Business Enterprise Skills Paper 2 November 2019

1. Athe bank owns the premises of every outlet
2. Bthe franchisee funds and runs the outlet
3. Cthe government pays a grant for each branch
4. Deach outlet is built out of past royalties

Answer this when you sit the paper.

1. Athe franchisor guarantees a minimum profit
2. Bcompetition law bars rivals from the town
3. Cno capital at all is needed to open the outlet
4. Dthe brand and the product have already been proven

1. Atraining and central advertising
2. Bexemption from paying any income tax
3. Ca share of the franchisor's own profits
4. Dfreedom to change the product recipe

1. Athe accounting rules used in reporting
2. Bthe profit target set by the shareholders
3. Cthe laws that a company is obliged to obey
4. Dmoral principles guiding right conduct

1. Arecruit only the relatives of directors
2. Bemploy children because they cost less
3. Cpay fair wages and keep the workplace safe
4. Dset each wage by the manager's preference

1. Aan immediate fall in customer loyalty
2. Bwithdrawal of its licence by the local council
3. Chigher wage and pollution control costs
4. Da rise in the fines imposed on it

1. Aexemption from paying any corporate tax
2. Ba reputation that keeps customers loyal
3. Cimmediate savings on production costs
4. Da lower wage bill across all departments

1. Asells its output at too high a price
2. Bemploys too many skilled workers
3. Cis registered with the tax authority
4. Dhas no collateral to secure the loan

Answer this when you sit the paper.

1. Aincreases the interest rate on its overdraft
2. Bforces production onto costly generator fuel
3. Craises the price of the raw materials it buys
4. Dobliges it to employ more sales staff

1. Abuys a shareholding in the enterprise
2. Bsets a legal ceiling on all interest rates
3. Cpromises to repay the bank if the firm fails
4. Dpays the interest on the loan in full

1. Aremoving the need to keep any records
2. Brefunding all the tax paid in year one
3. Cexempting the owner from income tax for life
4. Dsimplifying registration and assessment

1. Areducing the wages they must pay staff
2. Bremoving the need to register for tax
3. Csupplying them with free raw materials from the state
4. Dgiving them a guaranteed market for output

1. Ainterest rates rise across the whole economy
2. Bborrowers reject cheap credit on principle
3. Cpoorly run firms simply build up bad debt
4. Dthe loans are usually repaid too quickly

1. Aoffering affordable premises and shared facilities
2. Bremoving competition from larger firms
3. Cguaranteeing that everything they make will sell
4. Dpaying the salaries of their employees

Answer this when you sit the paper.

1. Arecord the cash held in the bank today
2. Bshow the profit or loss made over a period
3. Cvalue the shares held by each shareholder
4. Dlist the assets owned on a single date

1. Awhether it can service and repay the loan
2. Bthe quality of its advertising campaigns
3. Cthe personal tastes of its shareholders
4. Dhow many employees it plans to recruit

1. Athe advertising agency
2. Bthe tax authority
3. Cthe raw material supplier
4. Dthe trade union

1. Acurrent assets divided by current liabilities
2. Bcost of sales divided by average stock
3. Cgross profit divided by sales, times 100
4. Dnet profit divided by capital employed

1. Abe making a loss on every sale it makes
2. Bhave borrowed too little long term capital
3. Cbe unable to pay its short term debts as they fall due
4. Dbe paying too much tax on its profits

1. Ahow much interest the overdraft costs
2. Bhow long customers take to pay
3. Chow many days of wages are owed to staff
4. Dhow fast stock is sold and replaced

1. Aratios ignore the profit figure completely
2. Ba ratio can only be worked out for a listed company
3. Cthey may use different accounting policies
4. Da ratio always predicts next year's profit

1. Aa small segment with distinctive needs
2. Bany buyer prepared to pay the listed price
3. Cthe whole market with one standard product
4. Dcustomers who buy only on credit terms

1. Ahigh volumes and heavy promotion spending
2. Blow volumes and undifferentiated advertising
3. Chigh volumes and low unit profit margins
4. Dlow volumes and high unit profit margins

1. Ait must advertise on national television
2. Bit is barred by law from raising prices
3. Cit cannot charge a price above cost
4. Dits single small market may disappear

Answer this when you sit the paper.

1. Agovernment census publications
2. Ba focus group run by the enterprise
3. Ca street questionnaire of shoppers
4. Dtest marketing in one small town

1. Athe enterprise must collect it itself
2. Bit is always printed in full colour
3. Ccompetitors charge a fee to release it
4. Dit must be purchased from the government

1. Awas gathered by someone else for another purpose
2. Btakes several months to collect in the field
3. Ccan never be obtained free of charge
4. Dis confidential to the enterprise alone

1. Acannot be seen by any competitor firm
2. Banswer the enterprise's exact question first
3. Care always more accurate than field work
4. Dare cheap and quick to obtain

1. Aleads by written rules and procedures
2. Bconsults the team before every decision
3. Cdecides alone and issues instructions
4. Dleaves the team to set its own targets

1. Acreative work requires personal freedom
2. Bstaff are highly skilled specialists
3. Ca crisis demands an immediate decision
4. Dthe workforce must be consulted on change

1. Aresistance to change must be reduced
2. Bthe decision must be taken very quickly
3. Cseveral views would improve the decision
4. Demployees are skilled and experienced

1. Aa factory line with strict safety rules
2. Bself motivated specialist staff
3. Ca team with poor discipline and drift
4. Dnewly recruited unskilled workers

Answer this when you sit the paper.

1. Aan advertising agency writing campaigns
2. Ba bank where accuracy and rules matter
3. Ca design studio developing new products
4. Da market stall changing prices hourly

1. Athe best style depends on the circumstances faced
2. Bonly democratic leadership motivates staff
3. Cone style suits every circumstance
4. Dleaders are born and cannot be trained

1. Afrom paternalistic towards bureaucratic
2. Bfrom laissez faire towards autocratic
3. Cfrom directive towards consultative
4. Dfrom consultative towards autocratic

1. Aforecasting future labour requirements
2. Braising the wages of existing employees
3. Cadvertising every post in the newspapers
4. Ddismissing the least productive workers

1. Athe personal opinions of each manager
2. Bnumbers, skills, ages and qualifications
3. Cthe market price of the firm's shares
4. Dthe value of the machinery in the factory

Answer this when you sit the paper.

1. Aa wage bill larger than the budget
2. Blost output and overtime payments
3. Cidle workers standing at machines
4. Da surplus of skilled staff on the payroll

1. Athe output of one department against another
2. Bemployees, by their recent performance
3. Cwages paid by rival firms in the industry
4. Djobs, not the people doing them

1. Aranking employees by length of service
2. Bsetting the wage by union negotiation
3. Cscoring each job on weighted factors
4. Dpaying every employee by piece rate

1. Aguarantees that every employee works hard
2. Bgives a defensible basis for pay differentials
3. Craises the wages of every grade each year
4. Dremoves the need to pay any overtime

1. Acannot be applied to manual jobs at all
2. Bmeasures the personality of the worker
3. Cignores individual performance
4. Dremoves the need for job descriptions

1. Aselling shares in a rival to the public
2. Busing its own resources and retained profit
3. Cbuying a competitor in the same industry
4. Dmerging with a firm in another industry

1. Ahorizontal integration
2. Bconglomerate integration
3. Cbackward vertical integration
4. Dforward vertical integration

1. Aforward vertical integration
2. Ba joint venture
3. Chorizontal integration
4. Dbackward vertical integration

1. Athe removal of a direct competitor
2. Ba guaranteed outlet for its own products
3. Ccontrol over the supply of raw materials
4. Drisk spread across different industries

Answer this when you sit the paper.

1. Aeliminate a competitor from the market
2. Bspread risk across unrelated industries
3. Csecure a route to the final customer
4. Dsecure the supply and quality of inputs

1. Alose its brand name to a rival
2. Bbe broken up by the competition authority
3. Cpay too much for the firm it acquired
4. Drun short of working capital

1. Aa clash of cultures and overpayment
2. Bthe loss of the buyer's trading licence
3. Ca legal ban on acquiring another firm
4. Dthe automatic dismissal of all managers

1. Athe message is sent to every employee
2. Bthe sender writes the message down
3. Cthe message travels down the hierarchy
4. Dthe message is received and understood

1. Areaches everyone at exactly the same time
2. Bmust be written rather than spoken
3. Cis distorted as it passes down
4. Dcan only travel upwards to managers

1. Ainformation overload
2. Bphysical noise in the workplace
3. Ca language the receiver lacks
4. Dchoosing the wrong medium

Answer this when you sit the paper.

1. Athe important message is missed
2. Bmanagers refuse to send any messages
3. Cemployees cannot read or write at all
4. Dthe network equipment always fails

1. Apoor relationships and lack of trust
2. Btoo many messages arriving at once
3. Cthe use of unfamiliar technical jargon
4. Dtechnical failure of the equipment

1. Asend the message a second time
2. Bbuild feedback into the communication
3. Cuse longer and more detailed wording
4. Dput the message in writing only

1. Areach only the senior managers
2. Bare written rather than spoken
3. Cpass through fewer intermediate levels of management
4. Dare repeated on several channels at once

1. Aasking customers what they will pay
2. Badding a mark up to total unit cost
3. Csetting a low price to enter the market
4. Dmatching the price charged by rivals

1. Araise total revenue substantially
2. Bleave total revenue almost unchanged
3. Ccause a large fall in total revenue
4. Dhave no effect on quantity demanded

1. Aloss leader pricing
2. Bcompetitive pricing
3. Cprice skimming
4. Dpenetration pricing

1. Aclear old stock from the warehouse
2. Bwin market share quickly
3. Crecover research costs fast
4. Dsignal a premium brand image

Answer this when you sit the paper.

1. Ais set by the government's price control
2. Bcovers the full cost of the factory
3. Cexceeds the price charged to regular buyers
4. Dcovers variable cost and makes a contribution

1. Aa price taker
2. Ba loss leader
3. Ca monopolist
4. Da price maker

1. Ademand sets the floor and cost the ceiling
2. Bcost sets the floor, demand the ceiling
3. Cneither has any effect on the price set
4. Dboth of them set the same single price

1. Acutting design time and raising accuracy
2. Breducing the price charged by suppliers
3. Cguaranteeing that the product will sell
4. Dremoving the need to buy raw materials

1. Aremoving the need for any stock at all
2. Braising the price of every item sold
3. Cshowing what is selling in real time
4. Dtraining staff to serve customers well

1. Alengthening the production run per batch
2. Bremoving the need for any suppliers
3. Cincreasing the quantity of stock held
4. Dreducing the capital tied up in stock

Answer this when you sit the paper.

1. Athe loss of its right to trade on credit
2. Bthe capital cost of hardware, software and licences
3. Cthe requirement to employ more clerks
4. Da legal duty to advertise on the internet

1. Areplace hardware and software often
2. Bbuy all of its equipment second hand
3. Cstop using computers in production
4. Dkeep the same system for twenty years

1. Ahacking, viruses and theft of data
2. Bthe loss of its manual filing cabinets
3. Ca shortage of skilled sales assistants
4. Dan increase in the cost of stationery

1. Aadds cost without adding value
2. Bwins an immediate competitive advantage
3. Cavoids the need to train its employees
4. Ddoubles its output within a month