rt & rest cove 01240032 | FORM TP 2023033 JANUARY 2023, CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE? EXAMINATION PRINCIPLES OF BUSINESS Paper 032 — General Proficiency I hour 15 minutes READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1. Answer ALL questions. 2. Write your answers in the spaces provided in this answer booklet. 3. Do NOT write in the margins. 4. Youare advised to take some time to read through the paper and plan your answers. 5. You may use a silent, non-programmable calculator to answer questions 6. 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. 7. Hyou 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, inelude the question part beside the answer, DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO. Copyright © 2022 Caribbean Examinations Council All rights reserved.T “] INSTRUCTIONS: The following case study contains information for a business plan. Read the case and answer the questions that follow each section. CASE STUDY ‘Tropicale Sunset Inn SECTION A James and Janet Bailey are twins who grew up on the island of Spice Ville in a ten-bedroom plantation style family home built on five acres of land, When their parents died, the twins decided to turn the family home into a small bed and breakfast business, which they named Tropicale Sunset Inn, Tropicale Sunset Inn is now fully operational and James and Janet serve as the general managers. They have hited five employees to assist them with the overall operations of the business: a front desk manager who is responsible for one housekeeper and a groundsman, and a cook who reports to the executive chef. Each staff member was required to sign a specialty contract before beginning work at the inn. OPERATIONAL PLAN 1. Establishing a Business State TWO reasons why the twins may have wanted to start the business, “@ marks) GO ON TO THE NEXT PAGE, 01240032/4/CSEC DO NOT WRITE IN THIS AREA DO.NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREADO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THis AREA rc 2, Internal Organizational Structure 5 ‘Complete the following organizational chart of the business by placing the remaining employees of Tropicale Sunset Inn in thei orrect positions. James and Janet Bailey General Managers @ (b) — Housekeeper (c) @ 01240032/9/CSEC 2023 i (4 marks) GO ON TO THE NEXT PAGE aa[- -6- TOE 3. Sources of Conflict Identify TWO sources of conflict which could arise in the business, (2 marks) DO NOT WRITE IN THIS AREA | 4, Contracts in Business Outline ONE reason why it was beneficial for the owners to issue specialty contracts to their employees. (@ marks) Total 10 marks ‘DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA GO ON TO THE NEXT PAGE 01240032/J/CSEC 2023DONOT WRITE IN THIS AREA aes DO NOT WRITE IN THIS AREA aie alae He EIN CIS AREA : g z r * 7 SECTION B Tropicale Sunset Inn isin a remote area, Janet and James knew that they would have to utilize marketing strategies if they were to reach their target market. A market research was conducted to find out about the needs of their potential customers. Based on the results of the research, Janet agreed that they should re- examine their finances and allocate more money towards the promotion of the business, The twins felt that priority should be given to a promotion campaign involving advertising via local TV stations, social media marketing via Facebook, Instagram and Tik Tok, and a few sales promotions for the first year of opera MARKETING PLAN 5. Target Market List THREE groups of customers who are the likely target audience of Tropicale Sunset Inn, G marks) 6. Market Research ‘Suggest TWO other reasons why Tropicale Sunset Inn would have conducted a market research, (2 marks) GO ON TO THE NEXT PAGE, 01240032/8/CSEC 2023 ie EUr 7. New Promotional Trends 4 Outline TWO benefits Tropicale Sunset Inn could gain by using social media platforms in its marketing campaign, DO NOT WRITE IN THIS AREA : & 2 & : : a ‘DO NOT WRITE IN THIS AREA GO ON TO THE NEXT PAGE, 01240032//CSEC 2023,PO NOT WKITEIN THES AREA | DONOT WRITE IN THIS AREA (pO NOT WRITE IN THISAREA cr 8 Promoting Sales 4 (a) Outline THREE roles that advertising could play in the promotion of Tropicale Sunset Inn, (6 marks) (b) List THREE sales promotion techniques that Tropicale Sunset Inn could use to boost sales, G marks) GO ON TO THE NEXT PAGE, a 01240032/J/CSEC 2023 [Ee[ “ 7 9, Terms of Sales E Identify TWO terms of sales the owners could implement which the customers of Tropicale ‘ Sunset Inn would find favourable. wie sn (@ marks) Total 20 marks IN THIS AREA MRE GO ON TO THE NEXT PAGE a 01240032/CSEC 2023DO NOT WUTE IN THIS AREA DO NOT WRITE IN THIS AREA TEIN THIS ARES r " 7 SECTION C After five years of operation, Janet and James decided to renovate the Tropicale Sunset Inn and beautify its environment to make ita four-star property. They agreed to use a portion of their savings and to obtain a loan from a local bank to finance the required upgrades. While organizing their finances, they were informed that in addition to taxes on their profits, they were required to pay a newly introduced value- added tax (VAT) of 8% on every occupied room at the \n. This new government tax would have quite an impact on the profitability of the firm but the twins believed that the planned expansion could provide a cushion for the increased expense. FINANCIAL PLAN 10. Envi 1. imental Protection Suggest TWO government environmental regulations with which the firm should comply when undertaking its beautification plans. (2 marks) ‘Taxation State TWO reasons why the government charges taxes, such as the 8% VAT, to businesses such as Tropicale Sunset Inn. GO ON TO THE NEXT PAGE 01240032/J/CSEC 202312, ince List THREE financial institutions, other than the local bank, from which the owners could obtain low interest funding to finance the renovation of Tropicale Sunset Inn. GO ON TO THE NEXT PAGE, 01240032/4/CSEC 2023 L Ne oH | DO Not WRITE IN THIS tae T WRITE IN THIS AREA DONOTDONO WRAL IN TS REA / & 5 & e 2 3 = = DO NOT WRITE IN THIS AREA r 1B. -13- ~] Executive Summary Describe the overall business operation of Tropicale Sunset Inn in ONE paragraph, including relevant information from the THREE main areas of the business plan. @ marks) Total 10 marks END OF TEST IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST. 01240032/J/CSEC 2023