cameroon gce advanced level 2025 building commerce and finance 3
cameroon gce advanced level 2025 building commerce and finance 3
1. BUSINESS PERFORMANCE
A group of young men were considering the best type of business organisation to operate. The founders, seven in number were evaluating three types of businesses to possibly undertake. One unincorporated (partnership) and two incorporated (private and public company). Finally, the founders decided that the company will be a public limited company and their proposed authorised capital to be CFAF 200,000,000 at CFAF 10,000 a share. They decided that, each of them should buy 1,000 shares and the rest to be issued to the general public.
Required:
a. Define the three business options and explain their liability coverage. (6 marks)
b. Explain four methods in which other shares can be issued in public. (8 marks)
c. Determine the issued and unissued capital. (5 marks)
d. State five documents that are needed when creating a business in Cameroon. (6 marks)
2. INTERNATIONAL TRADE
AJT Corporation, is a construction company based in Buea, Cameroon that specializes in high-tech drilling components. The company is looking to expand its operations internationally by exporting its products to Chad and some other countries in Africa and importing raw materials from Southeast Asia. However, the management team is aware of various challenges associated with international trade, including trade barriers regulations, and payments issues. Assuming AJT has contributed enormously in GDP of Cameroon and hypothetical values of Cameroon trading with other countries over a specific period shows all in CFAF.
- Exports of Goods and Services: 300 billion
- Imports of Goods and Services: 250 billion
- Income Received: 100 billion
- Income Paid: 80 billion
- Unilateral Transfers Received: 10 billion
- Unilateral Transfers Paid: 5 billion
- Non-Financial Assets: 2 billion
- Net Foreign Direct Investment (FDI): 20 billion (inflows)
- Net Portfolio Investment: 15 billion (out flows)
- Other Investments: 10 billion (inflows)
- Reserve Assets: 5 billion (increase in reserves)
Required:
a. Discuss three primary reasons why AJT PLC Corporation is seeking to expand its operation internationally. (5 marks)
b. Explain three benefits AJT hope to achieve by entering other African markets and sourcing materials from Southeast Asia. (4 marks)
c. i. Identify and analyse three key barriers that AJT PLC might face when entering the Chadian market. (4 marks)
c. ii. State and explain three suitable market entry strategies for AJT PLC to effectively penetrate the African markets. (5 marks)
d. i. Determine the Balance of Payment of Cameroon’s Current and Capital Account. (4 marks)
d. ii. Examine two ways how AJT PLC Corporation international operations could influence the balance of trade of Cameroon. (3 marks)
