Professional Documents
Culture Documents
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2l MAY2009 (p.m.)
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INSTRUCTIONS TO CANDIDATES
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1. This paper consists of THREE sections.
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2. Each section consists of TWO questions.
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4. Each question is worth a total of 25 marks.
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SECTION A
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MODT'LE 1 I
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Answer ONE question from this section.
1. Kevin James, a tailor, is contemplating whether to remain as a sole trader or to form a private I
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limited company.
(a) Explain to Kevin TWO advantages and TWO disadvantages that a private limited
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company has over a sole trader. [12 marks]
(b) Discuss THREE ways in which a change in the economic system of the country from a
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mixed economy to a planned economy could affect Kevin's decision to form a private il
limited company. [13 marks]
Total25 marks ti
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2. Discuss THREE benefits and THREE drawbacks that Caribbean countries could experience L
with multinationals operating in their territories. [25 marks]
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Total25 marks t
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SECTION B
MODULE 2
MANAGEMENT OF PEOPLE
Totat 25 marks
(a) Explain FOI-IR reasons why employees resist change. [12 marks]
(b) Discuss THREE methods that can be used to address resistance to change.
[13 marks]
Total25 marks
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SECTION C i
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MODTJLE 3
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Answer ONE question from this section. t
Identify the MOST suitable source of finance for EACH of the above areas of the
business. For EACH soruce identified, explain why it is the MOST suitable.
[20 marks]
Total25 marks
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o2t33020tcAPE 2009
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.5-
6. ThefollowingistheBalanceSheetofEastwoodHardwareLtd.asatDecember3l,2003. Study
the Balance Sheet and answer the questions that follow.
The following items have been omitted from the Balance Sheet of Eastwood Hardware Ltd.
(a) Identify the appropriate sub-heading under which EACH of the omitted items would appear in
the Balance Sheet of Eastwood Hardware Ltd. [ 5 marks]
(b) (i) Outline the MAIN difference between performance ratio and liquidity ratio. l-
[ 3 marks]
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(ii) Identify ONE stakeholder who will be interested in EACH type of ratio. T-l
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2 marks] I
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(c) Calculate the following ratios for Eastwood Hardware Ltd. and explain the implication of EACH (-1
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ratio. tlti
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(iii) Gearing Ratio [L5 marks] I
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Total25 marks
END OF TEST
o2r33020tcAPE 2009