MUST write the question number clearly in the box provided at the top of the extra page(s) and, where relevant, include the question part beside the answer. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO. Copyright © 2016 Caribbean Examinations Council All rights reserved. [_ cotsonocare a4 0 | 0216002003r “ 7 INSTRUCTION: Read EACH mini-case and answer the questions that follow. MODULE 1: ENTREPRENEURIAL MINDSET Case 1: Live Your Dream Mark always desired to have his own business upon graduating from university. He learnt that he would need to develop a good strategy and business plan, be able to read financial statements and know the business in depth. One friend told him that he does not have enough luck or money. His father told him that it is not easy, and that ‘we are not born in our family to be entrepreneurs’. Despite this, Mark knew that he had to persevere and remain optimistic , as with proper planning and an understanding of the market gained through market research, he could be successful. He was aware that this would require understanding of how to network and work with people of different backgrounds and cultures. No matter the obstacles, he decided he would maintain his vision and decide on the risks he would be willing to take to fulfil his dreams. 1. (@)_List FOUR characteristics of an entrepreneur that are implied in the case, [4 marks} (6) List FIVE myths of entrepreneurship. 15 marks] GO ON TO THE NEXT PAGE 02160020/CAPE 2018 L {OO _] 0216002004 SF WRITE Ra NAT werre nN Tie sows Ta NOT WRITE IN THIS ARR AA Ning aw rie IN FTO aR EDr “ 7 (©) Explain why Mark should learn to do the following: : (@__ Develop a business plan a J : 5 z S 5 4 (ii) Manage finances 1 = s Ss fs ES = = Ss g 1 | [6 marks] Total 15 marks i i & = a 5 z 8 60 0V T0 THENEXTPAGE : 02160020/CAPE 2018 I L 0216002005 | eer Case 2: Innovative Entry reese 7 Mrs Williams has owned and operated a small fitness gym informally for less than a year. She wants to formalize and upgrade her offerings to include online bookings for customers, a fully air conditioned complex, computerized equipment and personalized nutrition plans for all customers. She knows there are risks when innovating and that the innovation must focus on satisfying the needs of customers. Therefore, keeping information on their likes and dislikes of customers is crucial. She decides that data mining would be useful in tracking the changing demands of her customers. 2 @ Using evidence from the case, explain the TWO types of entrepreneurs that Mrs Williams can be classified as. 16 marks} GO ON TO THE NEXT PAGE, 02160020/CAPE 2018 L SOOO CE 0 _| 0216002006 DO NOT WRITE IN THIS AREA DONOT WRITE IN THISAREA DANOT WRITE IN THIS AREADO NOT WRITEIN THIS ARES DO NOT WRITE IN: THIS AREA Sf DONOTIFRITE IN THIS AREA: r (b) © -7- 7 Outline THREE pieces of evidence from the case that revealed that Mrs Williams was thinking innovatively. [6 marks} Given that Mrs Williams is focusing on customer satisfaction, list THREE elements relating, to cultural diversity that she MUST take into consideration when doing business. [3 marl Total 15 marks GO ON TO THE NEXT PAGE, 02160020/CAPE 2018 CEA WT | 0216002007i 8. MODULE 2: THE ENTREPRENEURIAL PROCESS Case 3: Processes for Success Daniel always wanted to establish his enterprise, but was struggling to generate a solid business idea. He decided to consult experts, including his uncle, who owned several business ventures. Additionally, he sought to discuss his idea with a selected group of his friends who are businessmen, He learnt that he would need a business location, marketing and sales expertise, as well as reliable and consistent distribution channels to move the finished products to the customers. He was beginning to understand that this was 1 process that require consistent monitoring from idea to harvesting. 3. (@)__ Name TWO methods which Daniel intended to use to generate his ideas. (>) List FOUR steps in the entrepreneurial process. GO ON TO THE NEXT PAGE, 02160020/CAPE 2018 L O00 _] 0216002008 ee DO NOT WRITE IN THIS AREA TIN THISAREA | DO NOT WRITE. DONOT WRITE IN THIS AREAr * 7 (©) Explain why it is important for Daniel to secure EACH of the following types of expertise. (Management expertise DO NOT WRITE IN THIS AREA Gi) Sales expertise Gili) Marketing expertise DO NOT WRITE IN THIS AREA © [9 marks] Total 15 marks DONO WRITE IN THIS AREA GO ON TO THE NEXT PAGE 02160020/CAPE 2018 | L on _lr “. 7 Case 4: Change is the Only Constant ‘Naemah had inherited some money from her grandfather who was a successful entrepreneur. She thought that she could follow in her grandfather’s footsteps and use the inheritance for financing a venture. However, she struggled with developing a viable business concept. The idea of a courier service business was good as the opportunity existed and she had access to some capital. She recognized that she would need more | and would have to access it from either internal or external sources. She was told by her friend Pryah that she should not worry about a concept, as society and consumer demands are always changing. Change is the only constant and therein lies the source of concept development. 4. (a) Identify THREE sources of business concepts that could guide Naemah’s product/service offering, {3 marks} (>) Using an example describe EACH of the following steps in the entrepreneurial process. (Identifying resources Gi) Implementing and managing resources [6 marks] GO ON TO THE NEXT PAGE 02160020/CAPE 2018 L ORI 8 _| 0216002010 DO NOT WRITE IN THISAREA “DONOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA |RO NOT WRITEIN THIS AREA DO NOT WRITE IN| THIS AREA: 1 BO NOE WHITE IN THIS AREA r “H 7 © @)_List FOUR external sources that Naemah could seek out for additional funding, [4 marks] (ii) Outline ONE disadvantage of accessing capital from an external source. Total 15 marks GO ON TO THE NEXT PAGE 02160020/CAPE 2018 L CAO 8 _| 0216002011 teer -12- ~] MODULE 3: CREATIVITY AND INNOVATION, Case 5: Branded Errol grew up in a community where playing the steel pan was almost gene! . He wanted to create a new kind of pan but found it difficult to do so. He decided that he would focus on the aesthetics of the pan. He would use the pan for decorative art and as an educational tool, He recognized that as a decorative art, some process innovation would be needed to prevent the decoration from fading. He thought that conce this was done the product would be a success. He knew that this generation of youths wanted more colour and statements, but the same sound. To encourage innovation, the government had built a new cultural centre, provided incentives for innovation, relaxed ineffective regulations and developed good policies that support innovation, (a) Explain why branding rather than patenting would be the BEST approach for Errol to use, [5 marks} GO ON TO THE NEXT PAGE, 02160020/CAPE 2018 CNA _| 0216002012 ‘DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA’ DA NOT WRITE IN THIS AREAr “0 7 (b) Outline THREE sources of innovation implied in the case. DG NOT HRUTE IN: ES AREA [6 marks} (©) Outline how EACH of the following measures supports innovation: (i) Incentives DO NOT WRITE TN THIS:AREA (ii) Good policy [4 marks} Total 15 marks ONO REE TN EES ARES | GO ON TO THE NEXT PAGE | 02160020/CAPE 2018 L LN 0216002013r “ 7 Case 6: Process is Key Maria wanted to find an efficient and innovative way of converting waste to energy. In recent times, some a organizations had developed several produets and improved their processes of managing waste, while a others had repositioned existing products or tried to change the way in which persons thought about waste = management. Maria however, was interested in developing a concept of zero waste for energy processes. = She thought that the innovation would need to be protected once the concept was developed. a 6. (@)__List the FOUR types of innovation relating to the 4 P's that are implied in the case. : Ss 2 2 a ~~ [4 marks] E : s = : & E 5 & s 2 i : 2 t : : ; GO ON TO THE NEXT PAGE 02160020/CAPE 2018 L NAA 0 _| 0216002014DS NOT RITE EN THES AREA ERO NGL WRILE LN ERIS AREA SE ie eerie cc aera eee: -15- “7 (©) Explain THREE types of innovation listed in (a) that Maria could explore, [9 marks} (©) Outline why a trade secret should be used to protect Maria’s innovation. [2 marks} Total 15 marks END OF TEST IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST. 02160020/CAPE 2018 INO _| 0216002015rc -16- EXTRA SPACE 7 Ifyou use this extra page, you MUST write the question number clearly in the box provided. Question No. Rite 0216002016 02160020/CAPE 2018 _ TU NOT WRITE IN THIS AREA ei TRA NAT WRITP IN THIS ARPA RA WAT Wore ii Tare DEAEDO NOT WAILE IN THES AREA: DOINGT WRITE LN FHIS AREA befor didstes tddubaitrha diate acaalisdactofel rc -17- 7] EXTRA SPACE, Ifyou use this extra page, you MUST write the question number clearly in the box provided. Question No. 02160020/CAPE 2018 Ht mt 0216002017 _Irc -18- EXTRASPACE, 4 Ifyou use this extra page, you MUST write the question number clearly in the box provided. Question No. pes 0216002018 (02160020/CAPE 2018 | ‘DO NOT WRITE IN THIS AREA Und NAT WRITE IN THIS AREA RAWARneree ml Tove WeedAQ 001 0216002019Kea CANDIDATE’S RECEIPT ' INSTRUCTIONS TO CANDIDATE: 1, Fill in all the information requested clearly in capital letters. Testcope: |0}2]1}6}o}o}|2]o SUBJECT: ENTREPRENEURSHIP — UNIT | — Paper 02 PROFICIENCY: ADVANCED REGISTRATION NUMBER: FULL NAME: (BLOCK LETTERS) Signature Date: 2. Ensure that this slip is detached by the Supervisor or Invigi hand in this booklet. tor and given to you when you 3. Keep it ina safe place until you have received your results. es INSTRUCTION TO SUPERVISOR/INVIGILATOI Sign the declaration below, detach this slip and hand it to the candidate as his/her receipt for this booklet collected by you. Thereby acknowledge receipt of the candidate’s booklet for the examination stated above. Signature: ‘Supervisor/invigilator Date: 0216002020