Business Studies Paper 1 November 2022

1. AIntroducing a profit-sharing scheme for all employees
2. BGiving employees more responsibility and interesting tasks through job enrichment
3. CIncreasing the annual bonus paid for reaching sales targets
4. DRaising the piece-rate paid for each unit produced

1. AWorkers are motivated mainly by involvement in decision making rather than supervision
2. BWorkers will exercise self-direction if they are committed to the firm's objectives
3. CWorkers are naturally lazy, dislike work and must be closely supervised and controlled to meet targets
4. DWorkers enjoy work and willingly seek out responsibility without being asked

1. AA directive, autocratic style with tight supervision and control
2. BA style based entirely on employee self-appraisal with no direct supervision
3. CA participative style that shares decision making with employees
4. DA laissez-faire style that leaves employees to organise their own work

1. AVariance
2. BRange
3. CStandard deviation
4. DMean

1. AThe sequence of activities that determines the shortest possible time to complete the whole project
2. BThe cheapest possible sequence of activities regardless of time taken
3. CThe activities that can be delayed without affecting the finish date
4. DThe order in which materials must be delivered to the site by suppliers

1. AIt removes the need to order materials in advance of when they are needed
2. BIt guarantees the project will be completed without exceeding its budget
3. CIt shows which activities can slip without delaying the whole project, so resources are prioritised on the critical ones
4. DIt eliminates the need to coordinate work between different subcontractors

1. AGovernment regulations that require every proposal to be approved instantly
2. BUncertainty in forecasting costs, revenue and demand for the new venture
3. CToo many banks being willing to lend money to new projects
4. DAn oversupply of accurate market research freely available to the firm

Answer this when you sit the paper.

1. ATo record the personal curriculum vitae of each member of staff
2. BTo give a detailed month by month cash flow forecast for the first year
3. CTo list every risk the business could possibly face in full technical detail
4. DTo summarise the whole plan so a reader can quickly judge whether the idea is worth pursuing

1. AUsing misleading advertising to exaggerate what a product can do
2. BPaying suppliers promptly according to the agreed credit terms
3. CProviding customers with accurate information about a product's ingredients
4. DPublishing an annual report that is independently audited

Answer this when you sit the paper.

1. AIt guarantees that all workers will receive an equal share of the firm's profits
2. BIt increases the space needed for warehousing raw materials
3. CIt lowers stockholding costs and shortens lead times by cutting waste in materials and time
4. DIt removes the need for the firm to ever hold any stock at all

1. AMarket penetration pricing
2. BPrice skimming
3. CJust in time production
4. DAbsorption costing

Answer this when you sit the paper.

1. AIt cannot be used to compare projects of different sizes
2. BIt ignores the timing of cash flows and is based on accounting profit rather than cash
3. CIt cannot be calculated without specialist computer software
4. DIt is too complicated for a non-specialist manager to understand

1. ACommission-only pay
2. BTime-rate
3. CSalary
4. DPiece-rate

1. ATime-rate
2. BPiece-rate
3. CProfit-related pay
4. DPerformance-related bonus pay

1. AIt removes all risk of the business ever running short of stock or cash
2. BIt guarantees that actual sales will match the forecast figures exactly
3. CIt replaces the need for a business to hold any working capital
4. DIt lets managers plan staffing, stock and cash requirements ahead of time

1. AIt is only legally permitted for firms above a certain size
2. BIt is based on past data and assumptions that may not hold if conditions change
3. CIt always takes longer to produce than the value of the plans it supports
4. DIt cannot be used alongside a firm's budgeting process

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AIt calculates how much profit the business made in the period
2. BIt removes the need to ever offer customers credit terms
3. CIt shows how quickly credit sales are being turned into cash, helping managers control credit and plan cash flow
4. DIt guarantees that all customers will pay their accounts on time

1. AIt is the only communication channel management is able to fully control
2. BIt requires expensive equipment that many small firms cannot afford
3. CMessages sent through it always reach every employee at exactly the same time
4. DInformation passed through it can become distorted or exaggerated as it spreads from person to person

1. ABecause it is used exclusively for official announcements approved by managers
2. BBecause it can spread rumours and gossip that create anxiety and mistrust of management
3. CBecause it is always slower than any formal, written communication channel
4. DBecause it can only be used by employees at the very top of the organisation

1. ASetting the firm's minimum wage rates without reference to management
2. BNegotiating trade union pay claims without any human involvement
3. CStoring and retrieving employee records such as pay, leave and performance electronically
4. DPhysically interviewing every job applicant on the firm's behalf

1. ABy removing the need for the department to shortlist or select candidates at all
2. BBy fixing the salary offered to every successful applicant automatically
3. CBy making it illegal to advertise vacancies through any other method
4. DBy letting vacancies be advertised online and applications screened faster, cutting cost and time

Answer this when you sit the paper.

1. AIt prevents specialists from different departments ever working together
2. BIt makes it impossible for the firm to respond flexibly to new projects
3. CDual reporting to two managers can cause confusion and conflict over authority and resources
4. DIt requires the firm to permanently restructure for every new project

1. AIt raises revenue for the government from the sale, which can reduce debt or fund other spending
2. BIt guarantees that prices charged to consumers will fall
3. CIt removes the need for the industry to be regulated in any way
4. DIt always creates instant, genuine competition in every industry it affects

1. AA privatised former monopoly may still lack real competition, and jobs may be cut as the firm reduces costs
2. BThe government automatically regains full control of the industry after the sale
3. CIt removes any possibility of new investment entering the industry
4. DIt always increases the number of people employed in the industry

1. AA memo provides a permanent written record that can be referred back to later
2. BA memo is always faster to deliver than speaking to someone directly
3. CA memo cannot be read by more than one member of staff
4. DA memo removes the need for the firm to keep any other business records

1. ABecause a memo can only ever be addressed to one named individual
2. BBecause a memo automatically translates itself into every reader's home language
3. CBecause a memo removes the legal responsibility of the manager who wrote it
4. DBecause a memo can be quickly copied and circulated so every recipient gets an identical message

1. ABecause it routes every message through the head of the institution first
2. BBecause every member can communicate directly with every other member, encouraging open discussion and quick feedback
3. CBecause it limits communication to written memos only
4. DBecause only one member of the committee is allowed to speak at a time

1. ABecause it can only be used between exactly two people at a time
2. BBecause with many people communicating freely at once, the network can become slow, disorganised and information can be duplicated or lost
3. CBecause it is the fastest possible way to send one instruction to every member of staff
4. DBecause it prevents any member of staff from contributing an idea

Answer this when you sit the paper.

1. AIndustry sales fell sharply between 2013 and 2014 while Sitshwe's sales stayed the same
2. BThe firm stopped producing confectionery products in 2014
3. CThe firm sold only one type of product at a single fixed price throughout the period
4. DThe firm combined low-priced mass-appeal bread with high-priced specialist products, widening its appeal to more customers

1. AThat industry sales and Sitshwe's sales are unrelated figures with no meaningful comparison
2. BThat the whole industry grew at roughly the same fast rate as Sitshwe
3. CThat Sitshwe's growth came mainly from taking sales directly from competitors rather than from overall market growth
4. DThat Sitshwe's market share must actually have fallen over the period

Answer this when you sit the paper.

Answer this when you sit the paper.

1. ATo appeal to the majority of the market and increase sales volume and market share
2. BTo maximise the profit margin earned on each individual loaf sold
3. CTo signal to customers that the bread was of exceptionally high quality
4. DTo restrict the product to only the wealthiest customers in the market

1. ATo appeal to the largest possible number of price-sensitive customers
2. BTo match exactly the price charged for its ordinary, low-price bread
3. CTo earn a high profit margin from the part of the market willing to pay for quality and exclusivity
4. DTo eliminate the need for the firm to maintain any quality standards

1. AIt prevents any competitor from ever entering the bakery market
2. BIt allows the firm to charge premium prices and earn higher profit margins
3. CIt removes the need for the firm to advertise its products at all
4. DIt guarantees that raw material costs will fall for the firm

1. AIt builds customer loyalty and reputation, making demand less sensitive to competitors' lower prices
2. BIt makes every customer equally price-sensitive regardless of the firm's reputation
3. CIt removes the need for the firm to maintain any quality control procedures
4. DIt guarantees the firm a monopoly over the bakery industry

1. AProducing quality products removes the firm's need to serve the mass market at all
2. BQuality ingredients, skilled staff and quality control raise costs, which can push prices beyond what the mass market will pay
3. CQuality products cannot be sold alongside a firm's other, lower-price product lines
4. DQuality products always cost less to produce than ordinary, low-price products