Business Enterprise Skills Paper 2 November 2021

1. Aability to inspire and reassure
2. Breluctance to speak to junior staff
3. Crefusal to explain any change made
4. Dunwillingness to take any decision

1. Ait removes the need to plan ahead
2. Bit guarantees that profits will rise
3. Cstaff know what is expected of them
4. Dit allows the leader to avoid appraisals

Answer this when you sit the paper.

1. Aautocratic leadership
2. Bdemocratic leadership
3. Claissez faire leadership
4. Dpaternalistic leadership

1. Atold exactly how each task must be done
2. Bleft to decide how the work is done
3. Cconsulted before every decision taken
4. Dpaid only when output targets are met

1. Ademocratic, so everyone is consulted
2. Blaissez faire, so staff decide freely
3. Cconsultative, so a committee agrees it
4. Dautocratic, so one person decides fast

1. Adecision making can become slow
2. Bthe leader loses all legal authority
3. Ctraining costs are removed entirely
4. Demployees are never told the objectives

1. Aa joint venture with a rival firm
2. Blicensing of its brand name
3. Cdirect exporting
4. Dindirect exporting through an agent

1. Afreedom from that country's own laws
2. Bfull ownership of all the profits
3. Cthe partner's knowledge of the market
4. Dno capital has to be committed at all

1. Agives the franchisor total daily control
2. Bneeds little capital from the franchisor
3. Cguarantees higher profit than exporting
4. Dremoves the need for any legal contract

Answer this when you sit the paper.

1. Athe enterprise earns no profit in that market
2. Bthe brand name has to be given away
3. Cthe firm loses control over its own output
4. Dcapital is exposed to political risk

1. Ato suit local tastes, language and laws
2. Bto raise the cost of production abroad
3. Cto avoid having to advertise the product
4. Dto make the product identical everywhere

1. Aescape paying tax on its own profits
2. Bavoid the tariffs charged on imports
3. Cremove the need to employ any workers
4. Dsell without meeting any local standards

1. Athe price it charges must be cut
2. Bits total cost of production falls
3. Cits average cost per unit falls
4. Dthe quality of the product improves

1. Aa purchasing economy of scale
2. Ba technical economy of scale
3. Can external economy of scale
4. Da financial economy of scale

1. Abuy its raw materials at a discount
2. Buse specialised machinery fully
3. Cborrow money at a lower interest rate
4. Dshare a trained labour pool with rivals

1. Aobtain its raw materials free of any charge
2. Bpay its workers far less than a small firm
3. Cavoid repaying the loans that it takes out
4. Draise finance more cheaply than a small firm

Answer this when you sit the paper.

1. Apoor communication and coordination
2. Bthe ability to use specialised machinery
3. Cthe discounts obtained on bulk purchases
4. Da fall in the price of raw materials bought

1. Aa managerial economy of scale
2. Ban internal economy of scale
3. Can external economy of scale
4. Da technical diseconomy of scale

1. Amust sell all its output on credit terms
2. Bcannot pay for imported raw materials
3. Ccannot register the business with the state
4. Dis forced to pay a higher rate of tax

1. Abanks are forbidden to lend it any money
2. Bthe demand for its product disappears
3. Ccosts and prices change unpredictably
4. Dit is no longer allowed to hold stock

1. Areducing the tax the enterprise must pay
2. Bcausing lost output and idle labour
3. Cremoving the need to hold any raw stock
4. Dlowering the wages that must be paid out

1. Aprevent the firm from exporting goods
2. Bmake borrowing for expansion costly
3. Cremove the need to prepare a cash budget
4. Dforce the firm to pay higher wages

1. Aincreases the supply of skilled labour
2. Bleaves a shortage of experienced staff
3. Creduces the cost of training programmes
4. Dremoves the need to advertise vacancies

1. Araising the price it is able to charge
2. Breducing the wages its workers demand
3. Cincreasing the volume of its own exports
4. Dundercutting its prices in the market

1. Aa legal constraint on the enterprise
2. Ban economic constraint on the enterprise
3. Ca social constraint on the enterprise
4. Da technological constraint on the firm

1. Athe total value of the assets it owns
2. Bthe amount of cash held at the bank
3. Ca list of the products it currently sells
4. Da specific target the enterprise aims to reach

Answer this when you sit the paper.

1. Amodified at the end of each month
2. Bmanaged by the owner personally
3. Cmeasurable
4. Dmonetary in every respect

1. Aremove all risk from its operations
2. Bguarantee that the firm will make a profit
3. Cgive every department one direction
4. Dmake a cash flow forecast unnecessary

1. Areduce the wages that have to be paid out
2. Bprovide a standard to compare results with
3. Cremove the need to keep financial records
4. Dprevent competitors from entering the market

1. Aare no longer supervised at all
2. Breceive a share of the company profit
3. Ccan set their own hours of attendance
4. Dknow what they are working towards

1. Aare made pointless by rapid change
2. Bprevent the enterprise from borrowing
3. Ccannot be written down in any form
4. Dmust always be set by the government

1. Abased on the hours the asset was used
2. Bthe same for every year of the asset's life
3. Crecalculated from the market value each year
4. Dlargest in the first year and then falls

1. Athe full cost of the asset in year one
2. Ba fixed sum on the original cost each year
3. Cnothing until the asset is finally sold
4. Da fixed percentage of the book value

1. A$9 000
2. B$10 000
3. C$11 000
4. D$12 000

Answer this when you sit the paper.

1. Acheap finance is always long term finance
2. Ba loan never has to be repaid in full
3. Cthe bank decides what the firm produces
4. Dinterest and fees reduce the profit earned

1. Ashare capital is only used for daily wages
2. Btrade credit is the cheapest source available
3. Ca long term asset needs long term finance
4. Dall assets should be bought with an overdraft

1. Adoes not dilute the owners' control
2. Bgives the bank a vote at the meeting
3. Ccarries no interest charge at all
4. Dnever has to be repaid to the lender

1. Aa very large sum rules out personal savings
2. Bsmall sums can only be raised by a flotation
3. Clarge sums are always raised by trade credit
4. Dthe sum needed does not affect the interest

1. Awho reports to whom in the enterprise
2. Bthe profit each product earns in a year
3. Cthe prices charged for each item sold
4. Dthe amount of cash held at the bank

Answer this when you sit the paper.

1. Areports to every head of department
2. Bhas defined duties and one superior
3. Cmay choose which manager to obey
4. Dis paid the same as everyone else

1. Astrictly by the region they work in
2. Bby the length of service they have given
3. Conly by the function that they perform
4. Dby function and by project at once

1. Aremoves the need for any project deadlines
2. Bensures every employee has only one boss
3. Cbrings different specialists into one team
4. Dreduces the total number of staff employed

1. Anever be given any work to do at all
2. Bbe unable to work with other departments
3. Chave no formal job description prepared
4. Dreceive conflicting demands from two bosses

1. Aconfined to a single small retail outlet
2. Bcarried out entirely by one person alone
3. Corganised as a series of distinct projects
4. Didentical and repeated every single day

1. Aprinting the packaging for the product
2. Bbuilding the factory that will make it
3. Claunching the product across the country
4. Dgenerating ideas for possible products

1. Arecruit the workers who will produce it
2. Bdrop ideas that do not fit the firm
3. Cadvertise the product to all customers
4. Dset the final selling price of the product

Answer this when you sit the paper.

1. Aeventually reach decline in their life cycle
2. Bcan never be advertised any further
3. Care always sold at a loss to customers
4. Dcannot be sold in more than one market

1. Areduces the capital the firm has to invest
2. Bremoves the need to research the market
3. Cdepends less on any single product
4. Dguarantees that every launch will succeed

1. Ais sold only to existing customers
2. Bis priced below the cost of making it
3. Coffers a feature rivals do not have
4. Dcopies a rival's product exactly

1. Aresearch and development is costly and risky
2. Bit is illegal without government permission
3. Cthe enterprise must close its old factories
4. Dno market research can be carried out on it

1. Athe share each product has of total sales
2. Bthe relationship between price and demand
3. Cthe trend in monthly sales over five years
4. Dthe exact value of every transaction made

1. Ahow sales have changed over time
2. Bthe qualifications held by each employee
3. Cthe proportion each region contributes
4. Da list of every customer's full address

1. Arecording the details of each invoice
2. Bshowing the parts of a single whole
3. Ccomparing quantities between categories
4. Dcalculating the depreciation on an asset

Answer this when you sit the paper.

1. Acolumns drawn against a vertical scale
2. Bslices cut from one complete circle
3. Ca single line joining plotted points
4. Dsymbols that each stand for a quantity

1. Aneeds no headings or units to be given
2. Bcan be understood without any numeracy
3. Cshows a trend more clearly than a graph
4. Dkeeps the exact values for the reader

1. Athe source of the figures is stated on it
2. Bthe data has been collected from a survey
3. Cthe chart is printed in a single colour
4. Dthe vertical scale does not start at zero

1. Ameans no supplier has to be paid at all
2. Bavoids lost sales when demand rises
3. Cguarantees that the goods never perish
4. Dremoves the cost of storing the goods

1. Aearns bulk discounts from suppliers
2. Bremoves the need for any storage space
3. Cavoids all risk of the stock being stolen
4. Dfrees the working capital tied up in stock

1. Abecomes free of any wastage or scrap
2. Bcan be sold before it has been made
3. Ccan continue without interruption
4. Dno longer needs any workers at all

Answer this when you sit the paper.

1. Aslow selling lines earn a higher margin
2. Bfast selling lines must be restocked more often
3. Cstock is ordered on the same day each month
4. Ddemand has no effect on the stock held

1. Ahold a higher level of stock
2. Bemploy more staff in the warehouse
3. Creduce the price it charges customers
4. Dstop ordering from that supplier

1. Aexempt from any form of sales taxation
2. Bsold only to a small number of buyers
3. Cvery cheap to buy from the wholesaler
4. Dperishable and deteriorate quickly

1. Aties up cash until it is finally sold
2. Bcannot be insured against theft or fire
3. Cis recorded as a liability in the accounts
4. Dmust be paid for only after it is sold