Business Studies Paper 1 November 2023

1. AStable government policy that favours existing businesses
2. BA stable, peaceful economic and political environment
3. CPoor financial discipline and financial management
4. DThorough, accurate market research carried out before launch

1. ADebentures carry no obligation to pay interest in a loss-making year
2. BInterest on debentures is a tax-deductible expense and large sums can be raised without diluting ownership
3. CDebenture holders gain voting rights and a say in how the firm is run
4. DDebentures never need to be repaid to the lender

1. AIt removes the need for the firm to ever repay the capital borrowed
2. BInterest must be paid even if the firm makes a loss, and default can force the firm into liquidation
3. CIt permanently dilutes the ownership and control of the existing shareholders
4. DIt is the cheapest possible source of finance available to any firm

Answer this when you sit the paper.

1. ACapital
2. BPackaging
3. CDistribution
4. DAdvertising

1. AIt removes the need for the firm to rely on its suppliers
2. BIt reduces stockholding costs and improves quality by cutting reworking and wastage
3. CIt removes the need for the firm to ever order any further stock
4. DIt guarantees the firm will always be able to meet a sudden rise in demand

1. AIt leaves the firm unable to meet an unexpected rise in demand because little stock is held
2. BIt removes the need for the firm to trust its suppliers
3. CIt increases economies of scale because orders become much larger
4. DIt lowers ordering costs because orders are placed less often

Answer this when you sit the paper.

1. AIt is always the cheapest way for the firm to deliver its products
2. BIt gives the firm direct contact with customers, useful market research, and full control over the marketing mix
3. CIt removes the firm's responsibility for storing or holding any stock
4. DIt guarantees that every customer will be able to try the shoes on before buying

1. AIt prevents the firm from tailoring products to individual customer needs
2. BIt removes the firm's ability to gather market research from its customers
3. CIt gives intermediaries a mark-up on every pair of shoes sold
4. DDelivering each item sold directly to the customer can be expensive, and the firm bears all storage and stock costs

1. AIt removes the need to ever discontinue a poorly performing product
2. BIt removes the need for the firm to analyse or group its products at all
3. CIt guarantees that every product in the range will be profitable
4. DProfit-making products can support loss-making ones, and the firm enjoys risk-bearing economies of scale

1. AIt prevents the firm from earning revenue from more than one market
2. BIt is expensive to maintain every product in the portfolio, and inaccurate grouping can result if the analysis is insufficient
3. CIt guarantees risk-bearing economies of scale regardless of how the portfolio is managed
4. DIt removes any possibility of the firm rebranding or innovating

Answer this when you sit the paper.

1. AThey show the lead time and help the firm avoid under- or over-stocking raw materials
2. BThey remove the need for the business to ever hold a buffer stock
3. CThey guarantee that a competitor will never run a successful promotion
4. DThey are equally suitable for businesses of every size

1. AThey eliminate all warehouse and storage costs for the business
2. BThey make lead time completely certain and easy to estimate
3. CThey require research and so are costly, and can be difficult to apply in an unstable economic environment
4. DThey remove the need for the business to hold any raw materials at all

1. ABookkeeping
2. BPlanning
3. CAuditing
4. DAdvertising

Answer this when you sit the paper.

1. ADebentures
2. BNon-current (fixed) assets
3. CShare capital
4. DTrade receivables (debtors)

1. AIt shows the qualitative factors, such as staff morale, that affect the firm's performance
2. BIt shows the bank the actual current market value of every asset the firm owns
3. CIt gives a valuation of fixed assets that can be used as collateral, and shows the firm's gearing and liquidity
4. DIt guarantees the bank that the loan will always be repaid on time

1. AIt is only a snapshot at one point in time and can be window dressed, so it may not reflect the firm's real market value or qualitative position
2. BIt cannot be used to show the gearing level of the firm at all
3. CIt always overstates the value of the firm's fixed assets
4. DIt removes the need for a bank to consider a firm's liquidity position

1. AThe colour of its company logo
2. BThe number of public holidays it observes
3. CThe age of its founder
4. DThe number of employees it has

1. AThe number of competitors operating in a completely different industry
2. BThe number of customer complaints received in a single day
3. CIts sales turnover
4. DThe number of years since it last changed its name

1. ABy preventing employees from ever contributing feedback
2. BBy using a leadership style appropriate to the situation and the workforce
3. CBy removing all written records of instructions given to staff
4. DBy restricting all communication to one single channel regardless of the message

1. ABy discouraging any two-way exchange of information with staff
2. BBy keeping the firm's objectives secret from all employees
3. CBy encouraging worker participation and improving industrial relations
4. DBy avoiding creating a conducive working environment

1. AIt reduces labour costs through automated teller machines and enables fast communication such as email
2. BIt guarantees the bank's information can never be hacked
3. CIt removes the need for the bank to train any of its employees
4. DIt removes the bank's need to store any customer information

1. AIt always increases the number of employees a bank must hire
2. BIt removes the risk of the bank's information ever being accessed by competitors
3. CICT gadgets are costly to acquire, maintain and train staff on, and information can be hacked, exposing the bank to competitors
4. DIt slows down how quickly bank information can be accessed

1. AIt guarantees that every worker will be equally motivated by it
2. BIt removes the need for managers to give staff any feedback
3. CIt removes the need for the business to ever provide staff training
4. DIt helps identify workers' training needs and aids their career development

1. AIt removes the need for a business to identify training needs
2. BIt guarantees career development for every member of staff
3. CIt is time consuming and can be subjective, and can demotivate staff if resources do not match the targets set
4. DIt always improves every worker's performance immediately

1. AIt enables the firm to plan work schedules and find the proper incentive payment for workers
2. BIt guarantees that every worker will produce identical output
3. CIt removes the need for the firm to monitor worker performance
4. DIt removes the need for the firm to plan its manpower requirements

1. AIt guarantees the firm will never need to change its work schedules
2. BIt removes the need for the firm to ever pay an incentive
3. CIt prevents the firm from setting productivity goals
4. DIt helps the firm cost its activities and monitor worker performance

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AThe cost of the finance and its repayment period
2. BThe colour scheme used in the firm's marketing materials
3. CThe number of public holidays the firm observes each year
4. DThe distance between the firm's head office and its bank branch

1. AThe firm's preferred font for internal memos
2. BThe gearing level of the firm and the flexibility of the source
3. CThe number of years the firm's current logo has been in use
4. DThe average age of the firm's customers

Answer this when you sit the paper.

1. AA business run entirely through a large, formalised management structure
2. BA business whose defining feature is that it never seeks bank finance
3. CA business with a large market share and consistently high profits
4. DA tiny, minute business run along personal lines with a few workers and low profits

Answer this when you sit the paper.

1. AA shortage of additional capital and working capital, and growing co-ordination problems
2. BA guaranteed fall in sales as the business grows larger
3. CA complete absence of any need for further supervision
4. DA permanent surplus of working capital with no productive use

Answer this when you sit the paper.

1. AIt guarantees the firm a monopoly in the restaurant industry
2. BIt always lowers the price the firm is able to charge customers
3. CIt increases the firm's profits and lets it charge premium prices
4. DIt removes the need for the firm to maintain any competitive advantage

Answer this when you sit the paper.

1. AIt removes the need for any co-ordination between the three departments
2. BIt guarantees the business will never face a communication problem
3. CIt prevents any one department from ever becoming overloaded with work
4. DIt is efficient, allows specialisation, and provides quality departmental ideas

1. AIt always increases job satisfaction for every member of staff
2. BIt causes communication and co-ordination problems between departments, and can be slow to respond
3. CIt removes the possibility of over-specialisation within a department
4. DIt guarantees that decisions will always be made quickly

1. ABy removing all training and advice services for small businesses
2. BBy restricting small firms from accessing any infrastructure
3. CBy offering low interest rate loans and subsidies
4. DBy raising the rate of taxation charged to all small firms

1. ABy helping the firm find foreign markets through consular officials and by developing infrastructure
2. BBy requiring the firm to relocate its premises without any government support
3. CBy banning the firm from receiving any advice on how to run its business
4. DBy increasing the paperwork required before any loan is approved

1. AIt guarantees the firm will never need to repay any support received
2. BIt has no effect at all on the government's own expenditure
3. CIt always removes every cost the firm would otherwise have faced
4. DIt comes with strings attached that can hinder accessibility and create a dependency syndrome