Business Studies Paper 1 November 2019

1. AOffering subsidies such as low-cost loans and tax holidays.
2. BIncreasing tariffs on imports of raw materials used by small firms.
3. CRemoving small firms' access to market research information.
4. DRequiring small firms to meet higher minimum capital requirements.

1. AOpening new branches in additional locations.
2. BIncreasing output at existing sites.
3. CA merger with another firm.
4. DPenetrating new markets with existing products.

Answer this when you sit the paper.

1. AIncreased tariffs on goods imported from member states.
2. BReduced access to a variety of goods and services.
3. CRestrictions on the free movement of goods between member states.
4. DReduced tariffs between member states, which increases trade.

Answer this when you sit the paper.

1. AA fall in transport costs at the firm's proposed new location.
2. BLower rent payable at the firm's proposed new location.
3. CHigher expected sales revenue at the firm's proposed new location.
4. DNegative attitude towards the firm shown by the local community.

1. AThe firm's choice of delayering strategy.
2. BThe firm's method of recruiting new staff.
3. CThe level of demand for the product.
4. DThe design of the firm's organisational chart.

1. AMass-producing goods to benefit from economies of scale.
2. BTargeting a small segment of a larger market with a product suited to that segment.
3. CUsing a broad, shotgun approach to reach as many customers as possible.
4. DSelling a standard product to the whole market without targeting a particular group.

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AIt is raised by issuing debentures, a form of borrowing from lenders.
2. BIt is raised from the owners and does not have to be repaid.
3. CIt earns interest and must be repaid to the lender by an agreed date.
4. DIt increases the firm's gearing ratio because it is borrowed capital.

1. AA cash bonus paid to all employees each year at Christmas time.
2. BJob enrichment, giving employees more varied and challenging tasks.
3. CAn annual bonus paid in cash, based on the firm's overall profit for the year.
4. DA performance-related pay increase tied to individual output targets.

Answer this when you sit the paper.

Answer this when you sit the paper.

Answer this when you sit the paper.

Tap to enlarge

Answer this when you sit the paper.

Tap to enlarge

Answer this when you sit the paper.

1. AIt costs less than external recruitment because the post need not be advertised widely
2. BIt brings fresh ideas and working practices into the business from other industries
3. CIt removes the need to give the successful applicant a new contract of employment
4. DIt widens the pool of applicants the selection panel is able to choose from

1. AIt can stifle innovation because no new ideas enter the business from outside
2. BIt lengthens induction training because internal applicants do not know the business
3. CIt raises recruitment agency fees because agencies charge more for internal moves
4. DIt obliges the business to advertise each post in the national press before filling it

Answer this when you sit the paper.

1. AIt reduces opportunities for delegation to junior staff.
2. BIt raises the organisation's administrative costs.
3. CIt increases the number of layers in the management hierarchy.
4. DIt shortens the chain of command, improving communication.

1. AThe informal channels through which rumour passes between one department and another
2. BThe profit that each department contributed during the last financial year
3. CThe chain of command, showing who is accountable to whom throughout the business
4. DThe amount of authority each manager has actually delegated to their subordinates

1. AIt stops managers from finding out the size of their own span of control
2. BIt raises the cost of recruiting new staff into the reorganised departments
3. CIt becomes out of date as people leave and departments are reorganised
4. DIt hides which employees belong to which department within the business

Answer this when you sit the paper.

1. AIt helps clarify official messages sent through formal channels.
2. BIt might spread false information among staff.
3. CIt helps create feelings of belonging and social cohesion.
4. DIt can be used by management to test new ideas informally.

1. AThe sender is relieved of the task of choosing a suitable medium for the message
2. BFeedback confirms that the message has been understood as the sender intended
3. CA written record of every message is produced automatically for the business files
4. DThe message reaches every employee at exactly the same moment of the working day

1. AIt slows decisions down because replies have to be gathered before acting
2. BIt reduces the amount of feedback that reaches managers from their subordinates
3. CIt raises the cost of the telephone and internet lines the business rents monthly
4. DIt removes the chain of command from the organisational structure of the business

1. APurchasing non-current assets such as buildings and machinery.
2. BPaying dividends to shareholders as a return on long-term investment.
3. CRepaying the principal on a long-term bank loan.
4. DPaying wages and day-to-day bills such as rent.

1. AThey set spending limits against which actual expenditure can be measured
2. BThey fix the selling price the business must charge for each of its products
3. CThey provide the business with an accurate forecast of its competitors' costs
4. DThey remove the need for the business to record what each department spends

1. ABudgets make it harder for a department to find out how much it is allowed to spend
2. BBudgets prevent a business from comparing its performance across successive years
3. CBudgets increase the amount of cash a business is required to hold at its bank
4. DBudgets can encourage rigidity when managers work to figures set before conditions changed

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AA memo or letter.
2. BA face-to-face conversation.
3. CA telephone call.
4. DA video call.

1. AIt can be filed and used as evidence at a later date.
2. BIt provides a permanent record that can be referred to later.
3. CIt allows immediate feedback from the receiver.
4. DIt is well structured, reducing the risk of misunderstanding.

1. AIncreased local employment opportunities created by the new plant.
2. BImproved local infrastructure funded and maintained by the firm.
3. CIncreased dust and air pollution from the manufacturing process.
4. DIncreased tax revenue collected for local community services.

1. AShareholders have limited liability for the firm's debts.
2. BShareholders are personally liable for all the firm's debts.
3. CThe business cannot own land or property in its own name.
4. DThe business cannot sue or be sued in its own name.

1. AThe firm's fixed costs fall because computerised machinery need not be insured
2. BBricks are made to a more consistent quality because machines repeat the same settings
3. CThe firm stops needing to buy clay because the machines shape bricks from waste
4. DDemand for the firm's bricks rises by itself once the machinery has been installed

1. AThe firm has to employ more full time workers to operate each computerised machine
2. BThe firm loses the ability to change from one type of brick to another type
3. CBricks made by computer controlled machines vary more in size than hand made ones
4. DProduction stops during a power cut because the computerised line needs electricity

1. AOutput per worker is unchanged because machines run at the operator's own pace
2. BOutput per worker rises and fewer workers are needed, so the wage bill falls
3. CEvery worker must be paid a higher basic wage to be allowed to run the machinery
4. DEach machine needs its own team of operators, so both staff and wages increase

1. AA licence fee is owed to the local council for every computerised machine installed
2. BThe cost of clay in each brick rises sharply once machines replace hand moulding
3. CProduction runs have to be lengthened to justify the computerised equipment used
4. DInstallation and maintenance have to be paid for before any extra bricks are sold

Answer this when you sit the paper.

1. ATrade credit from suppliers, which is normally settled within thirty to ninety days
2. BDebt factoring, which turns the firm's unpaid customer invoices into immediate cash
3. CDebentures, on which the firm pays fixed interest and repays the sum at a set date
4. DA bank overdraft, which the bank can call in at short notice whenever it chooses

1. AIt becomes a part owner of the leasing company that supplies the machinery
2. BIt becomes the owner of the machinery as soon as the first payment has been made
3. CIt can use up to date machinery without paying the full purchase price at the start
4. DIt receives a lump sum of cash that it can spend on any part of the business

1. AThe new shareholders own part of the company permanently and dilute existing control
2. BThe money raised from the shareholders has to be repaid within five years of issue
3. CThe company has to pay shareholders a fixed rate of interest whatever its profit
4. DThe company's existing bank loans are cancelled as soon as the new shares are issued

1. AIt entitles the bank to a share of the company's profits in each trading year
2. BIt is repaid in instalments over several years and usually needs security
3. CIt carries no interest while the borrowed funds remain unspent by the company
4. DIt has to be repaid in full within twelve months of the date it is taken out

Answer this when you sit the paper.