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FOFTIVI T'P 2007243 ";,;;"TJiJlff;tldrrr6 TESTCI ,DE02233010
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\+- c.,'\RTBBEAN
ADVANCED PROFICIENCY
ffiour L
BXAMINATION
I\,IANAGEMENT OF BUSINESS

Unit2_paper0l
90 min utes

' READ THE.FOLLOWING DIRECTIONS

CAREFULL.
In a(id ion to th is rest booklet, you
ir
shou rd have an answer sheet.
Each item in th is test has fou
r sue
abourtoanswera"aa".ro",""rrrlfr".i,i9.".l:;ff'.-"*d(A),(B),(c).(D) R.rdeachrrenrrouare
t,l. \r.:1 ) orrr a-nswer sh eet, fi nd the n u m ber rvh
ich corresponds to vol
th! san,e tefter as the ansrver you ha," ide the space ha,, ,n3
";;;;;. ;;[ "il:ffi:n:;Hs!-
Sarnple ltem

For whiqfi glrjE.fthe followingrypes production

of ilpfsguc]Lde-qiSD_ofpirar..ount
imponance?

(A) .tob Sal !s4!i!_"1

(B) Barch
(C) Flow
9G)@ :-
(D) Mass

l-L e trest an swer to th .,.rob.-.

is item is so ansrver space (A) has been blacl(enr
l f l,r | \,i ant to change you r ansrr
er. be sure to erase
)/our old ans\rer conr p lete. I and fi l! in ., .:.:r.r,: ...

rl' rcr, yuu aretoId tobegin,rum*

ani\veranit.'".o-iti;;;;;;;;":1fl ,u can- lfy*ucatnC*,
TjJ::::!t;:":"11..1n..ft :1;:r rrderirenr btes
Ycu rrav do any rough \vork jn
thrs booklet.
lh is i.esr consists of45 item yoiJ
s. will have 90 minutes to ansrver inern,
Ycr,'ray use silenl non_programnable
calcu lators to anr.n,",
u.r,,.a., n
Dc rr r be concerrcd rhar rh e ans rretsheetprovidesspacesfcrrn:::::..,.s-.-
th js r =si.
l l..-j NOT TUR\ f :
c sc.
CopyfightO2006 Caribbean Exant rnairons
Coi;;.,c ij. r_
A Il rights rcserr ed.
 l Which one of rhe foll.owins
Iorecasting technique? rs NOT 6.

(A) Jury. of experts for measuring q Lraliq,,

(B) Moving average 's hygiene
(c) uonsumer surveys
iD) Lonlormace to qual:ty s srytflor ior lhe quality
conrror
.
€eFa-i- ?ni
,'n:1r;:3s. 11, for improving worker
' diagram, an activity
l'l_i ":r*,ork
consunies NEITHER time NOR
thar
Known as a
,".";.;;;;
.yri"nr is suitable
(A) rail of bread at the loca I
(B) floar
(C) mode
)
{ L) dumm_v-

3.
of ro assist in t
l-]t,..:::
procuctton of^compurers
designs and drawins< f^. .
rn rhe manufacturing
proces! i, k;:;;;; diagram below

iA-) computer aided design

compurer aided muni.
:{ fo",urin o
c.:mpurer numerically
controlIc]
'll . -- mpuler integrated Rau,materials
manufacturinq
t/
i
*n.,eby goods are inspected
l":,:j:::::
c':ure [here are no defects io-
is kaown as
(..1 ) quality checks
(F ]at r. a faciiir),is
) quality control in
{.,. ) defect checks
(Ll) qualiry circles

3 A t€rm used for describinc

,
eLralyr:cal techniq;;;;:[;i;;
MOST effi cient ul;;; ;il:i:
(.... i vrork study 'lroduced an inventorv
/a\ : materiais ar.e scheduled
method srudy
(c) work measurement thty are needed on
(D) screntific management h of the followine
is Mr Jay us ing?

il??110t
0/CAPE2007
.;j
 :a

-3-
Item l0 refers to the
diagram bclorv.
__A. __A___f ___Marimumsrock ,cl

e - - Re-order level

- - Buffer stock levei

aJ)

Weetis
I 0. The iead rime for pet
fooos rs

2 weeks
3 weeks
'.4 weeks

lrems ll - 13 refe, to the diag;a-rn beto\^.

1 A
/a-:'.''
---i-'._\

;! fhe critical path ir.

lJ- fh-.r,,-^.:
. .,"
(A] A, B. E, C
duun or
"u, th ltical path ;s
(Br A, C, E, (i (A ) to days
i: A, B. D. t-. c (B) r2 da!,s
I.i A.C.D,F.G
!c)
(D)
t4 (ta),s
l6 dar s

l-he broken line on

the nent,orr(,epresents
a

(A
''"'':"'::;
) tarl
{Dl oead
rC: .
node
1L-;; uurilf]t).

t
 .
Items !4 - 15 refer to the diagram below.
18. Which one of thr ollo\^,ing is NOT :.
a
cnaractenstic ofa s vice?

(A) Unifonnity
(B) Intangibiliry
(c) Lnseparabilr
(D) Perishabilit'

il
19. Demand is said to b rrice elastic if
(A) rt rs sensiliv o changes in price
(B) rt is sensitiv o charges in demand
Order size (c) pr'rce has ve little effect on demand
(D) demand is nsittve lo changes in . a).

hmme "t
The
It
!t
.F
{
20. A producer rvho d berately restricts the
number ofdealers is ld to be implementing

fD) (A) a multiple c rutel strategy

(B) a market dis bution strategy
(C) a selective ( dbution strateg)'
Tbe *cdg;$girg cost is (D) an intensive stribution strategy

{A} t - '
.l
(B) iI . - --21
Lhe e-nd-users of 1.,-,6" u-6 sen,ices are
{ \-; t known as

(A) buyers
'I-ne (B) customers
ever; member (c) .consumers
of the a Known chance of (D) producers
selectrcn

(At convenierrce samoling "r)

Whrch one of the fir wing factors would a
1ts: rroDabrhty sanpling
manufacturer of uni
ri non-rardem sarnpling
to consider when de
rns be LEAST )ike ly
ii,r) non-probability sampl in g ning the uniforms?

(A) Ase
Dividing a market into .jiscretc
groups of
(B) Cender
cuslotners is referred lo as (C) Schoot
(D) Education level
(.
A.: Ciffirsion
tBl s€gmentation
(cl concehtration
iilr diilerentiation

GO ON Tr '[rF \rr:.,--r r,,

^-
 m anu
factures proaucts
lnY^:"lT_.1.,and for 28. Which
,lil;ill: l""l,
urierenl products rs
feet rhesum ofalt the
segmenta
describes a loy ma
rn
straregy BEST
called the Itacturer who tatgets
cnrtclren under I2 y,
rs oi age? .
(A) cash cow
producr nix (A) Niche mark,
,:1
\!,, ptoduct line ,'D \
Micro-mark, Ing
ng

(D) boston matrix (c) Differentiat, marketing

(D) Undifferentr ed marketing

ro inuoducc a new
Y:P^::.:_1'. Co*ing line Items 29 - 30 refer
rc
ilff :11*,::x,",*":yiJffi ffi"fl;.';; re following diagram.

perceived value
11] price skrmming
):l cost plus pricing
):{
\LJ ) penetration pricing
-.E : -D
ira

i::'"'i"J;:#"',h1';:::rr on clain se rasr

'^.j theyadd rc the pncc ofrbc

(B) lrms cannot identify with eOod --_---.--
(c) rbL
cqeEte as the rnvisrble Time
(D) Iley hand
oUry.-riv1s are differenr
1,eI
Oose of rhe firm
from 29. Which stage of the
fornt D? -\- DEJ I describes

zo (A) Decline
of prumbing suppries
li"j:lTlllr:*rcr
!L,1.r r lKet) to advenise
ils products
is (B) Stabiliry
(c) 142n:n'ty
(A) on relevisicn (D) Saturation
(B) on rhc intemet
by word of mourh
i:lu )
I ln the local newspapcr 30. Which one of the
foll rrng BEST cpfidoi
pornr D?

7'.7 .
stag-- of the decision
(al Market is
i:lt:l
tne consumer decide
wl"tt"-i
process wiil (B)' Competitors
or nor
purchase." i,.;;;;. ffi;:T' to (c)
(D)
Product featu
Substitute
Eva ji.:arion of alrematives
l1] posr purchase
',:). behaviour
search for alremarives
::1
\D) Purchase decision
 '6
li \il-,::h one ofrhe following
BEST describes
: ::.3:actensric of a successful _r 6. \i&i;h ooe ..: rhe ; c\\ rng BEST defines
entrepreneui? 'icar
,
a
lce.ra:iee s: me'?

Avoids dec ision nraking , loan balances

::1 rnJoys working for orhers
l:/
( u) Takes few risks as possible
:ainst bad debrs
'loan and share capital
ance operating activities

JI Which one of the following

can be rdenrified
as a benefit of a franchise 3?_
agrecment to a rr rs ehoosing a form of
tranchisee? IOR factors should
be

(A) Skilled rvorkforce

(B) High market share be employed I
paymenr
!:i of royalties 'ility be limited
u-J ) A recognised product ment and control ofthe

noney rs needed to get

JJ The. process ol removing
festnctrons on
rorergn trade is referred
to as
v
(A) dumping only
(B) globaiisarion only
(C) tradeliberalisation n lJ"
(D) tradeprotectionism

Jd rhe I f,t\ lng resuirs is MOST

r ne accounts of c."Uit*r *a fo,rna in tt . occur from acquiring a
" ss \Ylth proven success
{:) cash book
a:::
sales ledger
(c) general ledger ,flo*'
(D) purchases ledger
$ profir
'captiai _
Jtr +' sran-up risk
Penelration pricing
refers to

(A) add ing a percenuge

ofprofits to the le sources
total cost
rR \ following rhe pricing
int
staregies ofthe
,.r4r r\ct teaoer
(c) charging more rhan
competitors for mih'members
a status product
(D) :otnmercial
__.4"!vr !rat uiltu(
bank
,.1:.'n* the price of a producr .
ro oir rhe stocl< erchange
anracl customers
 4fi -i'
ln]"i on. of th. follo*;,
- of globalizationi
'""''"'tn8 is NoT ar impact
Item 43 refers
to rl diagram below.
Movement of
)f I rncrease in
labour
;;{ comperjtion WHICH USINESS?
rn^crease in inreresr rares
,;i /.,eptetion of Enter
natural rEsoutces t€r
J----------r
-7 Door I I
tl
; ongoine
nuy HF
#"';.',{Hl';*lfi":,i.;;:",rxilJ ; "n gf
businesi
J I
l1-
l^ ,
/^l ,._, |
ro oa liza rion
,,il Marker research
uconcmieiof
);i
\v.t xesearch and
scate Which of the al
development entrepreneur
open
a product
nol o'ffer,
ln great demand ;',::.',illt,".,.;,I
Which c,ne of rh- r^,,
.uu.". ,hu, is a primary (A) I onlv
l
i^t^---. ,,nutt';,,.i::'_"_*,"c
rntormalion
- '-" uuslnesses
aboul cu .
-*" <,
can use
r
to gather J:l rani:
--eru,,crs / - Prospective \Ll 2 onlv
...
(D) 3 onli
(A) S urveys
gr (B) Newspapers
(c) &Qt{3-4! refer the
];adehagazines---'- following scenario.
!: (D) . -.Sratistieel:ffi
Mrs Chang has
restaurant.
r, :n y opened a small
theAt ro.ot the first
operations she week of
reali s,rnat she does
suttrcient cash not have
to p ner two workers.
fhe scenario
above lusbates a
(A) high gearin
.R \ 'osttion
iow rate of
(c) ock turn
iow 1s1gn-l
(D) investment
rvorking ca

.a ). The BEST rvay

fc,:
ner sltuation
is to ,,

(A)
lR r

(c)
(D)
F YOU FIN,ISHBEFORE
TN{E IS CALLED, C.IIECK
J\TIilST'EST.