Page 114 - THE CARIBBEAN ADVANCED PROFICIENCY EXAMINATIONS

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INSTRUCTION: Read EACH case and answer the questions which follow.

MODULE 1: ESSENTIALS OF BUSINESS OWNERSHIP

Case 1: Jackson’s Big Decision

Jackson, a college student, worked two part-time jobs, one with a newspaper and the other with a pet shop. DO NOT WRITE IN THIS AREA
On graduating, he accepted a full-time position as a reporter with the newspaper company from which
Mr Briggs, the owner, was retiring and selling the business for $300 000. He was excited at the prospect
of buying the venture, given his experience. At the pet shop, Jackson was responsible for cleaning the
animals and their cages, feeding them, ensuring that they had adequate shelter, got their medication on
time and were generally healthy. Most of all, he ensured that the animals were treated kindly.

To be able to buy the newspaper company, he estimated that he could save $100 000 this year from his
wages; he would also take a loan from his parents and then negotiate the selling price with Mr Briggs.
Additionally, his friend Mark, who had experience in running a small business, was willing to invest in
this business venture. Jackson agreed to work with Mark on this venture given their access to funds,
competence and his love for this line of work.

1. (a) With Jackson and Mark deciding to form a partnership, what is the name of the document
which will form the basis of their relationship?

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[1 mark]

(b) Outline FIVE advantages of this type of venture.

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[10 marks]
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