CARIBBEAN EXAMINATIONS COUNCIL

CARIBBEAN ADVANCED PROFICIENCY EXAMINATION@

m2102160020
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TEST CODE 0 2 1

SUBJECT ENTREPRENEURSHIP - UNIT 1 — Paper 02

PROFICIENCY ADVANCED

REGISTRATION NUMBER

SCHOOL/CENTRE
NUMBER

NAME OF SCHOOL/CENTRE

CANDIDATE'S FULL NAME

(FIRST, MIDDLE, LAST)

DATE OF BIRTH

SIGNATURE
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TEST CODE 02160020¯1

FORM TP 2021233MAY/JUNE 2021

CARIBBEAN EXAMINATIONS COUNCIL

CARIBBEAN ADVANCED PROFICIENCY
EXAMINATION@

ENTREPRENEURSHIP

ENTREPRENEURIAL THEORY

UNIT 1 - Paper 02
2 hours and 45 minutes

READ THE FOLLOWING INSTRUCTIONS CAREFULLY.

1. This paper consists of SIX mini-case scenarios and questions, TWO from EACH
module.

2. Answer ALL questions.

3. Write your answers in the spaces provided in this booklet.

4. Do NOT write in the margins.

5. If you need to rewrite any answer and there is not enough space to do so on the
original page, you must use the extra lined page(s) provided at the back of this
booklet. Remember to draw a line through your original answer.

6. If you use the extra page(s) you MUST write the question number clearly
in the box provided at the top of the extra page(s) and, where relevant,
include the question part beside the answer.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.

Copyright 0 2020 Caribbean

Examinations
Council All rights
reserved.

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INSTRUCTION: Read EACH mini case and answer the questions that
follow.

MODULE 1: ENTREPRENEURIAL MINDSET

Case 1: Diverse Tourism

Phillip is a Dominican who dreams of a career that combines his love for
agriculture and tourism. Upon graduating from college, Phillip's parents gave him
two acres of land. He plans to create a farm with a focus on agro-tourism.
However, he is unsure as to the potential risks involved in starting such a venture,
given his lack of knowledge and experience in business management. Phillip
intends to approach the local government business agency for start-up capital.

1. (a) Identify the type of entrepreneur that BEST describes Phillip, justifying your
response with TWO reasons from the case.

[3 marks]

(b) Outline, using evidence from the case, THREE entrepreneurial

characteristics displayed by Phillip.

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[6 marks]

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 (c) Explain TWO measures that Phillip could implement which are likely to contribute to his
success as an entrepreneur.

[6 marks]

Total 15 marks

Case 2,: Hair Innovator

Tony is one of two owners of a small hair salon. He considers himselfa visionary and works hard to attain his
goals. He invests in emerging innovative products in the hair industry by forming partnerships with local and
international beauty companies. Tony has become known for his creative hair styles as he constantly
experiments with new styles and tries to cater to the demands of diverse groups. A local newspaper recently
featured him as 'Small Business Manager of the Year'; however, Tony prides himself as an entrepreneur.

2. (a) Explain the meaning of the term 'entrepreneurship'.

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[3 marks]

(b) Using information from the case, justify the following statement. "Tony can be
considered a habitual entrepreneur".

[2 marks]

(c) Since Tony prides himself as an entrepreneur, outline, based on the case, TWO myths
of entrepreneurship that he is NOT likely to believe.

[4 marks]

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I IIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIl IIII
(d) Compare THREE roles of a small business manager with that of an entrepreneur.

[6 marks]

Total 15 marks
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MODULE 2: THE ENTREPRENEURIAL PROCESS

Case 3: Young Problem Solvers

Kevin and Marcus are university students with a keen entrepreneurial spirit. They observed an increase
in student intake following the introduction of a tuition-free, government education programme. While
there was increased student enrollment, there was a lack of barbering services on campus. They decided
to converse with a group of male and female students who rent apartments, both on and off campus, to
discuss their observations. They used the information as a guide to determine various solutions for the
lack of barbering services, including opening an 'on campus barber salon'. The salon will also target
students from parishes external to the university's location. Additionally, due to the availability ofWi-Fi
on campus, appointments could be made online, thereby eliminating potentially long waiting periods.

3. (a) (i) Define the term 'business concept'.

[3 marks]

(ii) Describe Kevin and Marcus' business concept.

[3 marks]

(b) Explain ONE opportunity identification source, mentioned in the case, from which Kevin
and Marcus plan to benefit.
 [3 marks]

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I IIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII II III IIIII IIIl IIII
(c) Explain the TWO methods of idea generation used by Kevin and Marcus. Use evidence from the
case to justify your response.

[6 marks]
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Total 15 marks

Case 4: Lifelong Entrepreneur

Rochelle is a successful, small business entrepreneur. Her son recently joined the business and is
acquiring essential management skills, in preparation to operate the business when his mother retires.
The business started twenty years ago, with a simple idea of converting water bottle caps into reusable,
personalized drinking cups. Rochelle quickly realized that having a business idea alone would not
guarantee success. As such, she conceptualized her idea by answering key questions that would solidify
her business idea and make it a feasible business opportunity.

To further ensure the success of her business, Rochelle assessed the necessary resources and initially
thought of operating the business at her home. This proved problematic, since the proposed
infrastructure was inadequate. Rochelle hoped her successes and failures would inspire future young
entrepreneurs.

4. (a) State FIVE key questions that Rochelle should have answered in order to move her business idea
to a business concept.

[5 marksl

(b) (i) Outline ONE mistake, mentioned in the case, that Rochelle made while evaluating the
required resources for her business venture.

[2 marks]
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 (ii) Outline ONE positive resource acquisition move that Rochelle made which is
mentioned in the case.

[2 marks]

(c) (i) Define the term 'harvesting the venture' in the entrepreneurial process.

[2 marks] (ii)

Explain the harvesting strategy used by Rochelle in the case.

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[4 marks]

Total 15 marks

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MODULE 3: CREATIVITY AND INNOVATION

Case 5: Cooler to the rescue

Kureen is a Trinidadian who holds degrees in electrical and mechanical engineering. She can be
described as creative, hardworking and a problem solver. She comes from a family of avid campers and
she continuously aims to find ways to alleviate some of the inconveniences of camping. Consequently,
using her expertise and creativity, she developed a multi-functional cooler. The cooler is outfitted with
the capabilities to store cold drinks and heat water using a battery-operated system. The product is now
sold on the local market and there are currently no competitors. She initially employed five workers;
however, sales increased exponentially, leading to a present staff of twenty individuals. She hopes to
continue using her creativity to create new products, which can alleviate a variety of problems
encountered by citizens of her country.

5. (a) Identify the core innovation concept described in the case.

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 [1
m

ark] (b) Define the term 'creativity' as it relates to

entrepreneurship.

[2
m
arks]

(c) Explain TWO ways in which Kureen's creativity is demonstrated in the case.

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[6 marks]

(d) Explain, using evidence from the case, the TWO components thåt influenced Kureen's creativity.

[6 marks]
Total
15 marks

6002013

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Case 6: Innovative
Dr. Louis is a cardiologist and bio-medical engineer. His main goal was to find ways to detect early
signs of heart disease. He generated an idea to create a pocket size electrocardiogram (ECG) machine
to check the heart rhythm and electrical activity of high risk individuals. The machine utilizes similar
technology to that of finger scanners and features an email application which facilitates sending results
to doctors. Dr. Louis enlisted the assistance of a colleague to evaluate the viability of the machine and
the assistance of his wife, who is a business manager, to evaluate the business idea. An evaluation of
the commercial feasibility was also conducted and the product was subsequently launched. One year
later, a large medical equipment company released a similar product. Dr. Louis sought legal counsel in
order to ascertain how he could stop the company from producing its product. However, since he had
never obtained intellectual property rights for his product, he was left vulnerable. Within six months,
Dr. Louis' company profits declined by twenty-five percent and two other companies launched similar
products over a two-year period.

6. (a) Using supporting evidence from the case, outline TWO consequences that Dr. Louis endured
because of the lack of intellectual property rights for his product.

[4 marks]

(b) Using evidence from the case, outline TWO steps taken by Dr. Louis in his innovation
process.

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 [4 marks]

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(c) Explain why copyright is an INAPPROPRIATE intellectual property right for protecting Dr.
Louis' innovation.

[3 marks]

(d) Discuss the MOST appropriate type of intellectual property right that Dr. Louis could have
utilized to protect his innovation.

[3 marks]

Total 15 marks

END OF TEST

IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST,

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 EXTRA SPACE

If you use this extra page, you MUST write the question number clearly in the box provided.

Question No.
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