QUESTIONS

SCENARIO 1

Joanne wants to set up a cosmetic store in her community and therefore needs to collect data to determine the feasibility of this type of business.

1. identify the 2 MAIN types of research data she would need to gather to establish the business

   1. Primary

   2. Secondary

2. state one source of each type of data found in 1)

   1. Primary Research - surveys

   2. Secondary Research - books

3. 4 reasons for starting a business

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

4. 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

5. 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

6. Define simple contract

   A simple contract a legally binding agreement where there is an offer and acceptance of terms, but no deed.

7. Describe 3 characteristics of a speciality contract

   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.

8. What is meant by offer & counteroffer

   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

9. Briefly explain 1 way a contract may be terminated

   Death

   If a party dies the contract will be void

SCENARIO 2

Dorris offers to sell Mark one of her cars. She intends to sell him the red 5 year old Tomato Excel hut Mark thinks she is selling him the yellow 3 year old Scotch Bonnet Deluxe, which he told Dorris he liked very much. Mark sends his mechanic to check the car. The mechanic returns and tells him that the car is in very good working condition. Mark pays Doris for the car by way of a manager’s cheque. However, when the car is delivered, it is the Tomato Excel instead of the Scotch Bonnet Deluxe. Mark is convinced Dorris tricked him and plans to sue her.

1. State the legal term used to describe the situation that has occurred between Dorris and Mark

   Misrepresentation

2. Suggest 3 actions that could have been taken by either Doris or Mark to prevent this situation

   1. Doris could have clearly communicated and documented the details of the car she intended to sell

   2. Mark could have requested and confirmed in writing the specific details of the car Dorris intended to sell.

   3. Mark could have insisted on personally inspecting the car or sending a trusted mechanic to verify it

3. Suggest two ways in which the situation could be settled without Mark taking legal action

   1. Mediation: Doris and Mark could’ve re}quested a neutral third party to help them come to a mutually acceptable agreement

   2. Negotiation: They could have negotiated to find a solution

SCENARIO 3

Cottage industries play an integral part in the economic development of Caribbean Economies

1. List 4 characteristics of cottage industries

Home based, mainly manual, small scale, uses local raw materials

2. State 2 /’**egs of products manufactured by cottage industries in Caribbean

   Artisinal jewelry, Handcrafted textiles

3. Outline one way stakeholders in the tourism industry may benefit from cottage production

   Tourism stakeholders benefit from cottage production by selling unique local, handcrafted souvenirs that attrach tourists and enhance their spending.

4. Differentiate between primary production and secondary production, 1 eg each

   Primary production: Refers to creation of raw materials or extraction of resources from the earth. EG: agriculture

   Secondary production: Conversion of raw materials into finished goods or services. Eg: clothing

5. Outline 1 benefit of increased capital on the growth of a business

   Increased capital means increased output of production

6. Explain 2 ways linkage industries assist in the economic development of a country

   • Creating more jobs & boosting good and service demand across sectors

   • Bring new tech and skills, enhancing business efficiency, leading to economic improvement

SECTION 4

1. Identify the two missing links in the distribution chain

   A) Manufacturer, B) Retailer

2. Describe the function of any two links in the distribution chain

   Manufacturer

   Creates and supplies goods or services to the market. Responsible for designing, developing and producing products.

   Wholesaler

   Wholesalers buy large quantities of goods from manufacturers and sell them in smaller amounts to retailers or businesses.

3. List four forms of technology utilized in logistics and supply chains

   CAD (Computer Aided Design), CAM (Computer Aided Manufacturing), Barcode Scanners, GPS tracking

4. Outline 2 benefits of IT to logistics and supply chain operations

   Increased accuracy

   Use of IT can improve accuracy of info distributed in supply chain operations, which can help a business to operate more smoothly

   Increased efficiency

   IT can perform automation of processes involved in logics and supply chains. This reduces time and energy spent on tasks

5. Alex is on the business of importing exotic food items for sev. local restaurants and hotels.

   5i) Identify 2 problems he may likely encounter when obtaining foods from his various distributors internationally

   Quality control issues and supply chain disruptions like natural disasters

   5ii) For each problem identified in (d) (i), outline one measure which could be implemented to reduce or prevent its occurence

   Quality control

   Supplier inspections of distributors to ensure high quality standards

   Supply Chain disruptions

   Increasing suppliers so theres multiple sourcing options

6. Define unemployment

   A state of being without a job or a source of income

7. List 3 types of unemployment

   Frictional, structural, cyclical

8. Outline 1 way a government can assist in reducing unemployment in its country

   Education and training programs to improve the skills of the workforce

9. State 3 reasons why Caribbean nationals migrate to countries outside their region

   Education, job opportunities, quality of life

10. Outline 1 negative effect on Caribbean countries when their citizens migrate

    Brain drain as theres a loss of skilled professionals moving from their home to another country

11. Define foreign investment

    The investment of funds by individuals/businesses of one country to assets or businesses located in another country

12. Explain two ways foreign investment could have a positive impact on Caribbean countries

    Job creation

    Transfer of tech and knowledge as foreign investors often bring new tech to the host country, impoving productivity and efficiency of industries

    Infrastructure Development