Total marks: 100 · Duration: 2 hours
Instructions to candidates
- This paper consists of FIVE compulsory questions. Answer ALL questions.
- EACH question is worth 20 marks. Allow about 24 minutes per question.
- Questions 1 and 2 are on Organisational Principles (syllabus Sections 1–4), Questions 3 and 4 on Production, Marketing and Logistics (Sections 5–7), and Question 5 on Finance, Government and Technology (Sections 8–10).
- In the January 2027 sitting this paper is "hybrid": you read the questions on screen and write your answers in the answer booklet.
- Take some time before you start writing to read through the paper and plan your answers. Where a question says "explain", give a reason or example, not just a heading.
- A calculator may be used. Show all working.
Paper
Question 1
Marisol Baptiste is a pastry chef in San Fernando, Trinidad. She and her cousin Andre, an accountant, plan to start a catering business together as a partnership, supplying weddings, office functions and school events.
(a) (i) Define the term "partnership". (2 marks)
(ii) State THREE items that should be included in Marisol and Andre's Deed of Partnership. (3 marks)
(b) Explain TWO advantages and ONE disadvantage to Marisol of forming a partnership rather than operating as a sole trader. (6 marks)
(c) Outline FOUR factors Marisol and Andre should consider when choosing a location for their kitchen. (4 marks)
(d) State the purpose of a business plan, and explain TWO ways in which a business plan would help Marisol and Andre when they apply for a bank loan. (5 marks)
Total 20 marks
Question 2
Caribbean Cool Ltd is a beverage distributor in Bridgetown, Barbados, with 60 employees. The company has a tall organisational structure with seven levels of management. Over the past year absenteeism and labour turnover have risen, and a key supplier failed to deliver bottles on the date agreed in its contract.
(a) (i) Distinguish between a tall organisational structure and a flat organisational structure. (4 marks)
(ii) Explain TWO benefits Caribbean Cool Ltd could gain by moving to a flatter structure. (4 marks)
(b) Explain what is meant by the term "span of control". (2 marks)
(c) Explain TWO non-monetary methods the management could use to motivate employees and reduce absenteeism. (4 marks)
(d) (i) State FOUR essential elements of a valid contract. (4 marks)
(ii) Explain ONE remedy available to Caribbean Cool Ltd for the supplier's breach of contract. (2 marks)
Total 20 marks
Question 3
Island Harvest is an agro-processor in St Vincent that turns local breadfruit into gluten-free flour. Last month 12 workers produced 4800 kg of flour using hand-operated graters and sun-drying racks. This month, after installing an electric mill and a solar dryer, 9 workers produced 5400 kg.
(a) Name the FOUR factors of production and state the reward for EACH. (4 marks)
(b) Distinguish between labour-intensive and capital-intensive production, using Island Harvest's change as an example. (4 marks)
(c) (i) Calculate the labour productivity (kg per worker) at Island Harvest for EACH month. (2 marks)
(ii) Calculate the percentage change in labour productivity. (2 marks)
(d) Explain TWO ways Island Harvest could ensure the quality of its flour meets export standards. (4 marks)
(e) Explain TWO ways the processing plant could harm the environment, and suggest how EACH could be reduced. (4 marks)
Total 20 marks
Question 4
Spice Isle Sauces is a hot-pepper sauce maker in Grenada. It sells well in local supermarkets and now wants to export to Canada and the United Kingdom. The owner promotes the brand mainly through social media.
(a) (i) Define the term "market research". (2 marks)
(ii) Suggest ONE primary and ONE secondary method of market research Spice Isle Sauces could use before exporting. (2 marks)
(b) Explain how THREE elements of the marketing mix could be adapted for the export launch. (6 marks)
(c) (i) A bottle costs $8.00 to produce and the business adds a mark-up of 40%. Calculate the selling price of one bottle. (2 marks)
(ii) Explain ONE pricing strategy suitable for entering a new overseas market. (2 marks)
(d) Explain ONE advantage of sending the sauces by sea freight and ONE advantage of sending them by air freight. (4 marks)
(e) Explain why packaging is important when goods are transported over long distances. (2 marks)
Total 20 marks
Question 5
Ravi Persaud owns TechFix, a mobile-phone repair and accessories shop in Georgetown, Guyana. The following amounts are taken from his records for the year ended 31 December 2026.
| Item | $ |
|---|---|
| Sales | 80 000 |
| Opening inventory | 12 000 |
| Purchases | 48 000 |
| Closing inventory | 10 000 |
| Expenses | 18 500 |
(a) Calculate:
(i) the cost of sales (2 marks)
(ii) the gross profit (1 mark)
(iii) the net profit (1 mark)
(iv) the gross profit margin, as a percentage of sales. (2 marks)
(b) Ravi needs $25 000 to buy diagnostic equipment. Distinguish between short-term and long-term sources of finance, giving ONE example of each, and recommend which type he should use. (4 marks)
(c) Explain TWO ways in which the government could help small businesses such as TechFix. (4 marks)
(d) Ravi is thinking of selling accessories online. Explain TWO advantages and ONE disadvantage of e-commerce for TechFix. (6 marks)
Total 20 marks