Business Studies Paper 2 June 2023

1. AProductivity
2. BTotal revenue
3. CMarket share
4. DGross profit

Answer this when you sit the paper.

Answer this when you sit the paper.

Answer this when you sit the paper.

1. ARadah, because it has the highest probability of success at 0.7
2. BRockset, because it gives the highest expected net value of the three
3. CRubic, because its total pay offs across both outcomes are the largest
4. DNone of the three, because all carry some probability of failure

1. ADelegating more decision making authority to employees
2. BReducing the workforce to cut the wage bill
3. CInvesting in new capital-intensive machinery only
4. DRunning a one-off bonus scheme tied to this year's output

Answer this when you sit the paper.

1. AA social constraint, arising from different tastes and culture
2. BA legal constraint, since packaging must be licensed abroad
3. CA financial constraint, since new packaging raises costs alone
4. DA technological constraint, since printing equipment must change

1. AAn informal constraint, since it is set by rival businesses
2. BA voluntary constraint, since firms may choose to ignore it
3. CA legal constraint, imposed by the host country's own laws
4. DA cultural constraint, since tariffs reflect local customs

1. AA formal group
2. BAn informal group
3. CA strategic business unit
4. DA shareholder committee

1. AIt guarantees that staff always support management decisions
2. BIt speeds up communication and can raise staff morale
3. CIt removes the need for the business to set formal objectives
4. DIt replaces the need for a formal chain of command entirely

1. AA general daily newspaper's front page display advert
2. BWord of mouth among existing junior staff only
3. CA specialist trade publication or professional website
4. DA local community noticeboard, for its very low cost

1. AThe urgency of needing to fill the post that same day
2. BThe cost of the medium relative to the recruitment budget
3. CA legal requirement to use only free advertising
4. DThe firm's wish to project a prestigious corporate image

Answer this when you sit the paper.

1. AIt removes the need for the firm to carry out any market research
2. BIt allows products and marketing to be tailored to each group, raising sales
3. CIt guarantees the firm a monopoly over each segment it targets
4. DIt eliminates the production costs of running more than one range

1. AThe firm is legally barred from advertising to more than one segment
2. BSegmentation always raises the selling price in every segment equally
3. CEach segment may be too small to produce and market profitably
4. DSegmentation removes the firm's ability to build any brand loyalty

1. AHigher productivity and lower absenteeism and labour turnover
2. BLower productivity, because motivated staff work more carefully
3. CA guaranteed increase in the market price of the firm's shares
4. DAutomatic exemption from statutory minimum wage requirements

1. AThe corporate tax rate the business is charged
2. BThe interest rate charged on the business's bank loans
3. CThe cost of supervision, since output must be checked more closely
4. DThe cost of raw materials purchased from suppliers

1. ARequiring farmers to sell only to a single foreign buyer
2. BRemoving all extension and research support to farmers
3. CBanning the export of any tobacco grown in the country
4. DSetting a guaranteed floor price at the tobacco auction floors

1. AIt automatically raises the world price of tobacco leaf
2. BIt is illegal under regional trade agreements in every case
3. CIt removes the farmer's incentive to grow tobacco at all
4. DIt can distort the market and strain government finances

1. AIt exempts the dealer from consumer protection legislation
2. BIt reaches a wide audience cheaply and is available around the clock
3. CIt removes the need for the dealer to hold any physical stock
4. DIt guarantees every visitor to the website buys a car that day

1. AIt replaces the need for the dealer to price cars competitively
2. BIt lets the dealer target follow-up marketing at that visitor's interests
3. CIt automatically completes the sale without the visitor's consent
4. DIt removes the legal requirement to disclose a vehicle's history

Answer this when you sit the paper.

1. AA perceptual barrier, caused by the receiver's own bias
2. BAn organisational barrier, caused by too many layers of hierarchy
3. CA physical barrier, caused by noise on the shop floor
4. DA semantic barrier, caused by language the receiver cannot decode

1. AIt eliminates the need to forecast customer demand
2. BIt removes the need for any relationship with suppliers
3. CIt guarantees stock never runs out under any conditions
4. DIt cuts the cost of holding and storing large stocks

1. ATo comply with a legal minimum stock-holding requirement
2. BTo guard against running out of stock during unexpected demand or delivery delays
3. CTo avoid ever having to reorder stock from its suppliers again
4. DTo reduce the total amount of capital tied up in stock to zero

1. AEconomic Order Quantity modelling
2. BPerpetual inventory counting
3. CABC (Pareto) stock classification
4. DJust-In-Time stock control

1. AThe firm is forced to lower the price of the goods it does hold
2. BThe firm's storage and insurance costs rise without limit
3. CThe firm risks a stock-out and lost sales if demand rises unexpectedly
4. DThe firm's stock becomes obsolete more quickly than before

1. AThe money market, which deals in short-term finance
2. BThe commodity market only
3. CThe capital market, which deals in long-term finance
4. DThe foreign exchange market only

1. AThe interbank lending market
2. BThe treasury bill market
3. CThe capital market
4. DThe money market

1. ATo guarantee every business in the economy an equal profit each year
2. BTo correct market failure and provide public goods and welfare the free market under-supplies
3. CBecause private businesses are legally forbidden from operating in any sector
4. DBecause a mixed economy has no role at all for market prices

1. AIt must be repaid to shareholders within one year
2. BIt is available even to a business that has never traded
3. CIt is always large enough to fund any factory, however big
4. DIt carries no interest cost and does not dilute ownership

1. AThe new shares carry a fixed obligatory interest payment
2. BThe company must repay the share capital within five years
3. CThe company loses its limited liability status immediately
4. DOwnership and control are diluted among the new shareholders

1. AInterest and capital repayments falling due on schedule
2. BA share of the factory's profit paid to the bank as a dividend
3. CThe bank taking a seat on the company's board of directors
4. DThe loan being automatically written off after ten years

1. AIt avoids a large upfront capital outlay while still getting to use the machinery
2. BIt gives the company outright ownership of the machinery from day one
3. CIt is always cheaper in total than buying the machinery outright
4. DIt removes the company's obligation to insure the machinery

1. AA cost the business is legally required to disclose as a fine
2. BA form of debt finance secured against local infrastructure
3. CA statutory tax obligation it cannot avoid
4. DCorporate social responsibility toward its community

1. ASet prices without regard to its competitors
2. BAvoid paying any corporate tax on its profits
3. CIgnore all consumer protection legislation
4. DAttract and retain staff and build customer loyalty

Answer this when you sit the paper.

1. ARatios are set by law and cannot differ between one year and the next
2. BThe ratios are based on historic figures and may not reflect current trading conditions
3. CRatio analysis cannot be calculated for a wholesaling business at all
4. DGross profit margin is not a ratio and cannot be compared over time

1. AA well chosen sample is far cheaper and quicker than a full census while still being representative
2. BSampling is a legal requirement for every market research exercise
3. CA sample always gives a more accurate result than surveying everyone
4. DSampling removes the need for the firm to analyse the data collected

1. AThe sample can no longer be used for any research purpose
2. BThe sample becomes too large to analyse with normal methods
3. CThe sample is biased and may not represent the whole target market
4. DThe sample automatically becomes a full census instead

1. ATo remove wasted movement and time so each task is completed more efficiently
2. BTo replace the need for any quality control on the finished furniture
3. CTo fix the wage rate paid to each grade of worker permanently
4. DTo reduce the number of items of furniture the firm is legally allowed to sell

1. AEffectiveness is unaffected, since only efficiency depends on staff training
2. BThe firm becomes unable to meet its production targets at all
3. CDecisions are made closer to the problem and more quickly, helping the firm meet its objectives
4. DEffectiveness falls because supervisors are not legally allowed to make decisions