Page 30 - THE CARIBBEAN ADVANCED PROFICIENCY EXAMINATIONS

UNIT 2
MODULE 2: NEW VENTURE PLANNING AND CREATION (cont’d)

(viii) cultural feasibility.

(d) Distinguishing features of market research and feasibility analysis.

3. Start-up capital and Financial Statements

(a) Sources of funding: equity financing, debt financing (loans, venture funding, angel
funding), grants, gifts, bequests.

(b) Simple review of accounting cycle (including accounting concepts).

(c) Simple Statement Cash Flow (should be used to support the business model).

(d) Statement of Comprehensive Income (Income statement), Statement of Financial
Position (Balance Sheet).

(e) Break-even analysis; (appreciate significance of break-even value).

(f) Savings and investments options (including stocks and bonds, fixed deposits, treasury
bills).

4. Developing the Business Model

(a) Description of a business model.

(b) Components of a business model:

(i) Value proposition (how do you create value?):

- product offering: good, service or combination of both;

- standardised or customised;

- direct or indirect distribution; and,

- internal manufacturing or outsourcing.

(ii) Beneficiary (for whom do you create value?):

- business to business, business to consumer or both; and,

- local, regional or international; general or niche market.

CXC A31/U2/13 25 www.cxc.org