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D2160010/MJ/CAPE :m:? I

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 CANDIDATE-PLEASENOTE TEST CODE 02160010D
on the line below and retur
PRINTotet
yom with year apswer shet. Fallare to MAYIJUNE 2020
FORM TP 2020232 iication.

COUNCIL
CARIBBEAN E XAMINATIONS
PROFICIENCY EXAMINATION
CARIBBEAN ADVANCED

ENTREPRENEURSHIP

UNIT1-Paper 01
I hour 30 minutes

12 JUNE 2020 (a.m.))

CAREFULLY.
READ THE FOLLOWING INSTRUCTIONS

You will have l hour and 30 minutes to answer them.

This test consists of 45 items.

should have an answer sheet.

2. In addition to this test booklet, you
there are items
sheet provides spaces for more answers than
3. Do not be concerned that the answer

in this test.

answers lettered (A), (B), (C), (D). Read each item

4. Each item in this test has four suggested
and decide which choice is best
you are about to answer
to your item and shade the space
On answer find the number which corresponds
sheet,
. your Look at the sample item below.
a s the a n s w e r you have chosen.
having the same letter

Sample ltem
One of the major challenges online
retailers experience is SampleAnswer
A) tracking sales results
(8) managing communication
to service
( the capacity enhance customer
(D) the ability to maintain sufficient stock levels

ability to maintain sufticient stock levels",

so (D) has been
The best answer to this item is "the
shaded.
fill in your new choice.
6. If you want to change your answer, erase it completely before you
as quickly and carefully you as can. If
When you are told to begin, turm the page and work
as
. item later.
on to the next one. You may return
to that
you cannot answer an item, go

3. You may do any rough work in this booklet.

9. not necessarily drawn to scale.

Figures are
 -2-

1. The thought processes of intrapreneurial 5. The owner of the Mottley

and entrepreneurial ventures are similar in Group
of
companies has currently diversified his
characteristics, EXCEPT for their focus on venture. This owner would be considered

(A) innovative thinking

(B)restorative thinking (A) portfolio entrepreneur
(C) risk-taking thinking (B) nascent entrepreneur
(D) creative thinking
(C) novice entrepreneur
(D) serial entrepreneur

2. Drivers of contemporary entrepreneurship

include 5. Which of the following attributes BEST
describes an entrepreneur?
technology
globalization (A) Gentle
a stable demand (B) Humble
(C) VisionaryY
(A) I and lI only (D) Risk averse
I and
B)
1lI only
(C)Il and 1ll only
(D) 1, Il and Some students are having adiscussion about
entrepreneurship in the school's cafeteria.
Which of the following points made by
Which of
is the
the following
MAJOR difference
factors them is true?
between
and small business Not all
entrepreneurship
management?
(A)
(B)
entrepreneurs are
Engaging in entrepreneurship is
rich.
ensy.
A) Growth C) Successful
(B) Innovation
entrepreneurs must start
witha great idea.
(C) Size of business (D) Only money is needed to start an
D) Management style entrepreneurial venture.

Which of the following actions is crucial 8. A govermment decided to encourage

has
if an entrepreneur wants to avoid pitfalls? entrepreneurship among its population.
On which of the following should the
A) Work hard. government focus?

(B) Possess a sense of humour.

Know the business in depth. (A) Maintaining demands
Kep an open communication. (B) Encouraging globalization
(C) Encouraging male involvement in
business
(D) Encouraging and rewarding
creativity in all areas of life
 at the end 12. Which of the following is a benefit of
George reviews his finances cultural diversity in an entrepreneurial
the resources
of each ycar to determine
business in the venture?
needed to
improve his
following year. Which characteristic of
entrepreneurship is George displaying? (A) More jobs in the workforce
(B) Homogeneity in the workplace
the samec types of
(A) Hard-working (C) More
of
employees
(8) Self-confident (D) A rich blend of perspectives and
(C) Systematic planner skills in the workplace
(D) Achievement-oriented

3. Which of the following factors are

in
10. Which of the following are potential key drivers of cultural diversity
mistakes that entrepreneurs could make? entrepreneurship?

Focusing too much on the customer (A) Family and age

Performing inadequate market Gender and youth
11. (B)
research (C) Ethnicity and politics
the venture(s) with limited (D) Technology and religion
II. Entering
experience
14. The first economist to formulate the term
(A) I and II only
entrepreneur was
(B) Tand ill only

C and ll only
(D) 1, II and I (A) Peter Drucker
(B) Jean BaptisteSay
Richard Cantillon
(C)
(D) Joseph Schumpeter
An entrepreneurial venture failed because
of poor
process planning and
These
inventory
of lailures are
management. types
15. The reason why there are fewer female
classified as

than maleentrepreneurs in the Caribbean

(A) financial is because women generally

6 marketing (A) are more risk averse that men

() operationa are not successful in business
(D) human resource management (8) are not good at negotiating in
(C)
business
(D)need more enterpreneurial support
than
men
 4-

0. Due to an amendment ina country's

6. The method of generating ideas from a

and discussion
legislation to curtail pollution, a company
interaction
group through that produces developed a
bottled water
iscalled
thinner, flexible plastic bottle which is

(A) 8roup work easilydisposed. Thissource of opportunity

is considered to be the result of
(B) corespondence
(C) brainstorming
(D)screeningideas (A) new technology
market
(8) emerging
an

(C) a regulatory change

17. The following are some steps in the ( D ) a demographic trend
entrepreneurial process.

Opportunity identification Which of the following factors should be

LEAST important in the evaluation of a
I. Venture implementation
. Tdea generation venture opportunity?

What is the correct sequencing of these (A) Industry

steps in the entrepreneurial process? (8) Ethnicity
(C) omics advantage
eritive
(A) 1, I1, I1 (D) mpet
(B) I1, 1, 1
(C) l1, 1,
(D) 1 , 11,T 2. "At this stage. businesses need to create
a
legal structure, secure
market access,
and
raise equity and
secure financing.
8. There is an increase in the aging population hire management/staff."
inthe Caribbean which creates opportunities
for entrepreneurs. Which of the follow- To which of the following stages in
ing BEST describes the source of these developing a
business concept from an
idea does the above statement refer?
opportunities?

(A) Market changes (A) Harvesting8

(B) New technologies (B) Idea generation
(C) Perceptualchanges (C) Business operation
(D) Demographie changes (D) Business plan formulation

19. Which of the following methods of idea 3. New organizational structures, new
generation focuses on developing new distribution channels, and new production
ideas when the individuals are unaware of processes are BEST described as sources
the problem being addressed'? of new

(A) Problem inventory (A) profit margins

(B) Gordon method (B) business concepts
(C) Delphi method (C)marketing challenges
(P) F9GUS gTOVP (D) competitor challenges
 5-

A Which of the is
NOT
following questionsbusiness 28. Which of the folowing are
DISADVAN-
when developing a TAGES experienced by partnerships when
necessary seeking expansion of their capital base
concept? of a new partner?
through the admission
(A) What is the product?
Sharing of profits
(B) Who will buy the product? Loss of control over operations
Who will be the competitors
(C) What will be the name of the Simplification of future direction
(D)
company?
(A) 1 and Il only
(B) l and lll only
Which of the following is NOT an option (C) a n d lll only
5.
for harvesting a business venture? (D) 1, Il and II

(A) Amerger
Which of the following factors should an
(B) Liquidation
(C) Adopting an ESO plan entrepreneur consider
when implementing
and managing a venture?
(D) Installing a new board of directors
(A) Achievementofperformance goals
Which of the following should determine (B) Development of the business
the choice of a distribution channel? concept
(C) Investment in personal assets

(A) of (D) Monitoring of resource providers

(B)
Type product
Sources of inputs
C) Management style
(D) Organizational structure 0. The planned discontinuation of a product
at the end of its life cycle, while extracting
maximum profit from its sales is called

27. Joyann Williams has been a successful

entrepreneur for years. She has decided (A) reaping

to retire from business and does not want (B) extension

the venture to continue. The recommended (C) harvesting

exit strategy for her would be (D) resourcing

(A) transfer of ownership to family

members
B) private sale to the management team
(C) sale to a foreign investor
liquidation of assets
 6-

31. Which ofthe following describe the impor- 34. Using newcomponents with different design
tance of innovation in entrepreneurship? concepts of a product line is known as

is the vehicle through A) marketing skill

Innovation
which the entrepreneur creates (B) modular innovation
new avenues for wealth genera (C) entrepreneurial talent
tion. (D) market segmentation

Innovation provides a means for

the entrepreneur to transform
ideas into saleable solutions. 35. Which of the following is considered
Innovation enables the a demographic factor that influences
entrepreneur innovation?
to target new customers and
markets.
A) Crime level
Iand II only Interest rate
(A)
I and Ill only (C) Age distribution of population
(C) II and Il only (D) Buying behaviour of customers
(D)1,1l and III
Which of the following initiatives can
32. a supportive policy
Arestaurant owneris trying to developanew
She a competition
be considered
for govemment, to encourage
menu. decides start
to
for persons to develop their own menu and
development
innovation?
the person whose dishes are judged to be
the best, wins. In what type of innovation Stricter regulations on imports
is the restaurant owner engaged? The introduction of science parks

Serial I.
and incubators
of
A Redesign higher learning
Open institutions' curricula
Disruptive
(D) Incremental (A) and I only
(B) I and
ll only
(C) Il and Ill only
33.
Which ofthe following typesofinnovation (D) 1. Il and II
is defined as "the reconfiguration of an
established system to link together existing
components in a new way"? 37. Six months ago, Johnson noticed that his
clientswere purchasinglaptops. Today they
(A) Modular are only purchasing notebooks and tablets.
(B) Disruptive This is an example of a change in
(C) Incremental
(D) Architectural (A) trade laws

(B) behaviours
(C)
(D)
political rules
business models
 7

which level within the organization is 42. Which of the following sources of
At innovation has led to an increase in the
nnovation BEST applied?
number of all-inclusive hotels?

A) Micro
B) Macro (A) Deregulation
Fomal
(B) New technology
New political rules
D) General C)
D) Changes in business models

Jalani Pierce designs his own line of

merchandise which caries his JP logo. He 43. A patent can be defined as
recently discovered an imitation on the
market and decided to take legal steps to (A) partners sharing risks and dividing
protect his intellectual property (IP) rights. rewards via business ventures
Which of the following options is MOST (B) a
legal monopoly that protects
appropriate for him to use?
published orunpublishedoriginal
work
(A) Patent (C) the marketing practice of creating
(B) Franchise a name, symbol or design that
C) Branding identifies and diferentiates one
(D) Registered trademark product from another
(D)anexclusive right for making, using
or selling a concept
or invention
Which of the following is a 'deal" between and excluding others from doing
an inventor and the govemment in which the the same
inventor is allowed a short-term monopoly
in return for allowing the invention to be
made public? 44. The process of creativity can be stifled by

(A) (A) seeing problems as challenges

Licence
(B) Copyright (B) expecting and accepting failure
failures
(D)
Trademark
Trade secret
)
(D)
being afraid ofmistakes and
finding usual connections between
things

Which of the following is NOT a

condition for encouraging 45. Whichofthe following intellectual property
micro-level
innovation? (IP) rights would an entrepreneur use to
legally protect a newly created process of
(A) Internal policy manufacturing edible oil?
Internal governance
(6)
(A) Trade secret
(C) Innovation incentive
(D) Listening to the customer B) Franchise
C) Copyright
(D) Branding

END OFTEST
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CAPE Entrep.
2016 U1 P1

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