Business Studies Paper 2 June 2017

1. ATwo firms merge all of their operations
2. BA firm sells through an agent
3. CAn outside party does part of the work
4. DA firm buys a supplier outright

1. AIts profit over industry sales
2. BIts sales over industry sales
3. CIts sales over the number of rivals
4. DIts sales over its own capacity

Answer this when you sit the paper.

1. AIt has fallen by 50 percentage points
2. BIt has fallen by 35 percentage points
3. CIt has risen by 25 percentage points
4. DIt has fallen by 30 percentage points

Answer this when you sit the paper.

1. A10 %
2. B20 %
3. C25 %
4. D40 %

1. AThe problem is a fall in demand
2. BThe problem is competitive
3. CThe problem is poor bookkeeping
4. DThe problem is a rise in costs

1. AWhether a rival has entered
2. BWhether the industry has grown
3. CWhether the firm still profits
4. DWhether the firm has lost share

1. ALocal land became cheaper to buy
2. BLocal demand for eggs fell away
3. CLocal feed prices were pushed up
4. DLocal wage rates were pushed up

1. AWorkers must approve the move
2. BThe law requires a ballot first
3. CUnions set the price of the land
4. DSkilled staff may refuse to move

1. AIts stock of raw materials
2. BIts right to trade at all
3. CIts reputation and its customers
4. DIts skilled production workers

1. ARaising the price of its eggs
2. BClosing the business altogether
3. CCompeting differently where it is
4. DMoving to a third town instead

1. AThe number of products it sells
2. BThe number of people employed
3. CThe age of the business itself
4. DThe value of its yearly profit

1. AIt is never published at all
2. BIt is fixed by the tax office
3. CIt excludes the credit sales made
4. DInflation raises it on its own

1. AThe profit it keeps
2. BThe sales it makes
3. CThe wages it pays out
4. DThe money invested in it

1. AShare figures are never published
2. BShare changes every single month
3. CThe market can be defined narrowly
4. DShare ignores the firm's own costs

1. AOwnership is spread very widely
2. BA board of directors is elected
3. CShares are traded on a market
4. DOwners are also the managers

1. AThe same figure means different things
2. BEach industry has its own rate of taxation
3. CTurnover is measured differently
4. DEmployment law differs by industry

1. ALiability becomes limited at once
2. BLess tax is paid on the profit
3. CMore capital comes into the firm
4. DThe bank must lend at a fixed rate

1. AIt passes to the bank
2. BIt becomes a company
3. CIt comes to an end
4. DIt is sold by the court

1. AThey guarantee the firm's debts
2. BThey limit the owner's liability
3. CThey cover the shop and the hours
4. DThey fix the prices to be charged

1. ALimited by guarantee
2. BLimited to one year
3. CUnlimited
4. DLimited to capital

1. AOne partner's act binds them all
2. BThe firm must be registered first
3. CPartners share the profit equally
4. DPartners may take the stock away

1. AA memorandum
2. BA partnership deed
3. CA share certificate
4. DA trading licence

1. AAn ordinary trading partnership
2. BA private limited company
3. CA limited partnership
4. DA sole trader business

1. AThe line down which authority passes
2. BThe rules a department must follow
3. CThe grouping of jobs by function
4. DThe number of people a manager supervises

1. ALevels between the top and the shop floor
2. BDecisions taken at head office
3. CSubordinates reporting to a manager
4. DDepartments in the organisation

1. AA divisional one by region
2. BA matrix with two lines
3. CA tall one with many levels
4. DA flat one with very few levels

1. AKeep every decision in hand
2. BDelegate more to subordinates
3. CReport directly to the board
4. DSupervise each worker closely

1. AOne department for each product
2. BOne objective for the whole firm
3. COne immediate superior for each
4. DOne manager for every ten staff

1. AOr the span of control widens
2. BOr the structure becomes flat
3. COr a manager is blamed unfairly
4. DOr the chain of command is broken

1. AThe right to instruct others
2. BResponsibility for the outcome
3. CAuthority to take decisions
4. DThe resources to do the work

1. AIt reports to two superiors
2. BIt advises without commanding
3. CIt carries no job description
4. DIt commands without advising

1. AThey fix the wage rate paid
2. BThey set the size of the firm
3. CThey show the path to promotion
4. DThey decide the hours that are worked

1. ASpecialists cannot be trained
2. BAuthority cannot be delegated
3. CProducts cannot be costed
4. DDepartments work as silos

1. AThe holder cannot be dismissed
2. BThe wage is then fixed by law
3. CThe span of control is widened
4. DThe post outlives the holder

1. ADecisions are slow and distorted
2. BManagers have too few levels
3. CPromotion becomes impossible
4. DDepartments cannot specialise

1. AAn external auditor's chart
2. BA separate wage structure
3. CAn informal organisation
4. DA second board of directors

1. AStaff numbers and skills to plans
2. BWage rates to the local cost of living
3. CTraining budgets to profit made
4. DWorking hours to production runs

1. AThe right person is in the job
2. BThe union has been consulted
3. CFewer staff need to be hired
4. DThe wage bill is then lower

1. ATo retrain a redundant worker
2. BTo assess an existing employee's work
3. CTo test a candidate's ability
4. DTo settle a new employee quickly

1. AIt links a person's work to them
2. BIt sets the wage rate for all
3. CIt records the hours worked
4. DIt replaces the written job description

1. AThe failure of a supplier
2. BA strike by the whole plant
3. CA fall in the market price
4. DThe loss of a key manager

1. AMachinery breaks down less often
2. BCustomers pay their bills sooner
3. CDisputes and stoppages are fewer
4. DMaterials arrive on time daily

1. AStock cannot be held at all
2. BMachinery is not required
3. CWages are the only cost
4. DThe employee is the product

1. AA well sited factory building
2. BA long term bank facility
3. CModern production machinery
4. DA committed skilled workforce

1. AIt is met by the government
2. BIts cost falls on the workers
3. CIt is forbidden in a downturn
4. DIts return is hard to measure

1. AThe cost is shared by both
2. BThe trained worker is poached
3. CThe trainer moves to another employer
4. DThe methods are published

1. AIts procedures slow line managers
2. BIts staff are paid too little
3. CIt has no written policies
4. DIt reports only to the auditor

1. AWhether it keeps good records
2. BWhether it handles the payroll
3. CWhether it sits at board level
4. DWhether it is a large section

1. AA private school
2. BA highly automated plant
3. CA hotel and restaurant
4. DA retail chain

1. ASales volume and the gross margin
2. BPrice and cost of production
3. CMarket growth and relative share
4. DProfit and length of life

1. ALow share, high market growth
2. BLow share, low market growth
3. CHigh share, low market growth
4. DHigh share, high market growth

1. AA weak seller in a new market
2. BA weak seller in a flat market
3. CA leader in a mature market
4. DA leader in a growing market

1. ARaise its price or cut output
2. BInvest heavily or withdraw it
3. CAdvertise it or repackage it
4. DSell it abroad or at home

1. AIt is priced below its cost
2. BIt is divested or harvested
3. CIt is given heavy promotion
4. DIt is made the firm's leader

1. ADividends and nothing else
2. BStars and question marks
3. CIts own advertising only
4. DThe firm's fixed assets

1. AIt needs four products at least
2. BIt cannot be drawn as a chart
3. CIt uses only two variables
4. DIt ignores the market's growth

1. AAn existing product in a new market
2. BA new product in the existing market
3. CA new product in a new market entirely
4. DAn existing product in its own market

1. AMarket penetration
2. BMarket development
3. CDiversification
4. DProduct development

1. AMarket penetration
2. BMarket development
3. CDiversification
4. DProduct development

1. AIt always requires a new factory
2. BIt needs the largest advertising spend
3. CNeither product nor market is known
4. DIt cannot use existing distribution

1. AA firm planning to expand
2. BA firm entering a new country
3. CA firm launching a new line
4. DA firm planning to withdraw

1. AOne suits large firms only
2. BOne is drawn, the other is not
3. COne uses money, the other time
4. DOne looks in, the other out

1. AOne worker completing each unit
2. BMuch labour, relatively little machinery
3. CMuch machinery, relatively little labour
4. DEqual spending on labour and plant

1. AThe workforce is too costly
2. BThe factory runs at night only
3. CThe design changes every year
4. DThe components are too small

1. ASmall demand and a varied product
2. BFalling demand and a brand new product
3. CLocal demand and a cheap product
4. DHuge demand and a standard product

1. APeople cannot work at night
2. BPeople bring dust into the room
3. CPeople cannot be trained fast
4. DPeople can be paid less than a machine costs to run

1. ARecruit more skilled fitters
2. BMove to a larger building
3. CReturn to hand assembly
4. DRe-tool the automated line

1. ATen thousand plain tee shirts
2. BOne wedding gown to measure
3. CA season's range in six sizes
4. DA retail chain's whole order

1. ASelling through supermarkets
2. BNiche marketing at a premium
3. CMass marketing at a low price
4. DPenetration pricing on volume

1. AThe machinery is very costly
2. BFabric has to be bought in huge quantities
3. CAdvertising must be national
4. DLittle division of labour is used

1. AThey are paid by the piece
2. BThey see the finished garment
3. CThey supervise other workers
4. DThey work fixed short hours

1. AGeneral purpose machines suffice
2. BFabric is supplied to it on credit
3. CPremises are provided free
4. DNo workers need be employed

1. AIt gains no economies of scale
2. BIt pays a higher rate of duty
3. CIts garments are of poor quality
4. DIt cannot advertise its name

1. AOutput and lead times will not allow it
2. BThe garments cannot be labelled
3. CThe law forbids such a contract
4. DRetailers will not deal with a small tailor

1. ABatch production
2. BCell production
3. CJob production
4. DFlow production

1. AThe dividend on new shares
2. BRepayment of an old loan
3. CCosts before the first revenue
4. DCosts of a later expansion

1. AWorking capital
2. BStaff training
3. CAdvertising spend
4. DResearch work

1. AA new delivery vehicle
2. BA seasonal gap in cash
3. CA second factory unit
4. DA takeover of a rival

1. AThe workforce has grown
2. BThe technology has dated
3. CThe lease has been renewed
4. DThe insurance has expired

1. AUse the fastest source there is
2. BChoose the cheapest available
3. CBorrow the largest sum offered
4. DMatch the source to the use

1. ATrade credit
2. BRetained profit
3. CA debenture issue
4. DA bank overdraft

1. AIt needs no security at all
2. BInterest is not charged at all
3. CRepayments are fixed and known
4. DIt can be repaid on any day

1. AThe loan cannot be repaid early
2. BInterest is charged monthly
3. CBanks refuse to lend to one
4. DPersonal assets are at risk

1. AA market value
2. BA date for repayment
3. CA right to vote
4. DA claim on profit

1. AIt leaves it unchanged
2. BIt lowers it
3. CIt removes it entirely
4. DIt raises it

1. AIt carries voting rights
2. BIt carries fixed interest
3. CIt is issued to employees
4. DIt is repaid out of profit

1. ATrade credit from suppliers
2. BAn invoice factoring service
3. CA hire purchase agreement
4. DA bank overdraft facility

1. AA share issue
2. BAn overdraft
3. CA term loan
4. DA debenture

1. AThe time taken to finish the activity
2. BThe number of workers on it
3. CThe cost of finishing it early
4. DSpare time before it delays the job

1. AThe shortest route through it
2. BThe route with the most float
3. CThe longest route through it
4. DThe cheapest route through it

1. ANone
2. BHalf its duration
3. COne day
4. DAs much as the project

1. ABy working backward through it
2. BBy ranking activities by cost
3. CBy working forward through it
4. DBy adding up all the floats

1. AIt cannot be completed
2. BIt finishes three days late
3. CIt finishes one day late
4. DIt finishes on the same day

1. AOne with the most float
2. BThe costliest activity
3. CThe longest single activity
4. DOne on the critical path

1. AIt shows what each will cost
2. BIt shows when each is needed
3. CIt sets the quantity to order
4. DIt names the cheapest supplier

1. ACosts can be phased over time
2. BMaterials become cheaper
3. CPayments can be delayed at will
4. DInterest charges are removed

1. AIt removes the penalty entirely
2. BIt fixes the price of the work
3. CIt supports a claim for more time
4. DIt replaces the written building contract

1. AThe choice of paint colour
2. BThe number of subcontractors
3. CWeather and ground conditions
4. DThe size of the site office

1. AThey are free when needed
2. BThey are owned by the firm
3. CThey cost the same each day
4. DThey never break down at all

1. AThe float available
2. BThe duration of each
3. CThe cost and the quality
4. DThe order of activities

1. AA long complex one
2. BA short simple one
3. CA multi trade one
4. DA penalty bound one

1. AProfit is banked, cash is spent
2. BProfit is yearly, cash is daily
3. CProfit is earned, cash is received
4. DProfit is taxed, cash is not

1. AExpanding beyond the working capital
2. BSelling below the total cost of a unit
3. CBorrowing more than the assets
4. DHolding stock for far too long

1. AThe machine is not an asset
2. BOnly depreciation is charged
3. CNo tax relief is available
4. DThe cash is repaid next year

1. AThe principal is not an expense
2. BThe lender charges no interest
3. CThe loan is a current asset
4. DThe interest is not an expense

1. AJust after its selling season
2. BAt the close of its tax year
3. CIn the middle of the season
4. DJust before its selling season

1. AA deposit taken with the order
2. BA larger stock of timber held
3. CA discount for a cash sale
4. DA longer guarantee offered

1. APrepaid insurance on the plant
2. BDebtors owed by retail furniture buyers
3. CStock of timber and finished suites
4. DCash held in the bank account

1. ASuppliers will charge less
2. BThe timber will lose its value
3. CStorage costs will rise again
4. DProduction stops for want of it

1. AMargin on every early payment
2. BThe debt itself if unpaid
3. CThe right to charge interest
4. DThe goodwill of its suppliers

1. AIt costs more than it raises
2. BIt must be approved by a bank
3. CIt raises the firm's gearing
4. DIt can be done only once

1. AThe interest the firm must pay
2. BA liability repayable on demand
3. CThe security given to the bank
4. DThe need to keep a bank account

1. AA cash budget
2. BA stock record card
3. CAn income statement
4. DA sales budget

1. ADelaying suppliers
2. BFaster debt chasing
3. CLong term finance
4. DA larger overdraft

1. AReturn as a percentage rate
2. BProfit earned over the life
3. CTime to recover the outlay
4. DValue added in today's money

Answer this when you sit the paper.

1. ACash flows after payback
2. BThe order of the cash flows
3. CThe size of the initial outlay
4. DCash flows before payback

1. ALess time for things to go wrong
2. BInterest charges are avoided
3. CThe project earns more in total
4. DThe discount rate is then lower

1. AThe firm's cost of capital
2. BThe bank's overdraft rate
3. CThe rate of price inflation
4. DThe return on capital employed

1. AAccept the project
2. BReject the project
3. CShorten the project
4. DDefer the project

1. AIt ignores the size of the outlay
2. BIt ignores the cost of capital
3. CIt ignores the time value of money
4. DIt ignores the later cash flows

1. AThe initial outlay figure
2. BThe forecast of demand
3. CThe life of the machine
4. DEvery year's cash flow

1. ACosts and benefits to the buyer
2. BCosts and benefits to the owner
3. CCosts and benefits to the lender
4. DCosts and benefits to society

1. AA new public road
2. BA new sales campaign
3. CA new shop fitting
4. DA new delivery van

1. ANoise borne by neighbours
2. BInterest paid to a lender
3. CWages paid to the workers
4. DRent paid on the premises

1. AIt cannot be discounted
2. BIt suits private firms only
3. CIt ignores the time value
4. DMoney values are subjective