CAPE Management of Business Syllabus - Rev Oct 2022

APPENDIX III
APPENDIX III
APPENDIX III
APPENDIX III
APPENDIX III
Caribbean Advanced
APPENDIX III
Proficiency Examination®
APPENDIX III
APPENDIX III
APPENDIX III
SYLLABUS APPENDIX III
APPENDIX III
MANAGEMENT OF BUSINESS APPENDIX III
APPENDIX III
CXC A24/U2/22 APPENDIX III
APPENDIX III
APPENDIX III
Effective for examinations from May–June 2024
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Correspondence related to the syllabus should be addressed to:
The Pro-Registrar
Caribbean Examinations Council
Caenwood Centre
37 Arnold Road, Kingston 5, Jamaica
Telephone Number: + 1 (876) 630-5200

Facsimile Number: + 1 (876) 967-4972
E-mail Address: [email protected]
Website: www.cxc.org
Copyright ©2022 by Caribbean Examinations Council

Prince Road, Pine Plantation Road, St Michael BB11091
CXC A24/U2/22 www.cxc.org

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Contents
INTRODUCTION ........................................................................................................................................ i
RATIONALE .............................................................................................................................................. 1
AIMS ........................................................................................................................................................ 1
SKILLS AND ABILITIES TO BE ASSESSED ................................................................................................... 2
STRUCTURE OF THE SYLLABUS ................................................................................................................ 3
UNIT 1: MANAGEMENT PRINCIPLES AND PROCESSES ........................................................................... 4
MODULE 1: BUSINESS AND ITS ENVIRONMENT ........................................................................ 4

MODULE 2: THE MANAGEMENT OF PEOPLE ........................................................................... 10
MODULE 3: BUSINESS FINANCE AND FINANCIAL DECISION-MAKING ..................................... 18
UNIT 2: APPLICATIONS IN MANAGEMENT ........................................................................................... 24
MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT................................................ 24

MODULE 2: FUNDAMENTALS OF MARKETING ....................................................................... 32
MODULE 3: SMALL BUSINESS MANAGEMENT........................................................................ 38
OUTLINE OF ASSESSMENT .................................................................................................................... 44
REGULATIONS FOR PRIVATE CANDIDATES ........................................................................................... 55
REGULATIONS FOR RESIT CANDIDATES ................................................................................................ 55
ASSESSMENT GRID ................................................................................................................................ 55
APPENDIX I: GLOSSARY ......................................................................................................................... 57

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NOTE TO TEACHERS AND LEARNERS
This document CXC A24/U2/22 replaces CXC A24/U2/12 issued in 2012.
Please note that the syllabus has been revised and amendments are indicated by italics.
First issued 2003

Revised 2012
Amended 2016
Revised 2022
Please check the website www.cxc.org for updates on CXC®’s syllabuses.
Please access relevant curated resources to support teaching and learning of the syllabus at
https://learninghub.cxc.org/
For access to short courses, training opportunities and teacher orientation webinars and workshops
go to our Learning Institute at https://cxclearninginstitute.org/
PLEASE NOTE
This icon is used throughout the syllabus to represent key features which teachers and
learners may find useful.

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Introduction
T he Caribbean Advanced Proficiency Examination (CAPE®) is designed to provide certification of the

academic, vocational and technical achievement of students in the Caribbean who, having completed
a minimum of five years of secondary education, wish to further their studies. The examinations address
the skills and knowledge acquired by students under a flexible and articulated system where subjects are
organised in 1-Unit or 2-Unit courses with each Unit containing three Modules. Subjects examined under
CAPE® may be studied concurrently or singly.
The Caribbean Examinations Council® (CXC®) offers three types of certification at the CAPE® level. The
first is the award of a certificate showing each CAPE® Unit completed. The second is the CAPE®
Diploma, awarded to candidates who have satisfactorily completed at least six Units, including
Caribbean Studies. The third is the CXC® Associate Degree, awarded for the satisfactory completion of
a prescribed cluster of ten CAPE® Units including Caribbean Studies, Communication Studies and
Integrated Mathematics. Integrated Mathematics is not a requirement for the CXC® Associate Degree
in Mathematics. The complete list of Associate Degrees may be found in the CXC® Associate Degree
Handbook.
For the CAPE® Diploma and the CXC® Associate Degree, candidates must complete the cluster of
required Units within a maximum period of five years. To be eligible for a CXC® Associate Degree, the
educational institution presenting the candidates for the award, must select the Associate Degree of
choice at the time of registration at the sitting (year) the candidates are expected to qualify for the
award. Candidates will not be awarded an Associate Degree for which they were not registered.
CXC A24/U2/22 i www.cxc.org

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Management of Business Syllabus
 RATIONALE
The dynamic environment within which businesses operate today present both challenges and
opportunities for business leaders. The growth in economic and social needs in most economies also
constitutes another area of great challenge. As students proceed beyond the Caribbean Secondary
Education Certificate (CSEC®) level, in pursuit of their career goals, they must be cognisant of the
changing socio-economic climate, technological changes and sustainability concerns within which
modern businesses operate.
Management of Business students must understand the principles that govern the human and
operational interactions within a technologically driven business environment and must be aware of
the factors that influence and drive business decisions. Moreover, it is imperative that students possess
a comprehensive understanding of the markets in the region in addition to knowledge of the global
marketplace.
The CAPE® Management of Business syllabus provides a good foundation for further study of Business
and other related disciplines at the tertiary level. It also provides opportunities for students to function
in existing business organisations and as successful entrepreneurs. Students will acquire the requisite
knowledge and understanding of management principles and concepts, sustainable business
practices, and skills required to address managerial problems and the challenges faced by businesses.
Students are offered the opportunity to acquire a variety of experiences in the fundamentals of
Business Management through the use of learner-centered teaching and assessment approaches.
Additionally, the syllabus will inculcate the tenets of the Ideal Caribbean Person as articulated by the
CARICOM Heads of Government. That is, an individual who demonstrates a positive work ethic, and
values and displays the creative imagination in its various manifestations and nurtures its
development in the economic and entrepreneurial spheres. Such a person will question the beliefs and
practices of past and present and bring this to bear on the innovative application of science and
technology to problem solving, value teamwork, demonstrate independent and critical thinking and a
strong appreciation of moral issues including responsibility for and accountability to self and
community. Students are therefore encouraged to adopt appropriate and acceptable attitudes, values
and ethical practices relating to business activities. Moreover, in keeping with UNESCO pillars of
learning, on completion of this course of study, students will learn to know, learn to do, learn to be,
learn to live together and learn to transform themselves and society, having been exposed to the
values implicit within human rights, and democratic principles among others.
 AIMS
The syllabus aims to:
1. develop an understanding of the integrated nature of business organisations and the dynamic
environment in which they operate;
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2. develop an awareness of how global issues impact the development and strategic
management of successful organisations with special reference to the Caribbean;
3. provide basic information on principles, legal issues, and practices of modern management
with special reference to the Caribbean;
4. develop critical thinking skills necessary to pursue further studies and career development;
5. develop an understanding of the importance of the strategic management of organisations;
6. develop effective communication skills that support organisational success;
7. develop, interpret and present numerical, graphical and verbal data;
8. develop an appreciation of the value of utilising technologies in managing organisations;
9. provide opportunities to develop the knowledge, skills, aptitude and abilities needed to
become successful entrepreneurs and small business owners or managers; and,
10. develop attitudes, values, and ethical practices related to business and good corporate
citizenship.
 SKILLS AND ABILITIES TO BE ASSESSED

The skills that students are expected to have developed on completion of this syllabus have been
grouped under three main headings:
1. Knowledge and Comprehension;
2. Application and Analysis; and,
3. Synthesis and Evaluation.
Knowledge and Comprehension
The ability to:
1. define/recall the basic terms, concepts and principles in management of business; and,
2. demonstrate understanding of concepts, theories and the diverse managerial functions and
roles commonly applied or used in the management of business.
Application and Analysis
The ability to:
1. apply knowledge and understanding of facts, theories and concepts to problems and issues in
a variety of familiar and unfamiliar business situations and contexts;

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2. distinguish among various components of business and its environment; and,
3. analyse complex issues and situations and searching for causes, impact/consequences.
Synthesis and Evaluation
The ability to address business problems issues and situations by:
1. evaluating complex issues and situations based on evidence, argument and discussion in order
to make reasoned judgments, present measured conclusions and make recommendations for
action and implementation; and,
2. using appropriate methods and techniques to create and logically present relevant solutions
to problems.
 STRUCTURE OF THE SYLLABUS

The syllabus is divided into two (2) Units. Each Unit comprises three Modules. Each Module requires
fifty (50) hours of instruction.
Unit 1: Management Principles and Processes
Module 1 - Business and its Environment

Module 2 - The Management of People
Module 3 - Business Finance and Financial Decision-Making
Unit 2: Application in Management
Module 1 - Production and Operations Management

Module 2 - Fundamentals of Marketing
Module 3 - Small Business Management

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 UNIT 1: MANAGEMENT PRINCIPLES AND PROCESSES

MODULE 1: BUSINESS AND ITS ENVIRONMENT
GENERAL OBJECTIVES
On completion of this Module, students should:
1. understand the nature and scope of business and its role in society;
2. understand the characteristics and relative advantages and disadvantages of various forms of
legal business organisations;
3. appreciate the importance of maintaining ethical standards in business practices;
4. appreciate the process of decision making and its impact on the environment;
5. develop an awareness of the impact of the external environment on business operations; and,
6. understand the fundamentals of the strategic management process.
SPECIFIC OBJECTIVES CONTENT
Students should be able to:
Types of Economic Activity
1. distinguish among different types of Classification and characteristics of economic

economic activities; activities: primary; secondary; tertiary.
Economic Sectors and Legal Structures
2. compare the different types of Main features including ability to raise finance,
business organisations based on appropriateness of legal structures, challenges
economic sectors and legal of changing from one legal structure to
structures; another, advantages and disadvantages of
each type of structure.
(a) Private Sector Organisations:
(i) sole-trader;
(ii) partnership;
(iii) private limited company;
(iv) public limited company;
(v) co-operative enterprise;
(vi) franchise; and,
(vii) joint venture.

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UNIT 1
MODULE 1: BUSINESS AND ITS ENVIRONMENT (cont'd)
Economic Sectors and Legal Structures (cont’d)
(b) Public Sector Organisations:
(i) public corporations; and,
(ii) statutory boards.
(c) Not for Profit Organisations:
(i) charities; and,
(ii) non-governmental
organisations.
(d) Privatisation and Nationalisation.
Business Objectives
3. analyse the fundamentals of the The broad framework of issues involved in

strategic planning process; organizational strategic planning process will
be addressed.
(a) Mission and vision – Content and

importance.
(b) Core values – Definition, role and

function.
(c) Strengths, Weaknesses, Opportunities

and Threats (SWOT) Analysis –
Characteristics and importance.
(d) SMART Business objectives – Nature,

role and importance of strategic,
tactical and operational objectives.
(e) Strategies – Michael Porter’s business

strategy options (cost leadership,
differentiation, focus).

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UNIT 1
Business Ethics and Corporate Social Responsibility
4. discuss the importance of (a) Importance of organisational ethics

organisational ethics and and integrity.
corporate social responsibility in
setting business objectives; (b) Importance of corporate social
responsibility (CSR).
(c) Obligations to stakeholders.
(d) Principles of Good Corporate

Governance to include:
(i) Board’s responsibility; and,
(ii) accountability and

transparency.
(e) Sustainable business practices.
Decision Making
5. evaluate the process of decision- (a) Process of decision making:

making in business organisations;
and, (i) concept of decision making;
(ii) essential features of

information for decision
making – accuracy, timeliness,
relevance, clarity; and,
(iii) significance of Qualitative vs.

Quantitative decision making.
(b) Stages of decision making (in relation

to objectives):
(i) definition of problem;
(ii) data collection – importance

and sources;
(iii) analysis and evaluation;

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Decision Making (cont’d)
(iv) formulation of alternative

strategies;
(v) implementation; and,
(vi) evaluation.
(c) Factors affecting decision making:
(i) internal factors to include:
• human factors;
• financial factors; and,
• technological factors.
(ii) external factors to include:
• governmental, political
and legal;
• social and cultural;
• technological;
• economic (to include

cost-effectiveness); and,
• environmental
sustainability.
(d) Decision tree analysis (construct and

analyse simple decision trees).
Globalisation and the Caribbean
6. evaluate the role and impact of (a) Definition of globalisation.

globalisation on the Caribbean
Society. (b) Drivers of globalisation, to include:
(i) technology;
(ii) growth of multinationals;

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Globalisation and the Caribbean (cont’d)
(iii) rise of economic trading blocs;

and,
(iv) integration of the global

economy (improved
relationships among
government).
(c) Role of Caribbean Government:
(i) facilitating, enabling

environment; and,
(ii) developing necessary legal

framework.
(d) Impact of globalisation:
(i) consumer behaviour:
• choices, quality, rights

and responsibilities;
(ii) domestic business:
• competition, pricing
policy, quality
assurance, creativity
and innovation, staffing,
financial operations and
emerging technologies;
(iii) trade liberalisation; and,
(iv) multinationals – advantages

and disadvantages to both
multinationals (local or
foreign-based) and the
Caribbean.
(e) Business sustainability (economic,

social and environmental) in the global
economy.

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UNIT 1
Suggested Teaching and Learning Activities
To facilitate students’ attainment of the objectives in Module 1, teachers are advised to engage
students in the teaching and learning activities listed below. Have students:
1. work collaboratively to conduct field investigations to determine growth or decline in different

business sectors and integrate technology to creatively present their findings to the class;
2. create a class online space such as a blog, wiki or website to share information on various
topics in the module using various tools;
3. engage in class discussion on Porter's Business Level Strategies for competing in any industry;
4. engage in class discussions and debates on types of business organisations to recognise

advantages and disadvantages of one business organisation over another;
5. listen to business news (both regional and international) and integrate technology to present
the information to the class to sensitise students to local and regional developments;
6. collect articles on business news and share for in-class discussions, and post information or
reflections in their journals (traditional or on-line) blogs, vlogs, discussion forum and other
trending spaces created for the purpose);
7. have students collaborate to prepare short photo story/video/infographic about one or more
of the topics covered in the Module and share with the class. Students may also post to a class
online space;
8. participate in seminars, symposia or workshops in which resource personnel from different

types of organisations are invited to share information on topics such as, the work of their
organisations, the impact of various business organizations on the environment, issues of
sustainable development, business ethics and the impact of globalization on consumer
behaviour;
9. work collaboratively to complete an assigned group research project and creatively present
the information to their classmates. Members of the class will use an agreed rubric to provide
feedback to their peers on the presentation; and,
10. use case studies, simulation exercises, role play, and video presentations to explore various
concepts in the Module.
Teachers and students may identify other activities that are more suitable to their own class settings.

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UNIT 1
MODULE 2: THE MANAGEMENT OF PEOPLE
GENERAL OBJECTIVES
1. appreciate the importance of the application of management theories in the operation of

business organisations;
2. appreciate the importance of effective communication in business organisations;
3. understand the roles and responsibilities of employers and employees within an organisation;
4. develop an awareness of the effects of human motivation on organisational effectiveness;

and,
5. appreciate the broad formal framework of human resource management.
The Theories and Functions of Management
1. assess the contributions of (a) Evolution of Management theories

management theories to present day (principles and contributions to
organisations; modern day organisations):
(i) Classical and Scientific Theories

- F.W. Taylor, Henri Fayol, Max
Weber;
(ii) Human Relations Model: Elton

Mayo; and,
(iii) Systems Approach –

open/closed/synergy/entropy.
(b) Functions of Management (Definition

and Application):
(i) planning;
(ii) organising;
(iii) staffing;
(iv) leading; and,
(v) controlling.

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UNIT 1
MODULE 2: THE MANAGEMENT OF PEOPLE (cont'd)
Organisational Structure
2. evaluate the types and features of (a) Classification of Organisational

the formal organisational structure; Structure – (Principles, Advantages and
Disadvantages):
(i) by function;
(ii) by product;
(iii) geographical market;
(iv) matrix;
(v) team;
(vi) network; and,
(vii) virtual.
(b) Features of the Formal Organisational

Structure:
(i) hierarchy;
(ii) chain of command;
(iii) span of control;
(iv) line and staff relationship;
(v) responsibility;
(vi) authority;
(vii) accountability;
(viii) delegation;
(ix) centralisation; and,
(x) decentralisation.

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UNIT 1
Theory and Application of Motivation
3. discuss the theories of motivation (a) Factors that stimulate and influence
and their application to the motivation: individual needs; self-
management of people in motivation; ability to make choices;
organisations; environmental opportunities.
(b) Theories of motivation:
(i) Content Theories – Maslow’s

Hierarchy of Needs; Herzberg’s
Hygiene Theory; and,
(ii) Process Theory – Vroom’s

Expectancy Theory.
(c) Implication of motivation theories to

managers: getting the best out of
individuals; appreciation of work and
appropriate reward systems (financial
and non-financial).
Leadership
4. differentiate among types of (a) Definition of leadership.
leadership theories, skills, and styles;
(b) Leadership Theory: Trait Theory;
(Hershey and Blanchard) Situational
Theory; (Richard Barrett) Value-based
Leadership; (Kasthuri Henry) Ethical
Leadership.
(c) Leadership skills including:
(i) communication;
(ii) strategic thinking;
(iii) emotional intelligence; and,
(iv) decision-making, problem-

solving and critical thinking.

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UNIT 1
Leadership (cont’d)
(d) Leadership styles/behaviours:
(i) transactional; and,
(ii) transformational.
(e) Informal leadership; its influence on

the organisation:
(i) definition of informal

leadership; and,
(ii) advantages and disadvantages

of informal leadership.
Effective Management of Teams
5. discuss the team formation process (a) Definition of Teams.

and the characteristics and
importance of effective teams; (b) Tuckman’s Stages of Team
Development (forming, storming,
norming, performing, adjourning).
(c) Characteristics of effective teams:
(i) commitment;
(ii) participation;
(iii) trust;
(iv) decision by consensus;
(v) flexibility;
(vi) encouragement; and,
(vii) support and growth.

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UNIT 1
Effective Management of Teams (cont’d)
(d) Forces that influence team

cohesiveness (including size, team
goals, similarities, diversity, attraction).
(e) Advantages and Disadvantages of

teams to the organisations.
Managing Conflict in Organizations
6. evaluate the nature and (a) Definition and nature of conflict.

management of conflict in
organizations; (b) Possible Causes of conflict:
(i) management style;
(ii) competition for scarce

resources;
(iii) ineffective communication;

and,
(iv) clash of personalities.
(c) Strategies to manage conflict:
(i) avoidance;
(ii) smoothing;
(iii) compromise;
(iv) collaboration; and,
(v) confrontation.
Management of Change
7. justify the need to cope with and (a) Nature of change: technical, economic,
manage change in the organisation; demographic, social and legal.

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UNIT 1
Management of Change (cont’d)
(b) Reasons for resistance to change: fear

of the unknown, climate of mistrust,
disrupted habits, loss of control and
confidence, inadequate training,
redistribution of workload and lack of
clarity of purpose, loss of power,
ineffective communication, inadequate
leadership support.
(c) The importance of coping with and

managing change is missing.
(d) Strategies to manage change: Lewin’s

Model – Force Field Analysis.
Communication in Business
8. assess the importance of effective (a) Definition of communication and

communication in organisations; diagrammatizing the Communication
and, Process.
(b) Communication methods (including:

oral, written, visual, non-verbal);
Communication channels (including:
Internet, e-mail, Intranet, facsimile,
video conferencing).
(c) Definition of effective communication.
(d) Lines of Communication:
(i) formal channel – vertical and

horizontal;
(ii) informal channel;
(iii) advantages and disadvantages

of formal and informal
channels; and,
(iv) the importance of effective

communication.

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UNIT 1
Communication in Business (cont’d)
(e) Barriers to effective communication:
(i) sender stage barriers;
(ii) transmission stage barriers;

and,
(iii) receiver stage barriers.
(f) Reducing barriers to communication:
(i) sender stage barriers;
(ii) transmission stage barriers;

and,
(iii) receiver stage barriers.
Human Resource Management
9. evaluate the strategic importance of (a) The strategic role of human resource
human resource management in management to organisational success.
organisations.
(b) The impact of selected functions of the
human resources department –
definition, description and strategic
importance of each of the following
functions:
(i) recruitment and selection;
(ii) training and development:
• training: induction,
orientation and on-the-
job/off-the-job; and,
• development: coaching,
counselling and mentoring.
(iii) performance management

cycle: goal-setting, resource
allocation, timelines, ongoing
monitoring and appraisal.

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UNIT 1
To facilitate students’ attainment of the objectives of Module 2, teachers are advised to engage
1. participate in lectures, tutorials and presentations by teachers and other resource persons
with specialised knowledge of a wide range of content areas. Students will document the main
points shared;
2. collaborate to conduct research and integrate technology to creatively present the information
to their classmates. Students may add the presentations to their class blog, wiki, or website;
3. work collaboratively to research the recruitment and selection or induction and orientation
process implemented at a local business organisation. Students will share their findings in an
in-class discussion;
4. work in teams to conduct role play or simulation exercises demonstrating conflict, leadership
and or communication in a business. They should also demonstrate appropriate
strategies/approaches for dealing with conflicts and for effective leadership and
communication;
5. engage class in discussion on case studies on topics such as motivation, leadership, decision
making and the importance of effective communication;
6. engage in role play or create songs, poems or integrate technology to demonstrate topics such
as leadership, conflict, communication, and motivation;
7. collaborate to prepare short photo story/video/infographic about one or more of the topics
covered in the Module and share with the class. Students may also post to a class online space;
8. reflect and express their thoughts and perceptions by maintenance of journals which are
subsequently shared with peers;
9. engage in a team exercise (such as creating a factory using plasticine, craft material or
macaroni). Students will be able to experience the stages of team development and evaluate
the use of teamwork in organisations; and,
10. use the organisational chart of an existing business to demonstrate the key features such as
span of control, chain of command and line and staff relationship.

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UNIT 1
MODULE 3: BUSINESS FINANCE AND FINANCIAL DECISION-MAKING
GENERAL OBJECTIVES
1. understand the roles and functions of finance in the management of business with special
reference to the Caribbean;
2. understand the impact of financial decision-making on overall business performance; and,
3. develop analytical and interpretational skills relating to problem solving in financial decision
making.
The Need for Capital
1. explain the various need for capital; (a) Start-up or venture capital.
(b) Working capital.
(c) Investment capital.
Sources of Finance
2. evaluate the main sources of finance; (a) Equity financing versus debt financing.
(b) Sources of equity financing: capital and

shares.
(c) Sources of debt financing: loans,

debentures and bonds.
(d) Short-term sources vs Long-term

sources.
Criteria for Seeking Finance
3. explain the main criteria that Criteria:

businesses use when seeking
financing; (a) cost;
(b) amount of capital needed;
(c) time frame (long-term vs short-term);
(d) risk; and,
(e) control/ownership.

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MODULE 3: BUSINESS FINANCE AND FINANCIAL DECISION-MAKING (cont’d)
The need for Accounting Information for Financial Decision Making
4. discuss the importance of accounting (a) The Concept of Accounting information.

information for decision-making for
both Internal and External users; (b) The importance of Accounting
Information in the management of
businesses.
(c) Users of Accounting Information:
(i) internal stakeholders; and,
(ii) external stakeholders.
Components of Financial Statements
5. appraise the different components Working knowledge of components of financial

of financial statements; statements:
(a) Income Statement: including sales, cost

of sales, gross profit, net profit;
(b) Balance Sheet: including fixed assets,

current assets, current liabilities, fixed
liabilities, owner’s equity; and,
(c) Statement of Cash Flows.
*Students are not required to prepare financial

statements.
Financial Statements Analysis
6. interpret key financial statements (a) Use of Accounting Ratios.

through the use of ratio analysis;
(b) Advantages and disadvantages of ratio
analysis.

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UNIT 1
Financial Statements Analysis (cont’d)
(c) Calculation and Interpretation of Types

of Ratios:
(i) Liquidity Ratios (current and

acid test ratio);
(ii) Profitability Ratios: (Gross Profit

Margin; Net Profit Margin;
Return on Capital Employed
(ROCE);
(iii) Efficiency; Activity Ratios: (Stock

Turnover Ratio; Debtor Day
Ratio);
(iv) Gearing Ratio = Debt ÷ Capital

Employed
• Debt = Long Term Debt;

and,
• Capital Employed =
Fixed Assets + Current
Assets – Current
Liabilities.
(v) Investors/shareholders Ratios:

Dividend Yield and Earnings Per
Share.
Budgets and Budgetary Control
7. discuss the importance of budgeting; (a) Definition of budgeting.
(b) Importance of budgeting (usefulness

and limitations).

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UNIT 1
Budgets and Budgetary Control (cont’d)
8. demonstrate the ability to create a (a) Steps in creating a budget, to include:

budget;
(i) goals;
(ii) set timelines;
(iii) ascertain income;
(iv) list and prioritize expenditure;

and,
(v) verification.
(b) Creation of simple budgets including:

cash, sales, production, materials,
purchases, labour.
9. demonstrate the ability to analyse a Budgetary Control:

budget; and,
(a) definition and explanation of variances;
and,
(b) simple variance analysis calculation.
Investment Appraisal
10. evaluate the various methods used (a) Need for investment Appraisal.
by businesses in selecting the most
appropriate investment option. (b) Analytical methods of Appraisal:
- payback period: average rate of

return, net present value
(meaning, interpretation and
simple calculations required).
(c) Comparisons of Methods of Appraisal.

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UNIT 1
with specialised knowledge of a wide range of content areas. Students should document the
main points;
2. work collaboratively to interpret published financial statements using ratio analysis. Each
group could be asked to present their work to the class;
3. work collaboratively to analyse case studies to reinforce learning and provide opportunities
for application of concepts. Their responses will be discussed in class;
4. work collaboratively to research established institutions to examine how different aspects of

their financial operations are conducted. Information should be documented and shared in
class;
5. work in small groups to present a simulation or role play on the factors to be considered in
decision making, the importance of budgeting or any other topic covered in the Module;
6. access financial materials from various sources, for example, radio and television, podcasts,
YouTube videos and publications of professional journals, for example, N.Y.S.E, Financial
Times to share the information with the class and on their class online space;
7. participate in presentations by guest speakers from different firms or attend webinars on

issues related to business finance, accounting and financial decision making. Students should
document the main points;
8. participate in role play as members of a board to discuss the investment of a given capital, and
choose from among some investment opportunities, bearing in mind the source of the capital,
as well as the cost of the capital; and,
9. work in small groups to analyse case materials and prepare relevant budgets.
RESOURCES
Barkarr, S. Management of Business, Unit I, Caribbean Educational

Publishers, 2008.
Bahaw, P. and Ramkhelawan, J. Management of Business for Caribbean Students, Unit 1 and 2,
Caribbean Educational Publishers, 2021.
Cole, G. A. and Kelly, P. Management Practice of Theory, 7th Edition, Cengage

Learning, 2011.

NOT FOR TEACHING
UNIT 1
Hall, D., Rob J. and Raffo, C. Business Studies, Lancaster: Causeway Press Limited, 2010.
Pitterson, J. Management of Business for CAPE Examinations, MacMillan

Publisher, 2016.
Plunkett, W. R., et al Management: Meeting and Exceeding Customer

Expectations 9th Edition, South-Western College Publisher,
2016.
Singh, K. CAPE Management of Business Revision Guide: HarperCollins

Publishers Limited, 2016.
Stimpson, P. and Singh, K. Management of Business Unit I, Cambridge University Press,

2009.
Electronic Resources:
https://www.tutor2u.net/
www.investopedia.com
https://quizizz.com/
https://www.quizalize.com/
https://edpuzzle.com/

NOT FOR TEACHING
 UNIT 2: APPLICATIONS IN MANAGEMENT

MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT
GENERAL OBJECTIVES
1. understand the operations involved in the production of goods and services;
2. develop an awareness of the importance of productivity and quality in production;
3. appreciate the importance of tools and techniques required for production and operations
management; and,
4. be aware of the impact of the internal and external environment on the production and
operations management decisions.
Nature of Production
1. describe the major decisions General overview of production and operations

involved in the production process; management – Input-Conversion-Output
Process:
(a) Input decisions:

(i) factors of production;
(ii) location of production;
(iii) forecasting; and,
(iv) quality assurance.
(b) Conversion decisions:

(i) production methods;
(ii) production layout;
(iii) capacity planning;
(iv) quality control;
(v) quality assurance; and,
(vi) productivity decisions.
(c) Output decisions:

(i) quality control;
(ii) inventory management; and,
(iii) distribution and logistics.

NOT FOR TEACHING
UNIT 2
MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT (cont'd)
Forecasting Techniques
2. assess techniques involved in Forecasting techniques (definition, description,

forecasting; advantages and disadvantages):
(a) Quantitative
(i) time series analysis; and,
(ii) consumer surveys.
(b) Qualitative
(i) sales force composite;
(ii) Delphi method; and,
(iii) jury of experts.
Product Design Strategies
3. differentiate among the strategies (a) Modularisation.

involved in product design;
(b) Miniaturisation.
(c) Integration.
(d) Value analysis.
(e) CAD – Computer Aided Design, CAM –

Computer Aided Manufacturing (basic
principles).
Production Methods
4. examine the various methods used in Features, advantages and disadvantages of

production; methods of production:
(a) job;
(b) batch; and,
(c) flow.

NOT FOR TEACHING
UNIT 2
Layout Strategies
5. examine various strategies used in Definition, description, advantages and

production layout process; disadvantages of the following:
(a) process layout.
(b) production layout.
(c) fixed position layout.
(d) cellular layout.
Capacity Planning
6. discuss the concept of capacity (a) Definition of capacity and capacity

planning; planning.
(b) Importance of capacity utilisation.
(c) Design capacity.
(d) Efficiency capacity.
(e) Calculation of capacity utilisation

(simple calculations).
(f) Methods of improving capacity

utilisation.
(g) Strategies to increase and reduce

capacity.
(h) Economies and diseconomies of scale.
Costing
7. evaluate the importance of costing in (a) Classification of Cost of Production

production; (direct/indirect variable/fixed).
(b) Approaches to costing/cost allocation

(definition, advantages and
disadvantages):

NOT FOR TEACHING
UNIT 2
Costing (cont’d)
(i) absorption; and,
(ii) contribution or marginal

(including make or buy
decisions).
(c) Break-even analysis:
- break-even point, (definition,

uses, advantages and
disadvantages, simple calculation
of the following: BEP for Output
and Sales, Contribution Margin
Sales for a desired Profit, Output
for a desired profit and Margin of
safety).
8. create production costing statements (a) Preparation of absorption costing and

and break-even charts; contribution/marginal costing
statements.
(b) Construction of break-even charts.
Inventory Management:
9. examine the concept and practice of (a) Classification and Importance of

inventory management; managing inventory (stock).
(b) Inventory (stock) control management:
(i) reorder level (construct and

interpret simple diagram);
(ii) EOQ (Simple calculations); and,
(iii) just in time.
UNIT 2

NOT FOR TEACHING
Lean Production and Quality Management
10. apply the principles of lean (a) Lean Production (link between
production and quality management inventory management, quality and
to the management of production capacity and employee roles).
and operations;
(b) Importance of managing quality.
(c) Dimensions of Quality:
(i) performance;
(ii) features;
(iii) reliability;
(iv) conformance;
(v) durability;
(vi) serviceability;
(vii) aesthetics; and,
(viii) perceived quality.
(d) Techniques for improving quality

including:
(i) benchmarking;
(ii) ISO Quality Standards;
(iii) outsourcing;
(iv) quality circles;
(v) quality assurance;
(vi) quality control;
(vii) Total Quality Management

(TQM) including Kaizen or
continuous improvement; and,
(viii) SERVQUAL.
UNIT 2

NOT FOR TEACHING
Productivity
11. evaluate the methods of measuring (a) Definition, types and formula.
and improving productivity; and,
(b) Methods of measuring productivity
(including labour and machinery, with
relevant calculations).
(c) Factors that impact productivity

including: (technology, training, market
demand, competition, quality of labour
supply, level of pricing).
(d) Strategies for improving productivity.
Project Management (students are required to prepare and interpret diagrams of models)
12. assess the importance and (a) Definition and description of Project
application of project management. Management.
(b) Key dimensions of Project Management

(cost, quality and time).
(c) Phases of Project Management (the

project life cycle).
(d) Network analysis (activity on arrow

method) - Critical path method (CPM)
(construction of simple network
diagrams).
(e) Challenges faced in managing a project.
NB (Students are required to prepare and

interpret diagrams of the CPM model)

NOT FOR TEACHING
UNIT 2
1. use examples of product based and service-based organizations to relate the input –
conversion – output process and discuss the major decisions that organizations are required
to make at each stage of the process;
2. acquire annual sales statistics for any organization and place them in random order. Then ask
students to place randomized sales statistics for an organization in a time series starting from
the oldest to most recent. Then participate in a class discussion on any trends that are
identified and illustrate how this information can be used to assist with sales forecasts for
future time periods;
3. use an example of a technology-based product such as a cell phone, to discuss the various
product design strategies that were used by the manufacturers and the advantages of the
strategies;
4. use an example of a simple retail food business to illustrate the concept of capacity based on
the amount of lunches the business can produce in a day. Then apply this to a scenario such as
increased demand or a special order to discuss strategies to improve capacity utilization and
strategies to increase or reduce capacity;
5. analyse a scenario of a simple small business and list the costs the business has to incur, then
categorise those costs into direct versus indirect costs and fixed versus variable costs. They will
then use a suggested price for a product to illustrate the concept of break-even analysis both
graphically and by calculation;
6. participate in research, class debates and panel discussions and on topical issues related to
production and operations management. Have them document critical learning outcomes to
be shared in class or on the class online space;
7. conduct experiential activities related to production and operations management. Use the
school cafeteria as an example of a business to introduce the concept of inventory, the
importance of managing inventory and methods which can be used to manage inventory;
8. create podcasts, video presentations and graphics or select relevant YouTube videos on
different topics to be shared in their class online space;
9. attend a popular school or suitable community event such as a graduation or sports day or
concert and work collaboratively to explore the concept of project management. They should
identify the challenges/issues which occurred during the event and then illustrate how the
tools and techniques of project management could be used to address those challenges. They
should creatively integrate technology to share their findings with their classmates;

NOT FOR TEACHING
UNIT 2
with specialised knowledge of a wide range of content areas;
11. view ‘How it’s made’ videos on YouTube to observe and analyse production methods used in
creating a variety of products; and,
12. work in teams to engage in the production of one or more products, applying the concepts of
production and operations learnt in this Module. Students should use a checklist to evaluate
the quality of the products.

NOT FOR TEACHING
UNIT 2
MODULE 2: FUNDAMENTALS OF MARKETING
GENERAL OBJECTIVES
1. understand the role and importance of marketing;
2. develop an awareness of the impact of external environmental forces on marketing practice;

and,
3. demonstrate an understanding of the principles of marketing management.
The Concept of Marketing
1. explain the term marketing and its (a) Definition of marketing.

related terms;
(b) Related marketing terms:
(i) markets;
(ii) value added; and,
(iii) exchange transactions.
Implications of Different Marketing Concepts
2. assess the implications of various (a) The product concept.

marketing concepts;
(b) The production concept.
(c) The selling concept.
(d) The marketing concept.
(e) The societal marketing concept.
The Marketing Environment
3. assess the influence of the marketing (a) Composition of the Marketing

environment on the firm’s marketing Environment:
strategy decisions;
(i) internal environment; and,
(ii) external environment - micro

and macro environment.

NOT FOR TEACHING
UNIT 2
MODULE 2: FUNDAMENTALS OF MARKETING (cont’d)
The Marketing Environment (cont’d)
(b) Forces in the internal environment –

application of the Porter’s value chain
analysis model.
(c) Forces in the micro-environment –

application of Porter’s Five Forces
analysis.
(d) Forces in the macro-environment –

application of PESTLE framework.
(e) Consumer buying behaviour:
(i) the buying process; and,
(ii) factors influencing buying

behaviour.
Marketing Research
4. explain the elements of the (a) Role and importance of market

marketing research process; research.
(b) Importance of developing a research

plan.
(c) Describe the stages of Market

Research:
(i) management problem

identification;
(ii) research objectives;
(iii) sources of data – primary,

secondary;
(iv) sampling – probability and

non-probability;
(v) research techniques – focus

groups, surveys, in-depth
interviews; observation; and,

NOT FOR TEACHING
UNIT 2
Marketing Research (cont’d)
(vi) analysis and presentation of

results.
(d) Limitations of Market Research.
Principles of Market Segmentation
5. assess the principles of Segmenting, (a) Segmentation:

Targeting and Positioning (STP)
marketing; (i) importance of market
segmentation.
(ii) bases of segmentation for

consumer markets:
• demographic;
• psychographic;
• geographic; and,
• behavioural.
(b) Targeting:
(i) importance of targeting;
(ii) targeting options:
• niche;
• multi-segment; and,
• mass market.
(c) Positioning:
(i) importance of positioning;
(ii) points of parity and points of

difference with competitors;
and,
(iii) interpretation of simple

positioning maps.

NOT FOR TEACHING
UNIT 2
Product Management
6. evaluate the principles of product (a) The concept of product – core, formal
management; or actual, augmented.
(b) Dimensions of the product mix.
(c) Product line and product extension.
(d) New product development process.
(e) Product life cycle.
(f) Branding and packaging.
(g) Characteristics of services compared to

goods.
Pricing Decision
7. evaluate various pricing strategies; (a) Introduction to Pricing – definition, role

and importance.
(b) Factors influencing pricing decisions

(Organisational, Market and
Customer).
(c) Pricing strategies, including:
(i) cost plus pricing;
(ii) competition pricing;
(iii) penetration pricing; and,
(iv) price skimming.

NOT FOR TEACHING
UNIT 2
Distribution Management
8. discuss the major considerations of (a) Role of distribution in an organisation.

distribution management;
(b) Factors influencing distribution
decisions.
(c) Types of distribution channels

(including direct, indirect).
(d) Types of distribution strategies

(intensive, selective, exclusive).
(e) Introduction to logistics strategy.
Promotion Strategy
9. examine the major tools of (a) Objectives of promotion.

promotion and their implications;
and, (b) Tools of promotion and their relative
advantages:
(i) advertising;
(ii) personal selling;
(iii) sales promotion;
(iv) public relations; and,
(v) direct marketing.
Digital Marketing
10. discuss the influence of technology (a) Definition of digital marketing.

on marketing decisions.
(b) Strategies used in digital marketing,
(for example social media marketing).
(c) Benefits and challenges of digital

marketing.

NOT FOR TEACHING
UNIT 2
1. engage in simulated case studies and group projects related to marketing;
2. participate in a panel discussion on marketing issues conducted by external resource persons.

Students will document the main points;
3. work collaboratively to use primary and secondary sources to investigate the impact of digital
technologies on marketing decisions. They will integrate technology to creatively present their
findings to the class, and post it on their class’s virtual space;
4. participate in role play as members of the board of a business, to discuss the strategy of pricing
to be used by the organization, taking into consideration the micro and macro environments.
Students will collate the main points to create an infographic, poster or podcast on the topic;
5. work in small groups to create a flyer, podcast, song, jingle or movie/video to share tips or
considerations for effective marketing of a business or product. These should be presented in
class and shared in the group’s virtual space;
6. discuss the advantages and disadvantages of the major tools of promotion. Select one tool or
a combination of tools, and create an elevator pitch to promote a business;
7. develop a brand and package for a product and provide justification for their creation;
8. work in small groups to investigate the packaging strategies implemented by a business and
assess the extent to which it promotes sustainability; and,
9. work in small groups to analyse an advertisement to determine its effectiveness. Students will
then develop alternative versions of the advertisement reflecting improvements to enhance its
effectiveness.

NOT FOR TEACHING
UNIT 2
MODULE 3: SMALL BUSINESS MANAGEMENT
GENERAL OBJECTIVES
1. appreciate the difference between entrepreneurship and small business management; and,
2. develop an awareness of the characteristics of small business management.
The Nature and Characteristics of Entrepreneurship vs Small Business Management
1. discuss the nature of (a) Distinction between Entrepreneurship

entrepreneurship vs small business and Small Business Management.
management;
(b) Entrepreneurship vs Intrapreneurship.
(c) Social Entrepreneurship.
(b) Characteristics of successful

entrepreneurs and small business
owners.
Size and Growth of Small Businesses
2. assess the criteria for measuring size Criteria for measuring size and growth:
and growth of small businesses;
(a) output;
(b) annual turnover;
(c) size of labour force; and,
(d) capital structure.
Major Strengths and Weaknesses, Opportunities and Challenges faced by Small Businesses
3. assess the strengths and (a) Internal Strengths and Weaknesses:

weaknesses, opportunities and
challenges faced by small businesses; (i) size and financial
requirements;
(ii) economies/diseconomies of
scale;

NOT FOR TEACHING
UNIT 2
MODULE 3: SMALL BUSINESS MANAGEMENT (cont’d)
Major Strengths and Weaknesses, Opportunities and Challenges faced by Small Businesses (cont’d)
(iii) strategies for growth;
(iv) management and control;
(v) record keeping;
(vi) working capital deficiencies;

and,
(vii) management competencies.
(b) External Opportunities and Challenges:
(i) identifying successful

business opportunities;
(ii) sourcing capital (finance);
(iii) selection of business types

(sole trader, partnership,
company);
(iv) determining a location;
(v) globalisation and trade

liberalisation;
(vi) e-commerce;
(vii) intellectual property; and,
(viii) regulation and legislation.
Types and Nature of Assistance Available to Small Firms
4. describe the types of assistance (a) Agencies that Assist Small Businesses:
agencies offer to small businesses;
and, (i) governmental agencies;
(ii) non-governmental agencies;

and,
(iii) financial institutions.

NOT FOR TEACHING
UNIT 2
Types and Nature of Assistance Available to Small Firms (cont’d)
(b) Types of Assistance Offered to Small

Businesses:
(i) financial;
(ii) technical;
(iii) education and training; and,
(iv) incubation.
Preparation of a Business Plan for a Small Business
5. develop a business plan. (a) Definition of a Business Plan.
(b) Sections of a Business Plan:
(i) executive summary;
(ii) business description:
• legal establishment
history; and,
• start-up plans.
(iii) business environment analysis:
• target market;
• customer needs; and,
• location.
(iv) industry background; and,
(v) competitor analysis:
• who are your

competitors.

NOT FOR TEACHING
UNIT 2
Preparation of a Business Plan for a Small Business
(vi) market analysis:
• customer needs;
• where they are; and,
• how to reach them.
(vii) marketing plan:
• pricing strategy;
• promotion strategy;
and,
• distribution strategy.
(viii) operations plan:
• cost of production; and,
• machinery.
(ix) managerial summary:
• management
personnel; and,
• staffing.
(x) financial plan:
• profit and loss;
• cash flows;
• break-even analysis;
• source of funds;
• business ratios; and,
• assumptions.
(c) Benefits and challenges of preparing

business plans.

NOT FOR TEACHING
UNIT 2
1. use two examples of businesses, to highlight the concept of innovation, and then discuss major
social issues occurring in the local environment and entrepreneurs who have established
ventures to assist in addressing such issues;
2. establish and operate a small traditional or virtual store to sell items used by students in the
school, involving the steps of: ordering, banking, inventory, cost and sales analysis and
marketing;
3. use the scenario of a local example of an entrepreneurial venture which has experienced
growth and ask students to discuss various criteria which can be used to measure such growth;
4. work collaboratively to develop a business plan and discuss the importance of each section.
Using a standardized rubric, students will engage in a peer review of another group’s business
plan and provide feedback;
5. work in small groups to create a flyer, podcast, song, jingle or movie/video to share tips or
considerations for effective management of a small business. These should be presented in
class and shared in the group’s virtual space;
6. work in groups to conduct research on a local entrepreneur to evaluate internal strengths and
weaknesses and external opportunities and challenges faced in operating the venture and to
recommend strategies to mitigate the challenges; and,
7. work in groups to conduct research to identify local agencies which provide assistance to
address the challenges faced by small businesses.
RESOURCES
Bahaw, P. and Ramkhelawan, J. Management of Business for Caribbean Students, Unit 1 and 2,
Caribbean Educational Publishers, 2021.
Birchall, J. and Morris, G Business Studies, Surrey: United Kingdom: Nelson Thornes Ltd,
1999.
Kotler, P. and Armstrong, G. Principles of Marketing, 17th Edition, Pearson, 2018.
Good, Walter R., et al. Building Your Dream: A Guide to Starting Your Own Business,
11th edition, Toronto: McGraw Hill, 2021.

NOT FOR TEACHING
UNIT 2
Hall, D., Jones, R. and Raffo, C. Business Studies, 4th edition, Lancaster: Causeway Press
Limited, 2008.
Hammond, S. Business Studies, United Kingdom: Longman Group Ltd., 1994.
Hanson, W. Principles of Internet Marketing: South-Western College

Publishing, 2000.
Pitterson, J. Management of Business for CAPE Examinations, MacMillan

Publisher, 2016.
Singh, K. CAPE Management of Business Revision Guide, HarperCollins

Publishers Limited, 2016.
Electronic Resources:
https://www.tutor2u.net/
investopedia.com
https://www.quizalize.com/
https://edpuzzle.com/

NOT FOR TEACHING
 OUTLINE OF ASSESSMENT
Each Unit of the syllabus will be assessed separately. The same scheme of assessment will be applied
to each Module in each Unit. Grades will be awarded independently for each Unit.
The Assessment will comprise two components, one external component and one internal.
Candidates must complete the School-Based Assessment for the first Unit that they write. Candidates
may carry forward the School-Based Assessment mark from the first Unit written to the second Unit
(irrespective of the mark earned), or opt to complete the School-Based Assessment for the second
Unit as well.
EXTERNAL ASSESSMENT FOR EACH UNIT (80 per cent)
Paper 01 This paper consists of forty-five (45) multiple-choice 30 per cent

(1 hour 15 minutes) items. There are fifteen (15) items on each Module.
Paper 02 This paper consists of three (3) compulsory 50 per cent

(2 hours 30 minutes) questions, each corresponding to a Module in the
Unit.
SCHOOL-BASED ASSESSMENT FOR EACH UNIT (20 per cent)
Paper 031
A research paper not exceeding 1,500 words, based on a topic covered in any Module(s) of the Unit being
assessed. The School-Based Assessment for each Unit requires that candidates undertake a project which
must demonstrate their skills in research, analysis, evaluation and presentation of information.
Candidates who, in the same year, register for both Units of CAPE® Management of Business may opt to:
(a) submit a separate School-Based Assessment assignment for each Unit; or
(b) submit a single School-Based Assessment assignment from either Unit 01 or Unit 02.
Candidates who opt for (b) must indicate from which Unit the School-Based Assessment assignment
was selected.
Paper 032
Private candidates are required to write an Alternative Paper – Paper 032. The Paper will be based on
a case study and will consists of three compulsory questions. It will test skills in research, analysis,
evaluation and presentation, similar to those assessed in the School-Based Assessment (Paper 031).
Details are on page 54.

NOT FOR TEACHING
MODERATION OF SCHOOL-BASED ASSESSMENT
School-Based Assessment Record Sheets are available online via the CXC®’s website www.cxc.org.
All School-Based Assessment Record of marks must be submitted online using the SBA data capture
module of the Online Registration System (ORS). Assignments will be requested by CXC® for
moderation purposes. These assignments will be re-assessed by CXC® Examiners who moderate the
School-Based Assessment. Teachers’ marks may be adjusted as a result of moderation. The
Examiners’ comments will be sent to schools. All assignments must be submitted online via the ORS
by the stipulated deadlines.
Copies of the students' assignment must be retained by the school until three months after publication
by CXC® of the examination results.
ASSESSMENT DETAILS
External Assessment by Written Papers (80 per cent of Total Assessment)
Paper 01 (1 hour 15 minutes – 30 per cent of Total Assessment)
1. Numbers of Questions
All questions are compulsory. This paper will consist of 45 multiple-choice questions. There
will be 15 questions from each Module.
2. Syllabus Coverage
(a) Knowledge of the entire syllabus is required.
(b) The intention of this paper is to test candidates’ knowledge across the breadth of the
syllabus.
3. Mark Allocation
(a) One mark will be assigned for each question.
(b) The total number of marks available for this paper is 45, weighted to 90 marks.
(c) This paper contributes 30 per cent towards the final assessment.
4. Use of Calculators
Candidates may use silent non-programmable calculators.
Paper 02 (2 hours 30 minutes – 50 per cent of Total Assessment)
1. Composition of Paper
(a) This paper will consist of three (3) compulsory structured or extended response
questions.

NOT FOR TEACHING
(b) There will be one question on each Module.
(c) Candidates are required to attempt ALL three questions.
(d) The total number of marks available for the paper is 75.
(e) This paper contributes 50 per cent towards the final assessment.
2. Syllabus Coverage
(a) Each question requires a greater depth of understanding than those questions in
Paper 01.
(b) The purpose of this paper is to test candidates’ in-depth knowledge of the syllabus.
3. Question Type
Questions require an extended response involving reasoning, analysis and synthesis.
4. Mark Allocation
Each question is worth 25 marks, weighted to 50 marks.
5. Award of Marks
Marks will be awarded for:
(a) clear logical reasoning;
(b) evidence of ability to analyse a problem step by step and to apply principles and
practices, skills and knowledge to reach a logical conclusion;
(c) evidence of problem-solving ability; and,
(d) evidence of the ability to synthesise and evaluate information.
Full marks will be awarded when candidates meet all criteria.
SCHOOL-BASED ASSESSMENT
The Project – Paper 031
School-Based Assessment is an integral part of student assessment in the course covered by this
syllabus. It is intended to assist students in acquiring certain knowledge, skills and attitudes that are
associated with the subject. The activities for the School-Based Assessment are linked to the syllabus
and should form part of the learning activities to enable the student to achieve the objectives of the
syllabus. Students are encouraged to work in groups to complete the SBA.
During the course of study for the subject, students obtain marks for the competence they develop
and demonstrate in undertaking their School-Based Assessment assignments. These marks contribute

NOT FOR TEACHING
to the final marks and grades that are awarded to students for their performance in the examination.
The guidelines provided in this syllabus for selecting appropriate tasks are intended to assist teachers
and students in selecting assignments that are valid for the purpose of School-Based Assessment. The
guidelines provided for the assessment of the assignments are intended to assist teachers in awarding
marks that are reliable estimates of the achievement of students in the School-Based Assessment
component of the course. In order to ensure that the scores awarded by teachers are consistent with
the CXC® standards, the Council undertakes the moderation of the School-Based Assessment
assignments marked by each teacher.
Presentation of Project
1. The aims of the project are to:
(a) promote self/group-learning;
(b) allow teachers the opportunity to engage in the formative assessment of their
students;
(c) allow students to enhance their understanding of the nature of business organisations
through local studies;
(d) allow students to display evidence of careful observation and originality in their work;
(e) allow students to analyse business information gathered and make practical
decisions; and,
(f) explore more fully, some areas of the Unit which may not be assessed adequately in
an external examination.
2. Requirements
(a) Students must choose an organisation on which they would do their research project
either individually or in groups. Group size must not exceed four (4) persons. The project
should afford students the opportunity to pursue areas of personal interest based on a
topic covered in any Module(s) of the Unit being assessed. The project must be
quantitative research. Students may use primary and/ or secondary sources of data in
completing their SBA.
(b) Primary sources of data may include questionnaires, interviews and observations.
Secondary sources of data may include documents such as academic, professional and
trade journals, government papers, fact-based reports, and documentation on the firm
studied.
3. Management of the Project
(a) An early start to planning project work is highly recommended.
(b) Each candidate should know the requirements of the project and its assessment
procedures, as part of the orientation to the Unit.

NOT FOR TEACHING
(c) Teachers should guide the candidates in choosing appropriate projects that relate to
the candidates’ interest and the specific objectives identified.
(d) A schedule of the dates for submitting project work (agreed by teachers and
candidates) should be established.
(e) A teacher should offer guidance in the data collection process and the preparation of
the report.
4. Project Reports
A candidate’s project must be presented electronically. The cover page should display the title
of the project, centre number, candidate’s /candidates’ number(s), name(s), name of subject
and the unit, teacher’s name and the year of examination. The project document should
comprise:
(a) Title page;
(b) Table of Contents;
(c) Introduction:
(d) Literature Review;
(e) Methodology;
(f) Presentation of Data;
(g) Analysis of Data;
(h) Interpretation of Results;
(i) Conclusions and Recommendations; and,
(j) References and Citations.
The report, not exceeding 1500 words, (excluding cover page, title page, table of contents, diagrams
and tables, references and appendices) should be typed double-spaced (font size 12, Times New
Roman, Calibri or Arial).

NOT FOR TEACHING
Skills to be Assessed
1. Knowledge and Understanding: candidate’s ability to demonstrate knowledge and

understanding of the objectives being assessed in the
Module.
2. Application: candidate’s ability to collect, classify and

communicate information.
3. Analysis: candidate’s ability to distinguish relationships among

components of the business environment.
4. Evaluation and Reasoned candidate’s ability to interpret, make judgement and

Judgement: recommendations appropriate to the business under
investigation.
5. Presentation: candidate’s ability to present the report using, where

necessary, relevant charts, tables and graphs.
MARK ALLOCATION FOR THE SCHOOL-BASED ASSESSMENT
1. Introduction 7
2. Literature Review 8
3. Methodology 7
4. Presentation of Data 11
5(a) Analysis of Data 3
5(b) Interpretation of Results 6
6. Conclusions and Recommendations 6
7. Communication of information in a logical way using correct grammar 5
8. References and Citations 3
9. Overall Presentation of Report 4
Total 60

NOT FOR TEACHING
DETAILED MARK SCHEME FOR THE SCHOOL-BASED ASSESSMENT
MARKS
1. Introduction [7 marks]
Background of the project
• Background should provide information about the organisation that is 2

relevant to the research topic
- background is fully relevant to the topic (2 marks)
- background is not fully relevant to the topic (1 mark)
• Justification for the topic shows how the project will contribute to a better 2
understanding of business principles
- importance or benefit of the study to the researcher(s) (1 mark)
- importance OR benefit of the study to the organisation being
investigated (1 mark)
3
Aim and Objectives of the project
• Aim is concise and gives clear direction to the project (1 mark)

• Two SMART objectives related to the aim (2 marks)
2. Literature Review [8 marks]
• Literature review is derived from two relevant and reliable academic 2

sources
• Provides understanding and insights into the key concepts being studied 2
- provides accurate definition of the key concepts being studies
(2 marks)
- provides vague/insufficient/inadequate definition of key concepts
being studied (1 mark)
• Literature review provides a thorough treatment of academic works 4

related to the research objectives
- the discussion of the academic works fully addresses
issues/proposals/recommendations/observations/findings related to
two research objectives (4 marks)
one research objective and partially addresses the other (3 marks)
only one research objective (2 marks)
- discussion of the academic works partially addresses
two research objectives (2 marks)
- the discussion of the academic works partially addresses
one research objective (1 mark)

NOT FOR TEACHING
MARKS
3. Methodology [7 marks]
• Research approach/design identified 1
- identification of approach/design (examples include: quantitative,
descriptive, case study, observation, survey) (1 mark)
• Research approach/design justified
2
- justification of approach/design using TWO relevant
reasons/explanations (2 marks)
- justification of approach/design using ONE relevant
reason/explanation (1 mark)
• Research methodology 3
- describes ALL the following: data collection procedure, sample or
data source, data collection instrument(s) (3 marks)
- describes TWO of the following: data collection procedure, sample or
data source, data collection instrument(s) (2 marks)
- describes ONE of the following: data collection procedure, sample or
data source, data collection instrument(s) (1 mark)
• Research Instrument 1
- a copy of the data collection instrument(s) is provided in the
appendices (where secondary sources are used a screen shot of the
identification page from the data source should be placed in the
appendices) (1 mark)
4. Presentation of Data [11 marks]
• Data presented is relevant to the objectives of the project 4
- data presented addresses all the issues related to both objectives
(4 marks, 2 marks per objective)
- data presented addresses all the issues related to one and most
related to the other objective (3 marks)
- data presented addresses most of the issues related to both
objectives (2 marks)
- data presented addresses some of the issues related to one objective
(1 mark)
• Data is accurate
4
- ALL calculations and/or inputs to the tables/graphs/charts are
correct (2 marks per objective)
- most calculations and/or inputs to the tables/graphs/charts are
correct (1 mark per objective)
• Data presented in appropriately labelled tables, charts and graphs 3
- use of THREE different data presentation formats appropriately
labelled (3 marks)
- use of THREE different data presentation formats inappropriately
labelled (2 marks)
- use of ONE or TWO different data presentation formats (1 mark)

NOT FOR TEACHING
MARKS
5a. Analysis of Data [3 marks]
• Data are summarized accurately using descriptive statistics 3

- data accurately summarised for at least THREE of the data
presentation formats (3 marks)
- data accurately summarised for TWO of the data presentation
formats (2 marks)
- data accurately summarised for only ONE of the data presentation
formats (1 mark)
Note:
1. Suggested data summary statements may include percentages,

fractions, mean, mode, median, standard deviation, data items in
extremes, similarities, dissimilarities.
2. Students cannot be awarded the mark for merely repeating any data
that is already given in the table.
5b. Interpretation of Results [6 marks]
• Explanation of the results of the study presented in Section 5(a) above 3

- THREE explanation points (3marks)
- TWO explanation points (2 marks)
- ONE explanation point (1 mark)
Note:
The explanation should give some possible reasons for or implications of

the results of the study. An appropriate explanatory statement may be
“the results show that the sales staff had a higher motivation score than
the production staff. The reason for this could be that the sales staff
received bonuses while the production staff had a fixed salary rate”.
• Comparison of the results with issues previously discussed in the Literature 3

review in Section 2
- comparison of results incorporates at least three issues raised in the
literature review (3 marks)
- comparison of results incorporates at least two issues raised in the
literature review (2 marks)
- comparison of results incorporates at least one issue raised in the
literature review (1 mark)

NOT FOR TEACHING
MARKS
6. Conclusions and Recommendations [6 marks]
• Conclusions are logical and based on findings 2
- TWO conclusions based on the findings (2 marks)
• Recommendations are realistic and informed by findings 2
- TWO recommendations of either:
solutions to the problem found in the research OR
suggestions of ways to improve or enhance what is being done
(2 marks)
• Guidelines for implementing the recommendations 2
- ONE suggestion for implementing the recommendation (1 mark)
- ONE benefit for implementing the recommendation (1 mark)
7. Communication of information in a logical way using correct grammar [5 marks]

• Consistently used correct spelling 1
• Consistently used correct grammar
2
- correctly used grammar all/most of the time (2 marks)
- correct use of grammar some of the time (1 mark)
• Expression of ideas clear, concise and coherent 2
- candidate expresses ideas clearly/concisely (1 mark)
- candidate’s ideas flow in a logical sequence (1 mark)
8. References and Citations [ 3 marks]

• Acknowledges sources throughout the project (citation must be correctly 1
done)
• References for publications written in alphabetical order and include 1
names of authors, publishers, and dates of publication. The APA format
should be used.
• References for internet sites include title of article, address of website, 1
names of authors or organization. The APA format should be used.
9. Overall Presentation of Report [ 4 marks]

• Report is within the recommended word limit of 1500 words excluding 1
cover page, title page, table of contents, diagrams and tables, references,
appendices
(Note: 10 per cent of the score awarded will be deducted for exceeding the
word limit)
• Layout of the report follows correct format (1 mark), includes a table of 3
contents (1 mark) and cover page with relevant information (1 mark).
TOTAL 60 marks

NOT FOR TEACHING
Paper 032 (1 hour 30 minutes)
1. Number of Questions
This Paper is based on a case study. The paper consists of three compulsory questions. The
three questions may be divided into parts.
2. Skills to be Assessed
The paper tests skills in research, analysis, evaluation and presentation, similar to those
assessed in the School-Based Assessment (Paper 031).
1. Knowledge and Understanding: candidate’s ability to demonstrate knowledge

and understanding of the objectives being
assessed in the Module.
2. Application: candidate’s ability to collect, classify and

communicate information.
3. Analysis: candidate’s ability to distinguish relationships

among components of the business
environment.
4. Evaluation and Reasoned candidate’s ability to interpret, make

Judgement: judgement and recommendations appropriate
to the business under investigation.
5. Presentation: candidate’s ability to present the report using,

where necessary, relevant charts, tables and
graphs.
5. Question Type
Candidates will be required to respond to a case with issues that are likely to occur in the
operation of a business.
Each question requires candidates to respond either in the form of an extended essay or a
short paragraph.
Candidates would be expected to:
(a) formulate aims and SMART objectives;
(b) apply relevant considerations in the preparation of a literature review focusing on

issues such as; purpose, sources, citations, paraphrasing information versus using
direct quotes, writing in the third person;
(c) create a research design, methodology and procedures:
(i) identification of approach/design, (for example, quantitative, descriptive,

observation study, survey);

NOT FOR TEACHING
(ii) sample (for example, size and characteristics, description, location,

department);
(iii) sampling techniques (for example, random, convenience, purposive);
(iv) design of data collection instruments, (for example, questionnaire,

observation schedule, checklist, interview schedule); and,
(v) data collection methods.
(d) present data in tables or charts/graphs;
(e) discuss, analyse and interpret data relevant to the research objectives;
(f) draw conclusions and make recommendations based on the case; and,
(g) write appropriate reference list using the APA format.
6. Mark Allocation
The paper is worth 60 marks (20 marks per question) and contributes 20 per cent towards the
final assessment. The marks for questions 1, 2 and 3 will be allocated to Module 1, 2 and 3
respectively.
7. Award of Marks
Marks are awarded for content, expression and organisation.
 REGULATIONS FOR PRIVATE CANDIDATES
Private candidates will be required to write Papers 01, 02 and Paper 032 the Alternative to the SBA.
Candidates entered for the examination through private institutions recognized by the Council will be
required to complete all the requirements of the syllabus.
 REGULATIONS FOR RESIT CANDIDATES
CAPE® candidates may reuse any moderated SBA score within a two-year period. In order to assist
candidates in making decisions about whether or not to reuse a moderated SBA score, the Council will
continue to indicate on the preliminary results if a candidate’s moderated SBA score is less than 50 per
cent in a particular Unit. Candidates re-using SBA scores should register as “Re-sit candidates” and
must provide the previous candidate number when registering.

NOT FOR TEACHING
 ASSESSMENT GRID
The Assessment Grid for each Unit showing marks assigned to each paper and to each Module, and
the percentage contribution of each paper to the total scores.
Papers Module 1 Module 2 Module 3 Total (%)

External Assessment
Paper 01 15 (30) 15 (30) 15 (30) 45 (90) (30)
Multiple-choice questions
Paper 02
Essay/Extended Response 25 (50) 25 (50) 25 (50) 75 (150) (50)
School-Based Assessment
Paper 031 or 20 20 20 60 (20)
Paper 032
Total 100 100 100 300 (100)
(Weighted scores are in brackets)

NOT FOR TEACHING
APPENDIX I
 GLOSSARY
WORD DEFINITION/MEANING
Account for Explain the reasons for, giving an indication of all relevant circumstances.
Very different from ‘Give an account of’, which asks only for a detailed
description.
Analyse Study in depth, identifying and describing in detail the main characteristics.
Assess Examine closely, with a view to measuring or ‘weighing up’ a particular

situation. Consider in a balanced way: strengths and weaknesses, points
for and against. In conclusion, state your judgement clearly.
Comment State clearly and in a moderate fashion your opinions on the material in
question. Support your views with references to suitable evidence or with
explanation as appropriate.
Compare Look for qualities or characteristics that resemble each other. Emphasize
similarities but be aware also of points of differences.
Contrast Stress the dissimilarities and differences between the items in question,
but do not ignore points of similarities.
Criticise Express your balanced judgement about the merit or truth of the material
in question. Give the results of your scrutiny, establishing both strengths
and weaknesses. Be specific.
Define Give, concise, clear and authoritative meanings. Do not give too many
details, but be sure to state the limits of the definition. Show how the thing
you are defining differs from things in other categories.
Describe Recount, characterize, sketch or relate in sequence or story form.
Differentiate State or briefly explain those differences between or among items or

situations which can be used to define them or place them into different
categories.
Discuss Examine and analyse carefully, giving reasons pro and con, advantages and
disadvantages. Be complete, and give details. You must consider all sides
of the issue and reach a balanced conclusion.
Enumerate State in list or outline form, giving points concisely one by one.
Evaluate Carefully appraise the matter in hand, citing both advantages and
limitations. Emphasise the views of authorities as well as your personal
estimation.

NOT FOR TEACHING
WORD DEFINITION/MEANING
Explain Clarify, interpret and spell out the material you present. Give reasons for
important features or developments, and try to analyse causes.
How far… Similar to questions based on the “To what extent…” approach. Here you
are expected to make your case or present your material in the usual way.
Illustrate Use specific examples, allusions, figures or diagrams to explain,

demonstrate or clarify a problem, situation or view.
Interpret Translate, give examples of, express in simple terms or comment on a

subject, usually giving your judgement about it.
Justify Prove, make out a case or give reasons for decisions or conclusions, taking
pains to be convincing.
List As in ‘enumerate’, write an itemized series of concise statements.
Outline Provide a framework describing under main point and subordinate points,
omitting minor details and stressing the arrangement or classification of
the material.
Prove Establish that something is true by citing factual evidence or giving clear
reasons.
Relate Show how things are related to or connected with each other, or how one
causes another, correlates with another, or is like another.
Review Examine a subject critically, analysing and commenting on the important

points and stages of development.
State Present the main points in brief, clear sequences.
Summarise Give the main points or facts in condensed form, omitting details and
illustrations.
Trace Describe in narrative form, progress, development or sequence of events

from some point of origin.
Western Zone Office

17 August 2022

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APPENDIX III

SYLLABUS APPENDIX III

MANAGEMENT OF BUSINESS APPENDIX III

Correspondence related to the syllabus should be addressed to:

Telephone Number: + 1 (876) 630-5200

Copyright ©2022 by Caribbean Examinations Council

CXC A24/U2/22 www.cxc.org

SKILLS AND ABILITIES TO BE ASSESSED ................................................................................................... 2

STRUCTURE OF THE SYLLABUS ................................................................................................................ 3

UNIT 1: MANAGEMENT PRINCIPLES AND PROCESSES ........................................................................... 4

MODULE 1: BUSINESS AND ITS ENVIRONMENT ........................................................................ 4

UNIT 2: APPLICATIONS IN MANAGEMENT ........................................................................................... 24

MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT................................................ 24

OUTLINE OF ASSESSMENT .................................................................................................................... 44

REGULATIONS FOR PRIVATE CANDIDATES ........................................................................................... 55

REGULATIONS FOR RESIT CANDIDATES ................................................................................................ 55

ASSESSMENT GRID ................................................................................................................................ 55

APPENDIX I: GLOSSARY ......................................................................................................................... 57

CXC A24/U2/22 www.cxc.org

NOTE TO TEACHERS AND LEARNERS

This document CXC A24/U2/22 replaces CXC A24/U2/12 issued in 2012.

First issued 2003

Please check the website www.cxc.org for updates on CXC®’s syllabuses.

CXC A24/U2/22 www.cxc.org

T he Caribbean Advanced Proficiency Examination (CAPE®) is designed to provide certification of the

CXC A24/U2/22 i www.cxc.org

Management of Business Syllabus

CXC A24/U2/22 1 www.cxc.org

5. develop an understanding of the importance of the strategic management of organisations;

6. develop effective communication skills that support organisational success;

7. develop, interpret and present numerical, graphical and verbal data;

8. develop an appreciation of the value of utilising technologies in managing organisations;

 SKILLS AND ABILITIES TO BE ASSESSED

1. Knowledge and Comprehension;

2. Application and Analysis; and,

3. Synthesis and Evaluation.

Knowledge and Comprehension

The ability to:

Application and Analysis

The ability to:

CXC A24/U2/22 2 www.cxc.org

2. distinguish among various components of business and its environment; and,

Synthesis and Evaluation

The ability to address business problems issues and situations by:

 STRUCTURE OF THE SYLLABUS

Unit 1: Management Principles and Processes

Module 1 - Business and its Environment

Unit 2: Application in Management

Module 1 - Production and Operations Management

CXC A24/U2/22 3 www.cxc.org

 UNIT 1: MANAGEMENT PRINCIPLES AND PROCESSES

On completion of this Module, students should:

3. appreciate the importance of maintaining ethical standards in business practices;

6. understand the fundamentals of the strategic management process.

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

Types of Economic Activity

1. distinguish among different types of Classification and characteristics of economic

Economic Sectors and Legal Structures

(a) Private Sector Organisations: