Business Studies Paper 2 June 2019

1. AAvoiding any form of business growth
2. BMinimising customer satisfaction levels
3. CProfit maximisation
4. DEliminating all quality control checks

Answer this when you sit the paper.

1. AIt transfers the industry's existing debts onto the passengers who use the service
2. BIt removes the government's power to set safety standards for vehicles in the industry
3. CIt allows the government to fix the wages paid to every transport worker in the country
4. DIt reduces public sector borrowing because the state stops funding a loss making service

1. AOperators compete for custom, so services become more efficient and more responsive
2. BThe ministry sets each fare, so passengers pay the same amount on every route
3. CThe number of operators is capped, so each one keeps a protected route of its own
4. DThe state keeps a majority shareholding, so passengers share in the operators' profits

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AIt is quicker and cheaper to obtain since no new data collection is required
2. BIt is already published and readily available, having been collected by someone else for another purpose
3. CIt is collected first-hand for a specific purpose and is exclusive to the business
4. DIt is historic information that may no longer be up to date by the time it is used

Answer this when you sit the paper.

1. AIt allows the supplier to allocate resources more efficiently by targeting the specific requirements of each school
2. BIt eliminates the need for the supplier to conduct any market research before selling
3. CIt removes the need for the supplier to produce more than one uniform design for its customers
4. DIt guarantees the supplier a larger market share than every one of its competitors

1. ALeadership focuses on maintaining stability, while management focuses on creating change within the organisation
2. BLeadership minimises risk-taking, while management encourages workers to pursue challenging goals
3. CLeadership controls people closely, while management trusts people to work independently on tasks
4. DLeadership is based on personal power and influence, while management is based on positional authority

1. ATo reduce subordinates' motivation by deliberately giving them no meaningful responsibility
2. BTo ensure that decisions are always made without seeking any subordinate input at all
3. CTo relieve pressure on the manager's own workload while preparing subordinates for future responsibility
4. DTo avoid ever being held personally accountable for the outcome of any decision made

1. AIt guarantees that no employee will ever choose to leave the organisation once trained
2. BIt reduces the number of mistakes made by workers, lowering rework costs
3. CIt removes the need for the organisation to monitor the quality of its products
4. DIt eliminates every cost associated with running the business on a daily basis

1. AIt always shows the current market value of every asset owned by the business
2. BIt records the exact amount of cash flowing in and out of the business each day
3. CIt is a snapshot that shows a business's position only at one point in time
4. DIt cannot be affected in any way by the choice of depreciation method used

1. AExtending the period allowed for debtors to pay their debts
2. BIncreasing the level of idle stock held in the warehouse
3. CReducing the discounts offered for prompt payment
4. DLengthening the period allowed for creditors to be paid

1. ALenders gain voting rights at the company's annual general meeting
2. BLoan repayments never increase the business's liabilities
3. COwnership of the business must be shared with the lender
4. DInterest payments are tax deductible, unlike dividend payments

1. ATo check the bank's compliance with health and safety regulations at its branches
2. BTo determine the size of the bank's advertising budget for the coming financial year
3. CTo assess the bank's liquidity and solvency, and its ability to pay dividends
4. DTo assess the job satisfaction levels reported by the bank's own employees

Answer this when you sit the paper.

1. AThey can store very large volumes of financial data over many years
2. BThey are vulnerable to viruses and hacking, which can result in the loss of crucial data
3. CThey make it easy to generate detailed reports using simple typed commands
4. DThey allow fast manipulation and processing of large volumes of accounting data

1. AThey lay out clear objectives and provide a sense of direction for the business
2. BThey guarantee that every department will always meet its assigned targets
3. CThey remove the need for management to ever review departmental performance
4. DThey eliminate the need to allocate scarce resources between departments

1. ANearness to sources of raw materials needed for production
2. BThe unavailability of skilled labour anywhere within the surrounding area
3. CPoor accessibility of the area for transport and distribution of goods
4. DThe complete absence of any government incentives for businesses locating there

1. APurchasing additional factory space without increasing the level of output produced
2. BIncreasing sales so that a greater proportion of its production capacity is being used
3. CLeaving idle machinery unused in order to preserve its future resale value
4. DReducing the number of customer orders it is willing to accept

1. AIt guarantees increased profits for the business regardless of how it is implemented
2. BIt removes the need for management support or commitment during implementation
3. CIt improves the flow of work and the utilisation of space, equipment, and materials
4. DIt completely eliminates employee fatigue and exhaustion during working hours

1. A$8 million
2. B$19 million
3. C$32 million
4. D$13 million

Answer this when you sit the paper.

1. AThey are moved onto shorter contracts as each piece of equipment is installed
2. BThey pay for the new equipment through a deduction from their monthly wages
3. CThey lose the right to be consulted about the way their own jobs are organised
4. DThey are retrained on the new equipment, which upgrades their skills and status

1. ASome workers become redundant because the machines do the work they once did
2. BWorkers' output per hour falls because the new machines run more slowly
3. CWorkers repay the cost of their retraining out of their future bonus payments
4. DWorkers are barred from applying for the technical posts the change creates

1. AOutput per worker rises, so a larger productivity bonus can be earned
2. BThe price of each package rises, so the bonus is calculated on revenue
3. CThe firm cuts the hours each worker may work, so the bonus is shared out
4. DOvertime rates are withdrawn, so the bonus replaces the pay that is lost

1. AIncomes decide the rate of company tax the firm will pay on the product's profit
2. BIncomes set the highest wage the firm may pay to its own production workers
3. CIncomes fix the level of import duty charged on the firm's imported materials
4. DHigher incomes make customers more able and more willing to buy the new product

1. AThe price should be set from the firm's own costs, ignoring what rivals charge
2. BThe price must match the cheapest substitute exactly for the product to sell
3. CThe price must be competitive, because buyers can switch easily to a rival product
4. DThe price can be set well above rivals, because buyers rarely compare at a launch

1. ADemand responds weakly to a change in price, as customers must buy it anyway
2. BDemand responds strongly to a change in price, as customers can do without it
3. CDemand stays the same at whatever price the firm decides to charge for it
4. DDemand is decided by the firm's production costs rather than by its price

1. AIts costs are lower, so it can set a lower introductory price to attract buyers
2. BIts costs are higher, so it must set a higher introductory price than planned
3. CIts price is fixed by the ministry that pays the subsidy to the industry
4. DIts price is unaffected, because subsidies apply to exported goods alone

Answer this when you sit the paper.

1. AThe firm has to raise the price of its packaging to cover its safety spending
2. BProtective clothing, guards and safety drills all add to the firm's operating costs
3. CThe firm loses the right to insure its premises against fire and flood damage
4. DA fee is payable to the government for each accident the firm manages to avoid

1. ATax falls because safety spending is refunded in full by the revenue authority
2. BFewer injuries mean less production time lost and fewer compensation claims
3. CMachinery lasts longer because safety rules limit the hours it may be run
4. DRaw material costs fall because safety rules require smaller production batches

1. AThe difference between the floor and their pay is met by the government
2. BTheir pay cannot fall below the set floor, so they can meet basic living costs
3. CTheir pay is capped at the set figure, which the firm may not exceed
4. DThe floor applies to salaried managers but not to production workers

1. AThe wage floor is met by the government whenever a firm's sales are falling
2. BThe wage floor may be ignored until the firm's trading position recovers fully
3. CThe wage floor still has to be met from smaller revenues, straining cash flow
4. DThe wage floor falls automatically in line with the firm's own sales revenue

1. AEvery employee in a department must be paid the same wage whatever the role
2. BStaff are chosen and paid on ability, which widens the pool of talent available
3. CPreference must be given to applicants who already live near the firm's premises
4. DAn equal number of men and women must be employed in every department

Answer this when you sit the paper.

Answer this when you sit the paper.

Answer this when you sit the paper.

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AThe business's operating costs increased at a faster rate than its revenue
2. BTotal market sales grew at a faster rate than the business's own sales
3. CThe business's own sales must actually have fallen during the course of the year
4. DThe overall market must have shrunk significantly in size during the year

1. AUnlimited liability protects the owner's personal assets from the business's debts
2. BQuicker decision-making since the owner does not need to consult other owners
3. CGreater access to capital markets than businesses that are incorporated
4. DManagement responsibility is shared equally among several co-owners of the business

1. AOutput cannot be measured for a firm that sells a physical product to buyers
2. BOutput appears in the balance sheet rather than in the income statement
3. COutput changes when a firm alters the price that it charges its customers
4. DTwo firms with equal output may employ very different amounts of capital

1. AThe proportion of the business's own sales that go to its largest customer
2. BThe proportion of total sales in the market that the business itself makes
3. CThe proportion of the business's shares that are held by its own directors
4. DThe proportion of the business's revenue left after all its costs are paid

1. AIt needs a quoted share price, which an unlisted business does not have
2. BIt counts the number of employees rather than the value of the business
3. CIt is recalculated by the revenue authority once every ten trading years
4. DIt is published in a currency that most businesses do not trade in daily

1. AProfit is measured before any revenue from the year's sales has been received
2. BA small firm selling high value goods can earn more than a much larger one
3. CProfit is the same figure as the capital the owners have invested in the firm
4. DProfit is not recorded by a business that trades as a private limited company

Answer this when you sit the paper.

1. AA capital intensive firm looks small because machines do most of its work
2. BThe number employed is fixed by law according to the firm's legal status
3. CThe number employed can be read from the firm's own cash flow statement
4. DThe count includes a firm's suppliers as well as the people it pays directly

1. AEvery criterion produces the same ranking, so an extra one confirms the first
2. BOne criterion is enough, because size is properly measured by turnover alone
3. CCriteria may be combined when both firms trade within the same country
4. DEach criterion favours a different kind of firm, so several give a fuller view

1. AThey are primarily driven by the goal of maximising profit for private shareholders
2. BThey rely exclusively on selling shares to members of the public for capital
3. CSurpluses generated belong to the nation, benefiting the public rather than private shareholders
4. DThey compete freely against private firms without receiving any government support

1. AIt creates a profit motive that encourages greater efficiency in the business
2. BIt guarantees that public goods will continue to be produced at the same level
3. CIt removes the government's need for tax revenue entirely
4. DIt always results in lower prices for every consumer regardless of market conditions

1. APaying employees performance-related bonuses tied to individual output
2. BIntroducing a profit-sharing scheme that rewards staff financially
3. COffering employees opportunities for promotion and career development
4. DIncreasing employees' hourly wage rates across the whole workforce

1. AIt speeds up decisions by eliminating several layers of management entirely
2. BIt gives every employee within the organisation equal decision-making authority
3. CIt shows a clear chain of command from senior management down to junior staff
4. DIt removes the need for the organisation to define clear job roles

1. ADecisions can be made faster at the local level, closer to where they are needed
2. BIt always reduces the business's overall operating costs across every branch
3. CIt guarantees complete consistency in the decisions made across all branches
4. DIt removes the need for junior managers to ever develop decision-making skills

1. ATo standardise its product so that it is identical for every single customer
2. BTo increase its production costs deliberately across all of its product lines
3. CTo remove the need for the manufacturer to conduct any further market research
4. DTo tailor its marketing mix to the different needs of each customer group

Answer this when you sit the paper.

1. ATo replace products that have entered the decline stage of their product life cycle
2. BTo reduce the overall range of products made available to consumers
3. CTo avoid having to compete directly with rival detergent brands
4. DTo remove the need for any further product development in future

Answer this when you sit the paper.

1. AIt guarantees the business will face no competition
2. BIt removes the need for any future quality control checks
3. CIt always eliminates the organisation's production costs entirely
4. DIt builds customer loyalty and encourages repeat purchases

Answer this when you sit the paper.

1. AExpanding or growing the business
2. BDistributing all of its profits as dividends
3. CReducing its number of product lines
4. DDeliberately shrinking its market share

1. AIncreasing the level of idle stock held unnecessarily in its warehouse
2. BDelaying payment to its own creditors for an indefinite period of time
3. CReducing the average period taken by debtors to pay what they owe
4. DExtending the length of time it typically takes to sell off its stock

Answer this when you sit the paper.

1. AIt guarantees that the business will always be profitable in every period
2. BIt automatically accounts for economies of scale at every level of output
3. CIt removes the need for the business to monitor its costs going forward
4. DIt helps identify the minimum level of sales needed to avoid making a loss