POB MOCK PAPER

identify the 2 MAIN types of research data she would need to gather to establish the business and an example

identify the 2 MAIN types of research data she would need to gather to establish the business and an example

1. Primary - survey

2. Secondary - books

4 reasons for starting a business

self fulfilment, Self-actualization, Financial Indepence, Full control over the business

Outline 3 steps Joanne must take in setting up her cosmetic business

1. Conceptualization - Forming a new business idea

2. research - To identify customers and what they want

3. identification of resources - Financial resources may come in the form of shares, loans or cash, and an entrepreneur needs to decide from where this finance will come.

4. create a business plan - The business plan will include facts and research about the

   proposed business.

5. accessing funds - This will consist of short-term finance, as well as longer-term finance to expand the business.

6. operation

Explain one benefit of short-term and long-term planning

• Short term:

  Allows a company to quickly adapt to changes in the market

• Long-term:

  Allows the company to set goals and develop strategies that guide its long term growth

Simple Contract & 3 characteristics

A simple contract is where there is an offer and acceptance of terms. It is legally binding, but the contract doesn’t have a deed.

1. This contract is written under a seal: This distinguishes it from a simple contract that has no seal

2. Involve large sums of money or considerable obligations and terms.

3. The contract is conclusive between two parties when it has been signed, sealed and delivered.

Offer

A proposal made by one party to another, establishing his or her willingness to enter into a legal binding agreement.

Counteroffer

Refers to a new proposal made by one party in response to an initial offer from another party

1 way contract is terminated

Death - If a party dies the contract will be void

Identification of Resources

Determining financial sources like shares or loans.

Simple Contract

Legally binding agreement with offer and acceptance but without a deed.

Specialty Contract Characteristics

Written under seal, involves significant obligations, and is conclusive when signed, sealed, and delivered.

Offer

Proposal indicating willingness to enter a legal agreement.

Counteroffer

New proposal made in response to an initial offer.

Termination of Contract

Contract becomes void upon the death of a party.

Misrepresentation

Legal term for the situation between Dorris and Mark.

Cottage Industries Characteristics

Home-based, manual, small scale, and use local raw materials.

Primary Production

Creation of raw materials like agriculture.

Secondary Production

Conversion of raw materials into finished goods like clothing.

Increased Capital Benefit

Leads to increased output and sales.

Linkage Industries

Create jobs, boost demand, bring new technologies, and enhance economic development.

Distribution Chain Missing Links

Manufacturer and Retailer.

Manufacturer Function

Designs, develops, and produces goods.

Wholesaler Function

Buys from manufacturers and sells to retailers in smaller quantities.

IT Benefits in Logistics

Increased accuracy and efficiency.

Problems in Obtaining Goods

Quality control issues and supply chain disruptions.

Unemployment

State of being without a job or income.

Types of Unemployment

Frictional, structural, cyclical.

Government Role in Reducing Unemployment

Education and training programs.

Reasons for Caribbean Migration

Education, job opportunities, quality of life.

Negative Effect of Migration

Brain drain due to skilled professionals leaving.

Foreign Investment

Investment in assets or businesses in another country.

Positive Impacts of Foreign Investment

Job creation and transfer of technology and knowledge.