Business Enterprise Skills Paper 2 November 2020

1. Areduces the number of firms competing
2. Bcreates employment and raises national output
3. Cincreases the amount the government itself spends
4. Draises the general level of import duty

1. Apay income tax, value added tax and company tax
2. Bare exempt from every tax throughout their existence
3. Cemploy only casual unregistered labour
4. Dreceive subsidies from the treasury

1. Areduces the country's total output
2. Braises the price of all imported goods
3. Cremoves the need for foreign currency
4. Dadds value inside the country

Answer this when you sit the paper.

1. Araising the cost of urban housing
2. Bslowing rural to urban migration
3. Cincreasing the demand for imports
4. Dreducing the output of the farms

1. Aenterprises never create any employment
2. Bmany small enterprises fail within a few years
3. Ccompetition among firms always raises prices
4. Dnew firms cannot be taxed at all

1. Aescape tax and regulation
2. Bpay higher wages than formal firms
3. Cexport most of their production
4. Demploy only skilled graduates

1. Athe size of the informal sector alone
2. Ba complete ban on imported competition
3. Cthe number of public holidays declared during the year
4. Da stable policy framework and working infrastructure

Answer this when you sit the paper.

1. Areduce the size of its global brand
2. Bcut its labour, material or tax costs
3. Craise the wages it pays its workers
4. Davoid selling in that country's market

1. Aa downturn in one market is offset elsewhere
2. Bexchange rates are fixed by agreement
3. Cit sells the same product everywhere
4. Dit pays no tax in any host country

1. Aits shareholders from paying tax
2. Bits workers from foreign competition
3. Cits licence to operate there
4. Dits exchange rate against the dollar

1. Aprotection from all foreign competitors
2. Bcheaper imported inputs and equipment
3. Ca fixed world price for its products
4. Dan exemption from quality standards

1. Aeasier access to foreign technology
2. Ba wider choice of raw material suppliers
3. Ca fall in the cost of transport
4. Dcompetition from cheap imported goods

1. Ait must pay its workers in foreign currency
2. Ba shock abroad can halt local production
3. Clocal suppliers will raise their prices
4. Dits exports become automatically cheaper

1. Ameet international quality and labour standards
2. Bbuy all of its raw materials from a single supplier
3. Csell only within its own country
4. Demploy fewer skilled staff each year

Answer this when you sit the paper.

1. Aits currency becomes freely convertible
2. Bit is protected from all competition
3. Cits production costs are subsidised
4. Dtariffs on its goods sold to members fall

1. Aavoid paying tax in its own country
2. Bgain economies of scale
3. Cstop competing on quality altogether
4. Draise its unit costs of production

1. Afixing the price of all local goods
2. Btaxing imports from non member countries
3. Csubsidising the wages of local workers
4. Dbanning trade between the members

1. Astronger competition from member states
2. Bthe loss of access to a larger market
3. Chigher tariffs on its own exports
4. Da ban on employing foreign workers

1. Athe merger of two private companies
2. Bthe closing down of an unprofitable state enterprise
3. Cthe state buying up private companies
4. Dthe sale of state enterprises to private owners

1. Aalways charge lower prices than the state
2. Bemploy more workers than the state did
3. Chave a profit incentive to cut waste
4. Dare prevented by law from making a loss

1. Arival competitors are allowed into the market freely
2. Ba state monopoly simply becomes a private one
3. Cthe sale price paid is very high
4. Da regulator is appointed to oversee it

1. Aguarantees that the venture will succeed
2. Bremoves the need to register the business
3. Ctests the idea before any money is committed
4. Dfixes the price customers will pay for clothes

1. Afinancial forecasts
2. Bdescription of the office furniture
3. Chistory of the owners' families
4. Dlist of the proposed staff uniforms

1. Areduce disputes between the partners
2. Bremove the need for a partnership deed
3. Cguarantee an equal share of the profits
4. Dlimit the liability of each partner

Answer this when you sit the paper.

1. Athe market value of the premises
2. Bhow many competitors are in the town
3. Chow much profit was made last year
4. Dwhen the business will run short of cash

1. Apublished each year in the national newspapers
2. Bused to set the partners' income tax
3. Chidden from the bank manager
4. Dcompared against the forecast and acted on

1. Ait must be written by an accountant
2. Bit is not permitted for a partnership
3. Cits assumptions may prove to be wrong
4. Dit cannot be shown to a lender

1. Acompetition from imported second hand clothing
2. Bthe impossibility of buying any fabric
3. Ca legal ban on selling men's clothing
4. Dthe total absence of any demand for men's clothing

1. Athe price of the firm's raw materials
2. Bjob security and the ability to pay wages
3. Cthe personal wealth of the directors
4. Dthe amount of tax paid by customers

1. Awhether the firm advertises widely
2. Bhow well its staff are motivated
3. Cwhether its products are well designed
4. Dwhether the firm can pay its bills

1. Areceive it in full and on time
2. Bare not interested in profit at all
3. Creceive it months after the year end
4. Dmay read only the summarised accounts

Answer this when you sit the paper.

1. Asupply the firm with raw materials
2. Bjoin the firm as an employee
3. Chold or sell the shares
4. Dgrant the firm a long term bank loan

1. Acannot be audited by an accountant
2. Bpredicts the profit of the next year
3. Cis always inaccurate and misleading
4. Ddescribes what has already happened

1. Ause different accounting policies
2. Btrade in the very same industry
3. Cemploy the same number of workers
4. Dpublish their accounts on the same date

1. Ais never seen by the firm's own managers
2. Bignores staff morale and brand strength
3. Cis illegal to show to an outside lender
4. Dmeasures everything except the profit

1. Areceived evenly through every month
2. Bpaid in advance by the buyers
3. Cfixed by the government each year
4. Dreceived only after the harvest is sold

1. Awithout any interest being charged
2. Bonly after the harvest has been sold
3. Cin good time and on better terms
4. Donly if the farm already makes a profit

1. Akeeps its accounts on a computer
2. Bemploys too few casual workers at harvest time
3. Csells its crop at too high a price
4. Druns out of cash to pay wages and suppliers

Answer this when you sit the paper.

1. Araises the interest paid on loans
2. Breduces the profit margin on the sale
3. Cincreases the debtors' balance owed
4. Dlengthens the credit period given

1. Alosing the right to sell on credit
2. Ba fee charged by the factor
3. Can increase in the stock held
4. Da higher rate of tax on profits

1. Ameans the firm cannot use the equipment
2. Brequires a large deposit at the outset
3. Ccosts more in total over the period
4. Dis forbidden to small enterprises

1. Adelay paying its suppliers indefinitely
2. Bborrow more from the bank each year
3. Ctighten credit control and stock levels
4. Dsell off the enterprise's fixed assets

1. Aplanning
2. Bstaffing
3. Corganising
4. Dcontrolling

1. Aorganising
2. Bdirecting
3. Ccontrolling
4. Dcoordinating

1. Astaffing
2. Bdirecting
3. Cplanning
4. Dcontrolling

Answer this when you sit the paper.

1. Arises with what each of them sells
2. Bfalls if the firm makes an overall loss
3. Cis fixed whatever they manage to sell
4. Dis set by the trade union each year

1. Araising the basic wage each month
2. Badding more tasks at the same level of difficulty
3. Cadding responsibility and a whole task
4. Dmoving the worker between jobs

1. Ashare ownership schemes open to all of the staff
2. Blarge annual profit sharing bonuses
3. Cpraise, responsibility and recognition
4. Dmedical aid and housing allowances

1. Ais the strongest motivator in every workplace
2. Bstops dissatisfaction rather than motivating
3. Cmatters only to the senior managers
4. Dhas no effect on employees at all

1. Ais carried out only by the sales force
2. Btakes place after the product is made
3. Cis concerned only with advertising costs
4. Dstarts from what customers want

1. Ais fixed by the government each year
2. Bis the lowest in the whole market
3. Cattracts customers and still covers cost
4. Dmatches the cost of the raw materials used

1. Athe stages of the product life cycle
2. Bthe regions in which a firm trades
3. Cgroups of buyers with similar needs
4. Dthe products a firm currently makes

Answer this when you sit the paper.

1. Ahealth consciousness
2. Bfamily size
3. Cusage occasion
4. Dgeographic region

1. Aincome level
2. Busage occasion
3. Cage group
4. Dgeographic region

1. Aloses some of its economies of scale
2. Bcannot advertise any of its products
3. Cmust charge one price everywhere
4. Dis barred from exporting its drinks

1. Atake sales from one another
2. Bbe sold at exactly the same price
3. Cbe banned by the standards authority
4. Drequire a single production line

1. Aexempt from health and safety rules
2. Bsold only to industrial customers
3. Ca repeat purchase with many substitutes
4. Dbought once in a customer's lifetime

1. Athe price paid for its raw materials
2. Bthe wages paid to machine operators
3. Cwaste, rework and customer returns
4. Dthe rent charged on the factory

1. Atrains every worker in advance
2. Bvets suppliers before purchase
3. Cinspects the finished product
4. Dchecks the design before production

1. Ais carried out by outside auditors after delivery
2. Bbuilds checks into every stage of production
3. Capplies only to imported materials
4. Dinspects only the finished goods

Answer this when you sit the paper.

1. Aimporting machinery from abroad
2. Busing the knowledge of the workers themselves
3. Creplacing managers with outside consultants
4. Dinspecting every bar of soap produced

1. Acutting the price it pays for its raw materials
2. Bguaranteeing an exemption from tax
3. Cremoving the need to control quality
4. Dgiving credibility with retailers and buyers

1. Ais not permitted without certification
2. Bremoves the customer from the process
3. Cneeds a long change in the firm's culture
4. Drequires new machinery immediately

1. Athe shortest route through the network
2. Bthe chain of activities that carries the greatest float
3. Cthe longest chain of activities through the network
4. Dthe sequence with the lowest total cost

Answer this when you sit the paper.

1. Athe lowest cost
2. Bthe greatest float
3. Cthe shortest duration
4. Dzero float

1. Ashows the shortest possible project duration
2. Brecords the wages paid to each worker
3. Cmeasures the quality of the finished work done
4. Dfixes the price charged to the client

1. Astored on site for the whole project
2. Bbought in bulk at the very start of the whole project
3. Cscheduled to arrive when each activity needs them
4. Dordered only after the work has begun

1. Aadding resources to shorten its duration
2. Bcancelling it from the project entirely
3. Cdelaying it until resources are free
4. Dmoving it off the critical path

1. Ameasured only after the project ends
2. Bidentical for every kind of activity
3. Cfixed by law for each type of trade
4. Destimates that may turn out to be wrong

1. Ainstalling a new production line
2. Borganising a large trade fair
3. Cbuilding a factory extension
4. Dresearch and creative work