Business Enterprise Skills Paper 1 November 2024

Answer this when you sit the paper.

1. Awhere advertising is cheapest
2. Bnear its source of raw materials
3. Cnear its final consumers
4. Din the centre of the largest city

1. Atransport costs at the site have fallen
2. Bits workers are already trained locally
3. Cits landlord offers it a longer lease
4. Drent at its present site rises sharply

1. Amarket leadership
2. Bprofit maximisation
3. Coverseas expansion
4. Dsurvival

1. Apaying no interest on its capital
2. Ba strain on cash flow from repayments
3. Closing its limited liability status
4. Dan automatic fall in its market share

Answer this when you sit the paper.

1. Athe data needed is costly to collect
2. Bbuyers in one area still differ widely
3. Cit cannot be used by a small enterprise
4. Dit ignores where the customers live

1. Abehavioural segmentation
2. Bgeographic segmentation
3. Cdemographic segmentation
4. Dpsychographic segmentation

1. Agrows out of friendships between workers
2. Bhas leaders chosen by their workmates
3. Cpasses its messages by the grapevine
4. Dis created by management with set rules

1. Ais set out on the organisation chart
2. Bappoints its leaders by promotion
3. Cissues written job descriptions to all
4. Dgrows from the social needs of staff

Answer this when you sit the paper.

1. Athe cost of fitting a tail lift
2. Bthe purchase price of the van
3. Cthe legal fees of the purchase
4. Dthe annual insurance premium

1. Aunderstate profit for the year
2. Bleave profit exactly the same
3. Coverstate profit for the year
4. Dreduce the value of fixed assets

1. Akeeps every dollar of its profit
2. Bcan change the product as it likes
3. Cstarts with a known brand name
4. Dneeds no capital of its own at all

1. Atoo little capital and security
2. Bthe absence of any competitors
3. Ctoo many customers to serve
4. Da fall in the price of its inputs

1. Aeconomies of scale
2. Bbulk buying discounts
3. Cdiseconomies of scale
4. Ddivision of labour

1. Aspend heavily on introductory advertising
2. Bprepare a replacement for launch
3. Craise the price to its highest level yet
4. Dbuild extra plant to meet rising demand

1. Aemploys more staff than its rivals
2. Bsells to more than one market
3. Cruns out of cash to pay its debts
4. Dholds too little stock in reserve

1. Aexchange rate risk
2. Boperational risk
3. Cpolitical risk
4. Dreputational risk

1. Aa rise in the rate of company tax
2. Ba change in customer tastes
3. Cthe theft of cash by an employee
4. Da fire in the finished goods store

1. Amoney put aside to buy a new asset
2. Bthe repair bill on an asset for the year
3. Ca spreading of an asset's cost over its life
4. Dthe amount an old asset would fetch if sold today

1. Ano money leaves the firm when it is charged
2. Bit is added back to the asset's cost
3. Cit is charged only in the final year
4. Dit appears only in the cash budget for the year

Answer this when you sit the paper.

1. Athe purchase price and the legal costs of buying it
2. Bthe purchase price and the yearly insurance premium
3. Cthe purchase price less the yearly running costs
4. Dthe yearly insurance premium and the fuel bought

1. Ais the same amount every year
2. Bis charged only in the year of purchase
3. Cfalls each year as the book value falls
4. Drises each year until the asset is sold

Answer this when you sit the paper.

1. Aa variable cost
2. Ba sunk cost
3. Ca fixed cost
4. Da semi-variable cost

1. Afalls
2. Bfalls to zero
3. Cstays the same
4. Drises

1. Athe tomatoes used in production
2. Bthe labels stuck on each bottle
3. Cthe bottles the sauce is packed in
4. Dthe rent of the factory premises

1. Amore capital for the business
2. Bsole control of every decision
3. Cthe right to limited liability
4. Dfreedom from paying any tax

1. Adecisions can be made much faster
2. Bno partner is liable for the debts
3. Cprofits do not have to be shared
4. Deach partner works to a strength

1. Athe credit terms offered to customers
2. Bthe layout of a factory production line
3. Cthe wages paid to production workers
4. Dthe mix of products a firm sells

1. Aa fall in one product is cushioned
2. Bevery product will sell at the same rate
3. Cits total costs must always be lower
4. Dit no longer needs to do any research

1. Aa question mark
2. Ba cash cow
3. Ca dog
4. Da star

Answer this when you sit the paper.

1. Amay lose personal property too
2. Bpasses the debt to the customers
3. Closes only the money put into it
4. Dis protected by limited liability

1. Athe need for extra income
2. Bthe ease of running a business
3. Ca wish to avoid paying income tax
4. Dhaving too much spare capital

1. Aa reason to give up the idea
2. Ba need to raise her own prices
3. Ca gap in the market to fill
4. Da shortage of raw materials

1. Alosing a job without warning
2. Bthe wish to be one's own boss
3. Ca salary that no longer stretches
4. Dbeing unable to find employment

1. Ainterest is paid but the amount is unlimited
2. Ba business plan must be shown to a lender
3. Cno interest is due, but the sum is small
4. Dthe owner must give up part of her control

1. Ahire purchase
2. Btrade credit
3. Ca bank overdraft
4. Da mortgage

1. Apays for the equipment in one lump sum
2. Buses the machine while paying for it
3. Cnever has to pay more than the cash price
4. Downs the equipment before any payment

1. Aa listing on the stock exchange
2. Ba microfinance institution
3. Cthe sale of shares to the public
4. Da debenture issue to investors

1. Ahas more capital than it can employ
2. Bhas less capital than it needs
3. Chas borrowed from too many lenders
4. Dhas spent all its capital on wages

1. Aforcing it to employ more staff
2. Braising the rent it has to pay
3. Cincreasing its tax bill sharply
4. Dcapping its output and storage

1. Aemploys members of the family
2. Bsells to more than one market
3. Chas been trading for many years
4. Dhas prepared no business plan

1. Alets results be judged against plans
2. Bguarantees the profit the owner expects
3. Creplaces the need to keep any records
4. Dremoves the risk of business failure

1. Amust never be altered once written
2. Bcannot be shown to a lender at all
3. Crests on forecasts that can fail
4. Dis only of use to a large company