Business Studies Paper 2 June 2018

1. ASelling one product to the whole market at once
2. BDividing a market into groups with similar needs
3. CDividing a firm's sales force between its regions
4. DSplitting a factory's output between two brands

1. AThe firm's profit divided by its own total sales
2. BThe firm's sales divided by the number of rivals
3. CThe firm's sales divided by total market sales
4. DTotal market sales divided by the firm's own sales

Answer this when you sit the paper.

Answer this when you sit the paper.

1. A45 percentage points
2. B25 percentage points
3. C20 percentage points
4. D25 per cent of the market

1. AIt cannot be worked out
2. BIt has fallen sharply
3. CIt has stayed the same
4. DIt has risen sharply

1. ARemoved the need for any further promotion
2. BRaised the prices charged right across the market
3. CReduced the total size of the whole market
4. DTaken the growth and part of the existing sales

1. ASelling only in very large quantities per order
2. BAiming one marketing mix at the whole market
3. CAiming a separate mix at each customer group
4. DAdvertising a product on television alone

1. ABehavioural, by usage
2. BGeographic, by region
3. CDemographic, by age
4. DPsychographic, by values

1. APsychographic
2. BGeographic
3. CDemographic, by age
4. DSeasonal

1. AA ban on advertising the whole range
2. BShorter production runs and more stock lines
3. CA larger total market to sell into
4. DFewer customers reached by each separate message

1. ASetting a minimum price below which it will not sell
2. BComparing the firm's processes with the best rivals
3. CTesting a new product on a sample of customers
4. DMeasuring the output of each worker every hour

1. AIt cannot be applied to a service business at all
2. BIt requires the rival's written permission
3. CIt works only for firms of the same size
4. DIt produces parity rather than an advantage

1. AMarket development
2. BDiversification
3. CMarket penetration
4. DProduct development

1. AProduction of identical items in separate batches
2. BContinuous production of a standard item on a line
3. CProduction of one item at a time to a customer's order
4. DProduction carried out entirely by skilled craftsmen

1. AIt becomes safer but far slower
2. BIt becomes narrower and more repetitive
3. CIt becomes broader and more varied
4. DIt becomes unpaid until the whole line runs

1. AOne absent worker can halt the whole line
2. BLine workers are paid on a piece rate basis
3. CLine workers must supply their own tools
4. DOne absent worker is replaced by a machine

1. AA wider choice of variants than before
2. BA longer guarantee on every product that is sold
3. CLower unit costs, which allow lower prices
4. DA product made to each buyer's own design

1. AThe choice of a variant or a custom order
2. BThe chance to buy the goods on credit
3. CThe right to return goods that are faulty
4. DThe guarantee that goods are safe to use

1. AMethod study and work measurement
2. BJob analysis and job evaluation
3. CQuality control and quality assurance
4. DMarket research and sales forecasting

1. ATo count the number of orders received
2. BTo decide how much each job should be paid
3. CTo find the best way of doing each job
4. DTo choose which designs to put on sale

1. AThe time the fastest worker in the factory takes
2. BThe hours a factory is open on a normal day
3. CThe time allowed before an order is late
4. DThe time a job should take when done properly

1. AAn annual cost of living increase
2. BA monthly salary paid to senior managers
3. CA pension based on final earnings
4. DA piece rate or output bonus scheme

1. AIt supplies the labour times each unit needs
2. BIt supplies the rate of interest on borrowing
3. CIt supplies the prices charged by suppliers
4. DIt supplies the depreciation charged on plant

1. AThe worker may be paid a monthly salary
2. BThe job may be done in more than one shift
3. CThe worker may deliberately work slowly
4. DThe observer must be a qualified engineer

1. ABespoke work where every job differs
2. BCutting panels to the same size all day
3. CPacking a standard product for despatch
4. DSanding and finishing standard frames

1. AOrdering managers to raise their output every quarter
2. BChoosing managers by an aptitude test only
3. CPaying managers a bonus based on years served
4. DAgreeing measurable targets and reviewing results

Answer this when you sit the paper.

1. AThey are set by the manager's own team alone
2. BThey are copied from a rival firm's targets
3. CThey cascade from the corporate objectives
4. DThey are drawn up by the external auditors

1. ASpecific, monetary, agreed, ranked, rated, tested
2. BSimple, modest, agreed, regular, tested
3. CSpecific, measurable, agreed, realistic, timed
4. DStrategic, monetary, annual, rated, timed

1. AAn agreed target needs no later review
2. BAn agreed target is always easier to reach
3. CThe manager can change it at any time
4. DThe manager owns a target they helped set

1. AThe risk of the market changing
2. BThe need to report to any other superior
3. CDoubt about what is expected of them
4. DThe duty to keep within a budget

1. APerformance is judged on years of service
2. BPerformance is judged by the manager alone
3. CPerformance is no longer judged at all
4. DPerformance is judged on agreed results

1. AMeasurable targets cannot easily be written down
2. BMeasurement requires a computer system
3. CThe measurable is favoured over the important
4. DMeasurable targets are always set too low

1. AA result that cannot be measured at all
2. BA result that raises margin and cuts volume
3. CA result that hits the target and hurts margin
4. DA result that meets every one of the corporate objectives

1. AThey cannot ever be written down in measurable terms
2. BThey must be approved by the shareholders
3. CThey are out of date by the middle of the year
4. DThey cannot be agreed with a subordinate

1. AThe interest paid on the whole year's borrowing
2. BThe time spent setting and reviewing targets
3. CThe cost of advertising each vacancy
4. DThe fees paid to the external auditor

1. AA culture where managers are trained to appraise
2. BA firm where objectives are agreed jointly
3. CA blame culture with no real participation
4. DA firm whose objectives are reviewed quarterly

1. ATargets are never written down in advance
2. BTargets are set only once every three years
3. CThe manager does not attend the review
4. DThe cause may lie outside their control

1. ANear a supply of unskilled labour
2. BNear the market it finally sells to
3. CNear its source of raw materials
4. DNear the country's main airport

1. ANear the market it serves
2. BNear a large coal deposit
3. CNear its main raw material
4. DNear the national border

1. ACost savings from the growth of the whole industry
2. BCost savings from a fall in the wage rate
3. CCost savings from buying materials in bulk
4. DCost savings from the growth of one single firm alone

1. AA tax holiday for firms locating there
2. BA rise in the national minimum wage
3. CA new levy on imported machinery
4. DA tighter limit on factory exhaust emissions

1. AOne that leases rather than buys plant
2. BOne free to locate almost anywhere
3. COne that moves premises every year
4. DOne that has no permanent employees

1. AIt applies only to bought in raw materials
2. BIt builds quality in rather than inspecting it out
3. CIt inspects every finished unit just before despatch
4. DIt is carried out by an outside certifying body

1. AA team of inspectors checking the finished goods only
2. BA method of testing a sample of each batch
3. CA standard awarded by an external auditor
4. DA culture making everyone responsible for quality

1. AAn annual inspection of the whole factory
2. BContinuous small improvements by the workforce
3. CA single large investment in brand new machinery
4. DA bonus paid for meeting a quality target

1. AAn international limit on factory gas emissions
2. BAn international standard for quality systems
3. CA measure of a country's rate of inflation
4. DA rule on how accounts must be presented

1. AThe next stage of the process is your customer
2. BEmployees may buy the firm's own goods at cost price
3. CThe firm sells only to its own workforce
4. DManagers rate each department every month

1. AMost defects begin in bought in materials
2. BSuppliers set the price of the finished good
3. CSuppliers are legally liable for all faults
4. DSuppliers carry out the final inspection

1. AWhen the first quality inspector has been appointed to the line
2. BWhen the firm has been certified externally
3. CWhen prevention costs more than the failures it stops
4. DWhen the workforce has all been trained once

1. AInstructions passed all the way down the chain of command
2. BExchange of information outside the formal channels
3. CWritten messages sent between two departments
4. DReports prepared for the board each quarter

1. ANews on it is written down and recorded for later reference
2. BNews on it reaches only senior managers
3. CNews carried on it is always accurate
4. DNews travels far faster than through the hierarchy

1. ARumour fills the gap that has been left
2. BEmployees wait quietly for an announcement
3. CThe formal channels become more trusted
4. DThe change is carried out more quickly

1. AEach department writes a report on the other
2. BThe matter is referred to the managing director
3. CThe problem is raised at the annual meeting
4. DTwo people talk directly instead of writing up

1. AEmployees are required to report to it weekly
2. BEmployees keep a written record of every conversation
3. CEmployees speak only to their own supervisor
4. DEmployees say things they would not put in writing

1. AWhen the message is written and then filed
2. BWhen the message reaches every employee
3. CWhen the message is sent by the fastest available medium
4. DWhen the message received matches the message sent

1. AToo many layers in the hierarchy
2. BToo few departments in the firm
3. CToo many products in the range
4. DToo little stock held in the store

1. AA message that is far too technical to understand
2. BSo many messages that important ones are missed
3. CA message sent to the wrong department
4. DA system that fails when the power is cut

1. AAn item in the monthly newsletter
2. BA face to face meeting in private
3. CA notice pinned to the staff board
4. DA message in a group chat

1. AThe sender avoids putting anything in writing
2. BThe sender can check that it was understood
3. CThe message reaches a larger audience
4. DThe receiver is not able to ask a question

1. ACommunication is required by law in every firm
2. BCommunication costs a firm more than it can ever return
3. CEmployees cannot judge whether it is effective
4. DA clearly explained wrong decision is still wrong

1. AOnly the managers of a business are covered by the rules
2. BThe rules change every month by law
3. CThe rules are written by the supplier
4. DFailure risks illness, prosecution and lost trade

1. AGovernment policy
2. BProduction capacity
3. CImport competition
4. DConsumer income

1. AMachinery must be bought before any order arrives
2. BThe wage bill must be settled a year in advance
3. CAdvertising must be paid for out of share capital
4. DExtra fabric, stock and debtor days must be funded

1. AClothing purchases are easily postponed
2. BClothing is exempt from value added tax
3. CClothing cannot be bought on credit terms
4. DClothing prices are fixed by the government

1. AThey reduce the wages it is allowed to pay
2. BThey set a ceiling on the price it can charge
3. CThey shorten the credit its suppliers give
4. DThey raise the cost of the cloth it buys

1. AIt raises the local cost of the fabric
2. BIt leaves the fabric cost unchanged
3. CIt lowers the local cost of the fabric
4. DIt removes the duty payable on fabric

1. AThe one imposed by government policy
2. BThe one that stops progress before any other
3. CThe one that appears in the business plan
4. DThe one that costs the most to remove

1. AIntroduction, growth, decline, maturity
2. BGrowth, introduction, maturity, decline
3. CIntroduction, growth, maturity, decline
4. DIntroduction, maturity, growth, decline

1. AAction to prolong the maturity of a product
2. BAction to lengthen the credit given to buyers
3. CAction to shorten the development period
4. DAction to widen the firm's factory space

1. ADecline
2. BIntroduction
3. CMaturity
4. DGrowth

1. ANew products cannot be launched alone
2. BA mature line's cash funds the next launch
3. CBuyers refuse to purchase a single product
4. DThe law requires a minimum product range

1. AA stage is only recognised after the event
2. BIt cannot be drawn for a fashion garment
3. CIt ignores the price charged for the product
4. DIt applies only to manufactured products

1. AExtending a product's life with a new variant
2. BCharging a skimming price at the launch
3. CDeciding a line is declining and cutting its support
4. DLaunching a replacement product too early

1. AThe number of layers between the board and the floor
2. BThe number of subordinates reporting to one superior
3. CThe number of departments in the organisation
4. DThe number of decisions a manager may take

1. AA structure with no chain of command
2. BA flat structure with few layers
3. CA tall structure with many layers
4. DA matrix structure with two bosses

1. AThe list of suppliers a firm buys from
2. BThe line of authority from the top downwards
3. CThe sequence of steps in a disciplinary case
4. DThe order in which materials pass through a plant

1. AThe right to instruct other staff
2. BResponsibility for the outcome
3. CThe duty to carry out the task
4. DAuthority to spend the budget

1. AStaff specialists report to no one at all
2. BStaff specialists command rather than advise
3. CStaff specialists work only in production
4. DStaff specialists advise rather than command

1. ATo test an experienced worker's skills again
2. BTo prepare an employee for early retirement
3. CTo assess whether a candidate should be hired
4. DTo settle a new employee into the job quickly

1. AIt is given by a colleague at the workbench
2. BIt takes place away from the normal workplace
3. CIt is paid for entirely by the employee
4. DIt is provided only to senior managers

1. ATrained employees may be paid less
2. BTraining shortens the contract of employment
3. CTrained employees are more likely to stay
4. DTraining removes the need to advertise

1. AThe output lost while they are away
2. BThe fee charged for the course itself
3. CThe cost of printing the materials
4. DThe travel to and from the venue

1. AA rival hires the employee the firm has trained
2. BA manager attends a course meant for juniors
3. CA firm sends staff on a course it cannot afford
4. DA firm trains staff it intends to make redundant

1. AWhen the course is held away from the workplace
2. BWhen the real cause is poor pay or equipment
3. CWhen the employee already holds a qualification
4. DWhen the employee has been recently recruited

1. AA second course on the same subject
2. BEvaluation of whether the need was met
3. CA change to the employee's job title
4. DAn immediate rise in the employee's pay

1. AIt expands the firm's own operations
2. BIt is financed only by a share issue
3. CIt is available only to public companies
4. DIt always takes place in a new country

1. AMerging with a supplier of the firm's raw materials
2. BMerging with the retailer that sells the firm's goods
3. CMerging with a firm at the same stage of the industry
4. DMerging with a firm in a completely different industry

1. AConglomerate
2. BForward vertical
3. CBackward vertical
4. DHorizontal

1. AA merger between a firm and its main supplier
2. BA merger between firms in unrelated industries
3. CA merger between two direct competitors
4. DA merger between a firm and its distributor

1. AFranchisees are paid a salary by the owner
2. BFranchisees supply the goods to be sold
3. CFranchisees take over the brand entirely
4. DFranchisees provide the capital for each outlet

1. AEmployee numbers change only once a year
2. BEmployees cannot be counted across two sites
3. CA capital intensive firm employs very few people
4. DEmployee numbers are never published anywhere

1. AIt falls whenever the firm raises its prices
2. BIt is not recorded in the annual accounts
3. CIt cannot be measured for a public company
4. DIt takes no account of the margin earned

1. ACapital employed is confidential in every company
2. BAsset values depend on the accounting policy used
3. CCapital employed changes with the share price
4. DCapital employed cannot be measured in money

1. AThe result depends on the share price that day
2. BThe result depends on the accounting year used
3. CThe result depends on the number of employees
4. DThe result depends on how the market is defined

1. AIt is published only once every five years
2. BIt cannot be compared between two firms
3. CIt exists only for quoted public companies
4. DIt excludes the value of any brand names

1. AIt measures performance rather than scale
2. BIt is fixed by the industry the firm is in
3. CIt is never disclosed in published accounts
4. DIt cannot be calculated for a private firm

1. AOn two or three criteria within one industry
2. BOn the number of countries each trades in
3. COn the age of each business in years
4. DOn the single criterion of turnover alone

1. AIts stock has risen above last year's
2. BIt cannot meet its debts as they fall due
3. CIt has made a loss in the trading year
4. DIts sales have fallen below last year's

1. ASelling the debtors to a finance house for cash
2. BDelaying payment to the firm's own suppliers
3. CSelling fixed assets and leasing them back
4. DBorrowing against the value of the firm's stock

1. AA longer credit period for every buyer
2. BA larger order quantity for each customer
3. CA discount for settlement within ten days
4. DA rise in the price charged to all buyers

1. ASelling an asset and renting it back for use
2. BBuying an asset and letting it to another firm
3. CSelling stock at a discount to clear it
4. DSelling a subsidiary to its own managers

1. AStock is cash sitting idle in the business
2. BStock is never recorded in the accounts
3. CStock must be paid for in the next year
4. DStock cannot be insured against loss

1. AA legal requirement to publish the delay
2. BInterest charged at the bank overdraft rate
3. CLost discounts and a strained relationship
4. DAn immediate rise in the price of stock

1. AA bank overdraft
2. BA ten year mortgage
3. CA debenture repayable in 2040
4. DAn issue of ordinary shares

1. AA cut in the price of every product
2. BA longer credit period from customers
3. CLong term capital rather than an overdraft
4. DA larger overdraft repayable on demand

1. APromotion cannot be charged against tax
2. BPromotion is paid now and credit sales later
3. CExtra sales are always made at a loss
4. DCustomers pay cash before goods are made

1. ASelling debtors to a factoring company
2. BPreparing and monitoring a cash flow forecast
3. CClearing slow moving stock at a discount
4. DDelaying payment to the firm's suppliers

1. ACash is reported only once every five years
2. BProfit falls as soon as a customer pays late
3. CProfit is always equal to the cash balance
4. DCutting price raises cash and destroys profit

1. AThe tax charged on profit is reduced
2. BThe firm's reported profit rises at once
3. CThe firm's fixed costs are lowered
4. DCash is retained in the business immediately

1. AAn event the firm cannot control
2. BThe probability of an outcome
3. CThe money value of an outcome
4. DA choice the firm itself makes

1. A0
2. B1
3. C2
4. D4

Answer this when you sit the paper.

1. AFrom the largest outcome to the smallest
2. BFrom the top down through the branches
3. CFrom left to right, following the sequence
4. DFrom right to left, rolling back the values

1. AThe one with the higher probability of success
2. BThe one with the largest single possible payout
3. CThe one with the lower initial cost to start
4. DThe one with the higher expected value net of its cost

1. AMoney values ignore the cost of borrowing
2. BThe calculation cannot be done by hand
3. CProbabilities cannot be estimated at all
4. DAn average is not what one event delivers

1. AThey change the money values attached
2. BThey must always add up to more than 1
3. CThey can only be supplied by a bank
4. DThey are often subjective estimates

1. ATheir years of experience
2. BTheir level of training
3. CTheir span of control
4. DTheir attitude to risk

1. AThe firm's reputation with a repeat client
2. BThe cost of hiring plant for the contract
3. CThe penalty payable for late completion
4. DThe price the firm intends to tender at

1. AIt guarantees the forecast cash flows are correct
2. BIt converts the expected value into a percentage
3. CIt removes the need to estimate any probability
4. DIt shows how far an input can move before the answer does

1. AWhere the outcomes cannot be valued in money
2. BWhere no historical records exist at all
3. CWhere its own records supply the probabilities
4. DWhere a rival's behaviour must be guessed

1. AThe cheapest option is identified at once
2. BEvery option and chance event is made explicit
3. CThe firm's cost of capital is calculated
4. DThe need for management judgement disappears