This should be a very helpful guide to you all :) I hope you all get full marks as I did.

1.
PRINCIPLES OF BUSINESS
SCHOOL BASED ASSESSMENT
ESTABLISHING A BUSINESS:
PRODUCTION
STUDENT’S NAME: JANADE L J FLETCHER
REGISTRATION NUMBER:
NAME OF SCHOOL: HOLY FAITH CONVENT COUVA
TERRITORY: TRINIDAD
YEAR: 2018

2. TABLE OF CONTENTS
CONTENTS PAGE
Description of the business
Justification of location
Selection of appropriate labour
Sources of fixed and working capital
Role of the entrepreneur
Type of production
Levels of production
Quality control measures
Use of technology
Linkages
Potential for growth
Government Regulations
Ethical Issues
Bibliography
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3. DESCRIPTION OF THE BUSINESS
↓↓↓↓↓↓↓↓↓↓
The business that would be carried out would be a private limited business which
is a small to medium-sized business that is owned by 1-50 shareholders. The name
of the business will be J’s Makeover Limited in which makeup will be done for
individuals but the main focus will be on selling my own facial products.
The objectives of the business would be transforming the customer’s face into a
completely different and unique appearance. The products to be sold will be facial
masks, facial washes and facial moisturizers. The mission of this business is to
bring out beauty that has been hiding for a period of time.
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4.
JUSTIFICATION OF LOCATION
My chosen location for this business will be Prize Plaza, Endeavour Road,
Chaguanas, and my reason for this is because:
● It is located in a central area which makes it very accessible for customers
living in various areas of the country.
● The rate of population in this area is very high which means that there will
be a lot of customers for me to sell my products to, leading to potentially
high sales .
● Last but not least, there are no other stores in that area where facial
products are sold and this gives me a competitive advantage in
accomplishing my business objectives.
3

5.
SELECTION OF APPROPRIATE LABOUR
The appropriate type of labour needed for this business would be skilled, so that
customers are pleased with the products; professional so that the business stays
under control and semi-skilled to meet basic needs of the business. The number of
workers to be employed will most likely be at least 10 individuals.
The table below shows their duties.
POSITION TYPE OF
LABOUR
NO.OF
EMPLOYEES
DUTIES
Manager professional 1
To direct and
control the
organisation’s
resources to
achieve the
objectives of the
organisations
Security skilled 2 To secure the
business at all
times
Makeup Artist professional 4 To apply makeup
on customers and
produce the facial
products
Janitor
Cashier
Semi-skilled
skilled
2
1
To ensure that the
surroundings are
clean
To handle all
payments.
4

6. SOURCES OF FIXED AND WORKING CAPITAL
Fixed Capital ↓↓
Fixed capital are assets such as buildings, machinery and computers which will be
kept for a long time and used many times in the production process. Sources of
fixed capital are:
A loan of $500 000 (five hundred thousand dollars) will be borrowed from the
Republic bank for the purchase of equipment such as brushes, mirrors, etc. and for
the payment of rent for the building.
Working Capital ↓↓
Working capital are stocks of materials, goods and cash needed for the day-to-day
running of the business. Sources of working capital are:
A sum of $500,000 from my personal savings will be used to help finance the
business.
5

7. ​ ROLE OF THE ENTREPRENEUR
​ According to the Principles of Business for CSEC, an entrepreneur is one
who shows vision and creativity, taking the financial risk of starting and managing
a new business venture.
● One of the important functions performed by the entrepreneur is to create
and attract consumers in innovative ways. The packaging and labelling of
the products by this business will be very distinct from other products to
attract customers.
● ​The entrepreneur will be responsible for the management of the ​ ​business.
When the production processes of this business are managed properly, the
income will increase.
● The entrepreneur will be responsible for leading by example and motivating
workers. In this way, teamwork and communication flows of this business
can be improved.
6

8. TYPE OF PRODUCTION
​ This business will be engaged and operated in two types of production.
1. The secondary production which is the second stage of production and it
involves transforming the raw materials from the extractive industry also
known as the primary industry into a finished product. Natural and organic
ingredients will be purchased from various companies and will then be
transformed into a finished product.
2. The tertiary production, whereby the makeovers will be done as a service to
customers.
7

9. LEVELS OF PRODUCTION
The production level of this business will be managed at the domestic level of
production simply because all of the products will be produced for local use.
This business is most likely to be a small-scale business because there will be a
small number of employees, the physical size and space of the business is small
as well as the volume of projected sales and value of stock.
8

10. ​ ​QUALITY CONTROL MEASURES
Two quality control measures for this business will be:
● Labels must be placed on all of the products listing the ingredients clearly so
that customers with allergies can be aware of what to purchase or apply
unto face.
● Inspections must be made on the ingredients used to create the products to
make sure that they are relevant for the human body .
9

11. USE OF TECHNOLOGY
Two technologies to be used to enhance the efficiency of this business will be:
● Security cameras which will be placed all around the building to provide
security for the business as well as providing video footage of any events
which may happen.
● A telephone at the front desk to place orders for raw materials for producing
and also for obtaining and giving information to and from customers.
10

12. LINKAGES
​The type of linkage this company would be engaged in is backward linkage
whereby one industry has to depend on another for the supply of its raw materials.
The raw materials such as natural and organic ingredients will be used in the
mixture of all the products.
This business will benefit from this linkage because there will be easy access to get
the raw material and have it easily transformed for the finished product.
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13. POTENTIAL FOR GROWTH
The potential for this business is to grow massively within at least two years both
internally and externally. Externally, the plan will be to open three other branches
of this business in places out of central such as San Fernando and Port-of-Spain,
Trinidad and another in Tobago. Internally, the plan will be to increase the number
of staff since the business will be expanding and also to make more profit.
12

14. Government Regulations
Government regulations include the registering of a business, taxation, proper
waste disposal etc. Firstly, this business will register with the registrar of
companies mainly so that the production process can commence. Secondly this
business will also be paying tax to the government since it is the most important
government regulation and the largest source of revenue for the government.
Lastly, this business will have proper disposal of waste so that the business and the
health of customers and residents nearby can have good level hygiene.
13

15. ETHICAL ISSUES
Ethical issues are problems or situations that require a person or organisations to
choose between alternatives that must be evaluated as right or wrong.
One ethical issue that this business will have to adhere to is showing respect to
workers and customers. If there is a lack of respect this will lead to a loss of
customers and also conflict amongst workers. Workers will have to communicate
with each other and customers in order to satisfy demands, this will therefore boost
the reputation of the business thus increasing the volume of sales.
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16. BIBLIOGRAPHY
https://cxc.org/SiteAssets/syllabusses/CSEC/CSEC%20
Principles%20of%20Business.pdf
https://www.google.tt/search?dcr=0&biw=1242&bih=6
02&ei=vGyXWpKOOaGMggfsxIeAAQ&q=pob+cxc+syllab
us+2018&oq=pob+cx&gs_l=psy-ab.3.1.0l11.286.5598.0.
8159.25.12.0.0.0.0.158.854.0j6.7.0....0...1.1.64.psy-ab..18
.7.1150.6..0i67k1j35i39k1j0i131k1j0i131i67k1j0i20i26
3k1.300.gNq9eO-UwI8
https://www.quora.com/What-are-the-types-of-linkage
s-in-C-programming
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