Business Studies Paper 1 June 2020

1. AAbility to delegate work to others
2. BAvoiding contact with employees
3. CReluctance to make any decision
4. DKeeping all information from staff

1. ASupervision costs rise as effort has to be forced
2. BOutput per worker rises and labour turnover falls
3. CRecruitment costs rise as staff leave more often
4. DAbsenteeism rises because workers feel secure

1. ARecruiting more skilled production workers
2. BShortening the chain of command
3. CReducing the rate of absenteeism
4. DIncreasing the firm's market share

1. AEvery tenth name on the list is taken in turn
2. BThe interviewer chooses who to ask within each category
3. CEvery member of the population has an equal chance
4. DOnly customers who volunteer to take part are included

1. AEvery member of the population is questioned in turn
2. BThe sample is selected by a random number generator
3. CInterviewers fill a fixed number from each category of people
4. DNames are drawn at random from a complete list of the population

1. AProduce goods using the minimum of resources and waste
2. BEmploy as many workers as the factory can hold
3. CProduce the largest possible quantity of every product line
4. DHold large buffer stocks so production is not halted

Answer this when you sit the paper.

1. AThe output at which revenue equals total cost
2. BThe profit earned at the current level of output
3. CThe amount sales can fall before a loss is made
4. DThe fixed costs the business must cover each month

1. AWhere the total revenue line crosses the total cost line
2. BWhere the fixed cost line meets the vertical axis
3. CWhere the total cost line meets the vertical axis
4. DWhere the total revenue line begins at the origin

1. AThe firm's employees and their trade union
2. BThe firm's own pricing policy
3. CThe firm's own production department
4. DTechnological change in the wider economy

1. ALocal manufacturers pay less for imported inputs
2. BExports rise because trading partners buy more
3. CInfant industries are protected from cheap imports
4. DConsumers enjoy a much wider choice of goods at lower prices

1. ADumping of underpriced foreign goods increases
2. BLocal employment in protected industries falls
3. CProtected firms become inefficient and prices rise
4. DGovernment loses all its revenue from customs duties

1. AIt removes the need to hold any staff meetings
2. BIt gives the business a written record of the news
3. CIt keeps the wording of the message under control
4. DIt reaches staff far faster than a formal channel

1. AA signed agreement from the workers concerned
2. BA permanent record of the decision taken
3. CAn assurance that every employee will accept the plan
4. DA reaction from the workforce it can still act on

1. AClosing stock is valued at the newest prices paid
2. BClosing stock is valued at the oldest, lowest prices
3. CClosing stock is valued at expected selling price
4. DClosing stock is left out of the final accounts altogether

1. AIt is the simplest method of pricing stock issues
2. BIt matches the physical flow of perishable goods
3. CIt is not accepted by international accounting standards
4. DIt raises the reported profit of a business during inflation

1. ABuying a new delivery vehicle for the business
2. BRepairing a delivery vehicle already owned
3. CPaying the wages of the delivery driver
4. DInsuring the delivery vehicle for the year

1. ACharged in full to the income statement of the period
2. BShown as a non-current asset and depreciated over time
3. CAdded to the cost of the building it relates to
4. DCarried forward and written off over five years

1. AIt makes every branch of the business the same size
2. BIt fixes the price the business should charge customers
3. CLarge volumes of data can be stored, retrieved and analysed
4. DIt removes the need for a manager to use any judgement at all

1. AAdministration costs rise because clerical work grows
2. BThe firm becomes exposed to hacking and data loss
3. CRoutine clerical work can no longer be automated
4. DCommunication between branches becomes slower

1. AManagers no longer need to plan what they will say
2. BEmployees no longer need any training to do their work
3. COne message reaches every site at the same instant
4. DThe business can stop keeping records of what it sends

1. AManagers receive so much feedback that they ignore it
2. BEmployees cannot ask questions, so rumours fill the gap
3. CThe message is repeated until employees stop listening
4. DEmployees receive too many replies to read them all

1. AManagers learn quickly whether an instruction was understood
2. BGrievances build up with no outlet and surface as disputes
3. CTrade unions lose any reason to represent the workforce
4. DEmployees feel consulted about decisions that affect them

Answer this when you sit the paper.

1. AEach worker's pay is negotiated separately each month
2. BThe firm can change wage rates without any notice
3. CWage costs fall below the level productivity justifies
4. DOne negotiation settles terms for the whole workforce

1. AThe workforce loses its recognised channel for consultation
2. BManagement spends less time negotiating with employees
3. CA strong union can force wages above productivity gains
4. DLabour costs become impossible to budget for at all

1. ACapital tied up in stock is released for other uses
2. BBulk purchase discounts on materials become larger
3. CDelivery costs per unit fall as orders get bigger
4. DThe firm can supply a sudden surge in demand from stock

1. ACapital is tied up in raw materials for much longer
2. BWarehousing and insurance costs rise sharply
3. CStock deteriorates while it waits to be used
4. DA late delivery stops production straight away

1. APrices signal what consumers want and resources follow
2. BProducers agree production quotas between themselves
3. COutput is shared equally between all the industries
4. DA government planning office sets targets for every industry

1. APublic goods such as street lighting are not provided
2. BConsumers are given too much choice of product
3. CFirms are forced to keep their costs and their prices down
4. DResources move too quickly to the goods in demand

1. AThe audited accounts of a competing business
2. BA cash flow forecast for the first year of trading
3. CA signed loan agreement from the firm's bank
4. DA record of the tax the firm paid over the last five years

1. AIt sets the interest rate the bank is allowed to charge
2. BIt transfers the risk of the venture to the entrepreneur
3. CIt shows whether trading can cover interest and repayments
4. DIt replaces the security the bank would otherwise ask a borrower for

1. AIt removes the need to keep any accounting records at all
2. BIt assures the owners the objectives will be achieved
3. CActual sales and costs are compared with the plan
4. DIt fixes the prices the business must charge

1. AThe area becomes less attractive to new residents
2. BIllnesses are treated earlier because care is close by
3. CPrivate hospitals in the district are forced to close
4. DHouseholds pay more for transport to reach any treatment

1. AGovernment spending on schools in the area rises too
2. BConstruction and staffing create jobs for local people
3. CLocal firms are taxed to pay for the building work
4. DLand values in the area fall, so housing gets cheaper

1. AIt sells a single product at one price to everyone
2. BIt concentrates all of its effort on one small segment
3. CIt offers one marketing mix to the whole market
4. DIt designs a separate marketing mix for each segment

1. AThe highest sales volume, so unit costs are lowest
2. BA guaranteed share of the market in future years
3. CFreedom from any competition in the market
4. DSuppliers charge it exactly the same price as every rival

1. ACatering is a necessity bought in the same amount at any income
2. BHigher incomes push customers towards the cheapest caterers
3. CCatering prices fall automatically whenever incomes rise
4. DCatering is a luxury, so more functions are held as incomes rise

1. AIts refusal to hire any part time staff at peak times
2. BIts reputation for quality and its promotion on social media
3. CIts policy of charging the lowest prices in the industry
4. DIts decision to serve only one class of customer

Answer this when you sit the paper.

1. AIt adjusts the price by itself for the season and demand
2. BIt is simple to work out and every job covers its costs
3. CIt sets the price at the level the strongest rival charges
4. DIt measures what each class of customer is willing to pay

1. AThe price is set from cost and ignores what rivals charge
2. BThe price is quoted too slowly for customers to wait
3. CThe price is set below the cost of providing the service
4. DThe mark up changes from one customer to the next

1. AAs a way of matching the cheapest rival in the market
2. BAs a substitute for knowing what the product costs
3. CAs the only figure any quotation should be based on
4. DAs a floor below which no quotation should be given

Answer this when you sit the paper.

1. AThe wage bill is fixed, so it is easy to budget for
2. BWorkers are paid the same amount in every month
3. CThe firm pays for the hours it does not use as well
4. DThe wage bill moves with the level of bookings taken

1. AIt pays workers for output they have not yet produced
2. BThe slow and the quick earn the same, so effort is not rewarded
3. CIt is complicated to calculate and needs a payroll department
4. DIt pushes workers to rush, and the quality of work falls

1. APay time rates and add a bonus tied to functions completed
2. BPay a piece rate for every plate a worker serves
3. CCut the basic rate until output per worker rises
4. DPay the same monthly salary whatever the workload