Business Studies Paper 1 November 2020

1. ABuy a second machine to add to the production line
2. BTake on subcontract work to fill the spare capacity
3. CCut the quantity the factory produces each week
4. DRaise the selling price of the goods it produces

1. ATwo hundred brown loaves baked in a single run
2. BCans of soft drink filled on a moving line
3. CBricks turned out to one standard size all day
4. DA wedding cake made to a customer's own design

1. ANo economies of scale can be gained from the output
2. BEvery unit has to be made to a different specification
3. CMachines stand idle while they are reset between batches
4. DOnly one item can be made at a time to a customer's order

1. AUse plain words and avoid jargon and technical terms
2. BSend a much longer message so nothing is left out
3. CUse technical terms so that the message is precise
4. DSend the message down through as many levels as possible

1. AThe sender no longer has to choose a suitable medium
2. BThe message reaches more people than it did before
3. CThe receiver is stopped from asking any questions
4. DMisunderstanding is detected as soon as it happens

1. AIt costs the business nothing to place in a daily paper
2. BIt cannot be ignored by anyone who buys the paper
3. CIt reaches every household in the country at once
4. DIt stays on the page, so it can be kept and read again

1. AIt ensures that the readers will visit the shop
2. BIt is the only medium that can carry a photograph
3. CIt reaches a defined area at a low cost per reader
4. DIt reaches readers in every province of the country

1. AThe payoffs are known actual results rather than forecasts of the future
2. BThe probabilities are set by law and cannot be changed
3. CThe tree can only be drawn for a two option decision
4. DThe probabilities are subjective estimates that may be wrong

1. AThe financial payoff expected from each branch
2. BQualitative factors such as staff morale and reputation
3. CThe cost of each course of action open to the firm
4. DThe probability attached to each possible outcome

1. AIt forecasts the cash the business will receive next year
2. BIt lists the skills and the morale of the workforce
3. CIt is a snapshot at one date and records only past events
4. DIt shows every asset at its current market value

1. AEvery department's budget is built from the sales budget
2. BEvery department is given exactly the same amount to spend
3. CEach department prepares its budget without seeing the others
4. DThe budget replaces the need for departments to meet at all

1. AIt is filed away until the accounts are prepared at the year end
2. BIt is rewritten each month to match what was actually spent
3. CActual results are compared with it and variances investigated
4. DIt fixes the prices the business charges its customers

1. ADecisions are taken by managers close to the local market
2. BHead office keeps control of every operating decision
3. CEvery branch of the firm offers the same customer experience
4. DBuying and marketing economies of scale are increased

1. AThe business responds more slowly to a local competitor
2. BDivisions may pursue their own interests rather than the firm's
3. CSenior managers are left with no time to think about strategy
4. DLocal managers are given no responsibility to develop

Answer this when you sit the paper.

1. ABy the region or area each manager is responsible for
2. BBy the product line each manager is responsible for
3. CBy the length of service each manager has given the firm
4. DBy the function each manager performs for the firm

1. AIt is an average that ignores attitude to risk
2. BIt cannot be calculated without a computer
3. CIt gives a different answer every time it is worked out
4. DIt takes account of factors that cannot be measured

1. AIts cash flow forecast shows whether the loan can be repaid
2. BIt transfers the risk of the whole project onto the bank itself
3. CIt removes the need for the bank to take any security
4. DIt fixes the interest rate that will be charged

1. AThey are based on the firm's audited past accounts
2. BThey are written by the borrower to persuade the lender
3. CThey must by law understate the expected returns
4. DThey are prepared by an independent auditor each year

1. AWhether the objectives that were set are achieved
2. BThe output obtained from the resources used
3. CThe total value of the assets the business owns
4. DHow large the business is compared with its rivals

1. AIt is effective but not efficient
2. BIt is both efficient and effective
3. CIt is neither efficient nor effective
4. DIt is efficient but not effective

1. AIt stops goods being issued until a count is done
2. BIt orders automatically once stock hits the reorder level
3. CIt values the stock held on a FIFO or LIFO basis
4. DIt keeps a much larger buffer stock of every item held

1. AThe law requires a count before any order is placed
2. BThe system deletes its records at the end of each day
3. CTheft, breakages and mis-scans leave the records wrong
4. DThe system cannot value stock without a physical count

Answer this when you sit the paper.

1. ADemand is inelastic, so a price rise would raise revenue
2. BDemand does not respond to a change in price at all
3. CDemand is unitary, so revenue stays the same either way
4. DDemand is elastic, so quantity changes more than price

1. AIt rose from $120.00 to$135.00
2. BIt rose from $135.00 to$160.00
3. CIt stayed at $135.00
4. DIt fell from $135.00 to$120.00

1. AA rumour about redundancies on the shop floor
2. BA minuted meeting between a manager and a subordinate
3. CA conversation between two workers in the staff canteen
4. DNews passed between friends on social media

1. AThe message is easily distorted and cannot be verified
2. BIt stops at the boundary between two departments
3. CIt leaves a written record that can be used as evidence
4. DIt travels far more slowly than an official memorandum

1. AIt reaches every customer in the market, online or not
2. BIt stops competitors from seeing the firm's campaign
3. CIt reaches a large audience at a fraction of the cost
4. DIt removes the need to produce any content at all

1. AThe cost of each person reached is higher than television
2. BResponse to a campaign cannot be measured at all
3. CThe firm loses control of the message it puts out
4. DA price change takes weeks to reach the audience

1. AThey give the whole organisation one direction to work in
2. BThey remove the need to plan how resources are used
3. CThey replace the accounts as a record of past trading
4. DThey stop competitors from entering the same market

1. AThey show the market share every rival firm has won
2. BThey are the standard actual results are measured against
3. CThey set the price the business must charge its customers
4. DThey record the resources the business has already used

Answer this when you sit the paper.

1. AThe profit motive forces costs down and ends the subsidy
2. BIt gives the treasury a permanent stream of yearly income
3. CThe state keeps control of pricing and employment decisions
4. DA private owner is required to keep every service running

1. AIt lasts only as long as the firm keeps the lowest prices
2. BIt is written into the firm's objectives by the board
3. CIt comes from spending more on advertising than rivals do
4. DCustomers value it and rivals cannot easily copy it

1. ADemand no longer depends on the quality of the product
2. BDemand becomes less price elastic, so rises can be passed on
3. CDemand rises whenever a competitor lowers its own price
4. DDemand becomes more price elastic, so prices have to be cut

1. ATraining removes the need to pay commission on sales
2. BTrained staff can be paid less than untrained staff
3. CTheir competence is the source of the firm's advantage
4. DThe law requires a trained representative at every sale

1. ATraining in the operation of the workshop machinery
2. BTraining in the design of high quality Mukwa furniture
3. CTraining in credit assessment and in collecting debts
4. DTraining in the export rules of neighbouring countries

1. AIt funds premises and stock that earn more than bank interest
2. BThe cash is converted into foreign currency and held on deposit
3. CThe cash is repaid to shareholders as a special dividend
4. DThe cash pays the tax due on profits earned at home

1. AThe brand becomes known before any money is spent
2. BA downturn in one economy no longer threatens the whole business
3. CThe firm no longer depends on trained sales representatives
4. DExchange rate movements can no longer affect its profit

1. AThe brand is already well known, so no promotion is needed
2. BUnit costs rise because output falls in every market
3. CThe home market must be closed while the branches open
4. DManagement is stretched thin and control may slip

1. ABuy the largest established retailer in that market
2. BOpen in every target country in the same year
3. CEnter one market first, with a partner who knows it
4. DSell through the internet only and open no branch

Answer this when you sit the paper.

1. AThey absorb price increases and pay cash, so no debts arise
2. BThey buy in much larger quantities than any other segment
3. CThey are the cheapest group of customers for a firm to reach
4. DThey switch supplier quickly whenever a price is raised

1. AThe segment buys furniture regardless of its income
2. BThe segment expects the lowest price in the market
3. CThe segment is served by no other firm in the market
4. DThe segment is small, which limits how far the firm can grow

1. AIt removes the need for a credit manager to be recruited
2. BIt raises the price the upmarket customer has to pay
3. CIt ties the firm to the segment it already serves
4. DIt brings in customers who cannot pay cash and risks bad debts