Page 36 - THE CARIBBEAN ADVANCED PROFICIENCY EXAMINATIONS

UNIT 2
MODULE 3: MANAGING AND GROWING THE VENTURE (cont’d)

4. Venture Valuation Methods

Including but not limited to:

(i) book value (balance sheet value);

(ii) price earnings (multiple earnings value); and,

(iii) discounted future earnings (discounted cash flow).

5. E-Commerce and Growing the Venture

(a) The Internet and its impact on venture development:

(i) speed and flexibility;

(ii) less emphasis on size/space;

(iii) high volume; and,

(iv) low margin.

(b) Approaches to E-Commerce:

(i) on-line shopping malls;

(ii) virtual communities - store-front services;

(iii) internet service providers (partnership with existing online payment facilities
(pay pal); and,

(iv) private initiative:

- hiring a professional to customise a website for the venture; and,

- building a site in-house.

(c) Elements to consider before launching into E-Commerce:

(i) networking potential;

(ii) integration of web into overall strategy;

(iii) importance of lasting relationship with customers;

CXC A31/U2/13 31 www.cxc.org