Business Studies Paper 2 November 2010

1. AThe speed at which stock is sold and replaced
2. BThe number of hours each employee works in a week
3. CThe rate at which staff leave and are replaced
4. DThe share of the wage bill paid to managers

1. ATotal wages divided by the number employed
2. BLeavers divided by average number employed
3. CAbsent days divided by days available
4. DLeavers divided by the number recruited

1. A1 year and 4 months
2. B2 years exactly
3. C1 year and 8 months
4. D2 years and 8 months

Answer this when you sit the paper.

1. AIt removes the need for a discount rate
2. BIt repays the outlay within a single year
3. CIt guarantees the forecast cash flows
4. DIt earns more than the capital used costs

1. AA short payback removes the need to discount
2. BMoney returned early can fund the next need
3. CThe cost of capital falls as payback shortens
4. DA short payback raises the project's profit

1. AIts unit costs must be rising
2. BIts total revenue is falling
3. CIts market share is rising
4. DIts market share is falling

1. AIt uses too many channels
2. BIt runs downwards only
3. CIt bypasses the supervisors
4. DIt is too heavily written

1. AA memorandum from the human resources director
2. BA notice board in the canteen
3. CA quality circle of workers
4. DA printed staff handbook

1. AFewer supervisors are then needed
2. BThe target is owned and better informed
3. CThe target need not be reviewed again later
4. DThe target can be set much higher

1. AThe message reaches too many people
2. BThe message is delayed and distorted
3. CThe message must always be in writing
4. DThe message loses its formal authority

1. AA poorly worded instruction
2. BDifferences in first language
3. CMachine noise in the workshop
4. DAn autocratic supervisor

1. AOutput targets can be raised each year
2. BWorkers feel heard and stay longer
3. CSupervisors can be replaced by notices
4. DWorkers are paid more for the same work

1. AFixed assets less long term loans
2. BCurrent assets less current liabilities
3. CShare capital plus retained profit
4. DTotal assets less all outside liabilities

1. ACurrent assets over current liabilities
2. BNet profit over current liabilities
3. CCurrent assets over total liabilities
4. DCurrent assets less stock over creditors

1. AStock is charged against profit already
2. BStock is not owned until it is paid for
3. CStock is the hardest of them to turn into cash
4. DStock is valued at its selling price

1. AStock is moving more slowly than before
2. BCash earned is not yet in the business
3. CSales made on credit have fallen away
4. DSuppliers are being paid far too early

1. AStock days plus debtor days less creditor days
2. BStock days plus creditor days less debtor days
3. CStock days plus debtor days plus creditor days
4. DDebtor days plus creditor days less stock days

1. ALiquidity is not a financial matter
2. BThe date can be chosen to flatter
3. CRatios cannot be compared at all
4. DThe figures are not audited

1. AStock is sold off below its cost
2. BTrade debts are sold for cash at once
3. CSuppliers agree to wait far longer
4. DAn overdraft limit is raised by the bank

1. AThe firm loses ownership of its stock
2. BInterest is charged on every invoice
3. CThe debtors must be told to pay twice
4. DA fee is taken out of the debt

1. ASells stock and leases warehouse space
2. BRents an asset it may buy later
3. CSells an asset and buys a newer one
4. DSells an asset and rents it back

1. AInterest earned on its bank balance
2. BThe right to buy on credit at all
3. CIts stock and its work in progress
4. DSettlement discounts and goodwill

1. AA stockout stops production
2. BStorage costs will rise sharply
3. CSuppliers will refuse to deliver
4. DThe stock will become obsolete

1. AA short seasonal one
2. BA permanent structural one
3. COne caused by trading at a loss
4. DOne caused by heavy fixed assets

1. ATaking a larger overdraft
2. BRaising more long term finance
3. CDelaying supplier payments
4. DChasing overdue debtors

1. ACash is taxed each year
2. BIdle cash earns nothing
3. CCash loses value on the balance sheet
4. DCreditors demand faster payment

1. ATotal output of the factory
2. BHours worked per unit made
3. COutput per worker per period
4. DWages paid for each unit sold

1. ASecurity of long term employment
2. BMoney paid for output produced
3. CResponsibility for a whole task
4. DRecognition given by the group

1. AWages become impossible to budget
2. BSpeed is gained and quality lost
3. CWorkers refuse to accept the scheme
4. DOutput falls below the old level

1. AAttention paid to the working group
2. BHigher piece rates for each unit
3. CBrighter lighting in the workshop
4. DCloser supervision of every operative

1. AA need once met no longer motivates anyone
2. BHigher pay is taxed at a higher rate
3. CPay is not a need in the hierarchy
4. DWorkers compare pay with each other

1. ASelf actualisation
2. BSocial needs
3. CPhysiological needs
4. DEsteem needs

1. ARecognition
2. BCompany policy
3. CResponsibility
4. DAchievement

1. AAdvancement
2. BStyle of supervision
3. CJob security
4. DWorking conditions

1. AA complete task with authority
2. BA bonus tied to weekly output
3. CMore tasks at the same level
4. DA move between jobs each week or two

1. ASupervise and control them closely
2. BDelegate the difficult decisions to them
3. CPay them on a results basis only
4. DEnrich the work they are given

1. AThe reward is set by the trade union
2. BThe reward is paid in cash monthly
3. CThe reward is one the worker values
4. DThe reward is the same for everyone

1. AWorkers take on more of one job
2. BWorkers are paid for each unit made
3. CWorkers move between whole jobs
4. DWorkers gain authority over a task

1. AA legal ban on new equipment
2. BA fall in the firm's fixed costs
3. CResistance from workers fearing jobs
4. DAn immediate rise in the wage rate paid

1. AThe laws a business must obey
2. BThe image a business projects to buyers
3. CThe profit a business aims to make
4. DMoral principles applied to decisions

1. ASales growth targets
2. BProfit satisficing
3. CCost minimisation
4. DRevenue maximisation

1. AWidening the product range
2. BRaising the dividend paid per share
3. CShortening the working week
4. DCutting waste and packaging used

1. AAdvertising must be in writing
2. BPrices must be set below cost
3. CClaims made about a product must be truthful
4. DProducts must be sold locally

1. AIt exempts the firm from taxation
2. BIt lowers the cost of raw materials
3. CIt removes the need to advertise
4. DIt differentiates and retains custom

1. AObjectives are published to customers
2. BObjectives are reviewed by an auditor
3. CObjectives are agreed and cascaded down
4. DObjectives are set once by the shareholders

1. ACopied from the previous year
2. BImposed by the board of directors
3. CJointly agreed with the superior
4. DChosen freely by the manager

1. APerformance is judged on results
2. BPersonality is measured properly
3. CManagers appraise themselves
4. DAppraisal is then done yearly

1. AMeetings with their subordinates
2. BResults that cannot be measured
3. CSpending within their own budget
4. DTargets set for the whole year

1. AManagers avoid their own budgets
2. BManagers negotiate soft targets
3. CManagers work only for the money
4. DManagers refuse to be appraised

1. AOne with a participative culture
2. BOne changing fast and unpredictably
3. COne with capable senior managers
4. DOne with measurable departmental output

1. AA target is set higher than last year
2. BA target is agreed without discussion
3. CA target is reviewed by the finance department
4. DA target is missed through another's fault

1. AIn a small owner run firm
2. BIn a growing manufacturer
3. CIn a divisional structure
4. DIn a large multi site firm

1. AOne firm closing a rival down
2. BTwo firms joining by agreement
3. CTwo firms agreeing to fix prices
4. DOne firm buying out another

1. AConglomerate
2. BHorizontal
3. CForward vertical
4. DBackward vertical

1. ACheaper shop refurbishment
2. BLonger credit from the banks
3. CGreater buying power over suppliers
4. DLower rates of company tax

1. AIt needs approval from every supplier
2. BIt raises the wage bill of the firms
3. CIt ends the smaller firm's brand name
4. DIt reduces competition in the market

1. AIncompatible cultures
2. BFalling raw material prices
3. CRising interest rates
4. DA weak advertising budget

1. ABoth stores are refurbished
2. BThe chains keep separate names
3. CPrices are cut in those towns
4. DSome stores are closed

1. AConsumer prices are held down
2. BUnemployment benefit payments are cut
3. CMore corporation tax is collected
4. DInterest rates can be lowered

1. AOne firm will import fewer goods
2. BOne firm will pay less rent
3. COne firm employs more managers
4. DOne dominant firm may raise prices

1. ABy taxing the merged firm at a higher rate
2. BBy setting the prices the firm may charge
3. CBy limiting the number of staff cut
4. DBy requiring overlapping stores to be sold

1. ATrainee managers newly hired
2. BDelivery drivers on contract
3. CDuplicated head office staff
4. DShelf fillers in busy stores

1. AAn immediate cut in their workload
2. BWider promotion within a bigger firm
3. CA shorter journey to their workplace
4. DA guaranteed rise in the hourly rate

1. AThe competition left in the market
2. BThe cost of the merger to shareholders
3. CThe number of own brand lines kept
4. DThe size of the merged firm's profit

1. APrices are raised on every item
2. BSuppliers refuse to deal with it
3. CStore opening hours are shortened
4. DDuplicate own brand lines are dropped

1. ACut the wage rate paid to designers
2. BSell the design to another producer
3. CTest a design before cutting material
4. DMake the product without any tooling

1. ALower spending on maintenance
2. BA wider range of products made each day
3. CLess need for electric power
4. DConsistent output at a steady rate

1. AZero based budgeting
2. BJust in time supply
3. CCost plus pricing
4. DBatch production

1. ASuppliers deliver more quickly
2. BPrices can be changed each day
3. CCustomers can pay without cash
4. DRetailers can borrow more cheaply

1. AIt removes the need for stock
2. BIt replaces its own workforce
3. CIt sells well beyond its own town
4. DIt ends the need to price goods

1. ASchool leavers enter the market
2. BFirms close during a recession
3. CMachines replace unskilled labour
4. DWorkers leave for better paid jobs

1. AThey rise as skills must be renewed
2. BThey are met by the equipment seller
3. CThey fall as machines need no skill
4. DThey stay the same for several years

1. AIt must be bought for cash only
2. BIt cannot be resold second hand
3. CIt dates before it is paid for
4. DIt cannot be insured at all

1. AAn unreliable electricity supply
2. BA ban on importing used machines
3. CA shortage of unskilled workers
4. DA high rate of company taxation

1. AMachines and spares are imported
2. BExport orders must be paid in kind
3. CWages must be paid in hard currency
4. DLocal banks refuse to lend at all

1. AIt raises the barriers to entry
2. BIt removes the need for capital
3. CIt leaves the barriers unchanged
4. DIt lowers the barriers to entry

1. AA smartphone and a social media page
2. BA computer aided design and manufacture suite
3. CAn industrial robot arm
4. DAn automated packaging line

1. AIt needs no design work done
2. BIts results can be measured
3. CIt costs the same each month
4. DIt reaches only older buyers

1. AFinance lasts as long as the asset
2. BFinance costs less than the asset
3. CFinance is raised from one source
4. DFinance is repaid before the asset

1. ADebt as a share of total capital
2. BStock as a share of current assets
3. CWages as a share of total costs
4. DProfit as a share of turnover

1. AA private company
2. BA sole trader business
3. CA public limited company
4. DAn ordinary partnership

1. AThe right to a fixed dividend
2. BA share of control and profit
3. CThe value of the firm's assets
4. DThe ability to sell the holding

1. AIt pays less tax on its profit
2. BIt has a higher gearing ratio
3. CIt needs a smaller sum of money
4. DIt can offer security to a lender

1. AIt never has an opportunity cost
2. BNo interest and no issue costs at all
3. CIt can be raised in any amount
4. DIt is exempt from company tax

1. AOn paying the first deposit
2. BOn insuring the machine fully
3. COn signing the agreement
4. DOn paying the last instalment

1. AIt is cheaper in total than any other source
2. BIt carries no fixed regular payment
3. CIt can be upgraded at the term's end
4. DIt becomes the firm's own property

1. AA known monthly cost
2. BMaintenance in the price
3. CThe use of the machine now
4. DAn asset it can sell later

1. AInterest is due whether it earns or not
2. BThe loan must be repaid in one sum
3. CControl of the company is given away to a lender
4. DThe machine cannot be insured

1. ALong term debt secured on assets
2. BA share carrying a fixed dividend
3. CA short term bank borrowing
4. DCredit given by a supplier

1. AThe overdraft carries no interest
2. BThe bank would take the machine as security
3. CThe overdraft is repayable on demand
4. DThe overdraft cannot be increased

1. ASecurity over the premises
2. BA stake in the business
3. CA share of the sales made
4. DA fixed rate of interest

1. AA single item made to order
2. BA group of identical items made together
3. CA product assembled by one worker
4. DA standard product made continuously

1. AThe workers cannot be trained
2. BThe materials cannot be stored
3. CThe line cannot be kept full
4. DThe product cannot be priced

1. AThe ability to buy in bulk
2. BThe ability to employ workers
3. CThe ability to vary the product
4. DThe ability to sell on credit

1. AWorkers are paid by the piece
2. BSpare parts are never available
3. COne stoppage halts the whole line
4. DThe product cannot be reworked

1. AA shortage of skilled craftsmen
2. BDisputes over the piece rate
3. CAbsenteeism and labour turnover
4. DOvertime that cannot be paid

1. AExtend the range of models sold
2. BMove it to a larger market
3. CRaise the price it can carry
4. DRemove any cost that adds no value

1. AIt is applied at the design stage
2. BIt is carried out by marketing
3. CIt is applied after the launch
4. DIt is applied to services only

1. AAdding features to the product
2. BRaising the advertising budget
3. CLengthening the credit period
4. DStandardising the components used

1. AShortens the product's useful life
2. BRaises the price customers will pay
3. CRemoves the need for inspection
4. DLowers the stock that must be held and insured

1. AThe product is cheapened and the brand suffers
2. BThe design department loses its own budget
3. CThe firm's suppliers refuse to deal with it
4. DThe product takes longer to make than it once did

1. AThe views of the sales force
2. BThe prices charged by close rivals
3. CResearch on what customers value
4. DThe firm's own cost accounts

1. AA one off craft piece
2. BA packaged food line
3. CA mass produced kettle
4. DAn assembled bicycle

1. AA weekly schedule of advertisements to run
2. BA long term plan to meet marketing aims
3. CA list of the products a firm sells
4. DA forecast of next season's sales

1. AProduction costs that never change
2. BPrices fixed by government
3. CA small number of buyers
4. DVery short product life cycles

1. AThe same fabric would have to be used
2. BThe positioning would contradict itself
3. CThe law forbids two brand names in one firm
4. DThe two need the same production line

1. ADemand becomes perfectly inelastic
2. BSales hold up better than food
3. CSales fall by more than incomes have
4. DPrices rise to protect the margin

1. AIt takes sales from the firm's own line
2. BIt uses the same fabric and dye
3. CIt replaces a rival's product line
4. DIt is sold through the same shops as before

1. AInformation already published
2. BInformation from a focus group
3. CInformation gathered in store
4. DInformation from a trial launch

1. AIt cannot be checked at all
2. BIt takes months to collect
3. CIt can be out of date
4. DIt costs a great deal

1. AInformation taken from a report
2. BInformation held by a competitor
3. CInformation printed by government
4. DInformation collected first hand

1. AOne member can sway the rest
2. BThe results cannot be recorded
3. CIt costs less than a survey does
4. DIt reaches too many respondents

1. AIt tests a garment not yet made
2. BIt explains why a style is chosen by buyers
3. CIt reaches a national sample
4. DIt shows what people actually wear

1. AThe whole range must be made
2. BThe price cannot be varied
3. CCompetitors see and copy it
4. DThe test cannot be measured

1. AFrom volunteers who reply first
2. BIn set numbers from chosen groups
3. CFrom every customer on a list
4. DAt random from the whole of the market

1. AQualitative work with real samples
2. BThe firm's own sales records
3. CA large postal questionnaire
4. DPublished government population statistics

1. ATesting a sample of finished goods
2. BInspecting output at every stage
3. CComparing performance with the best
4. DSetting a target from last year

1. ACustomers judge it against rivals
2. BPast records are rarely accurate
3. CPast records cannot be compared
4. DExternal data is always cheaper

1. AA comparison with a rival
2. BAn innovation ahead of the leader
3. CA measure of the gap that now exists
4. DA target for the workforce

1. ARivals work in another industry
2. BRivals use the same equipment
3. CRivals publish the same figures
4. DRivals do not open their processes

1. AIt uses only financial figures
2. BIt measures but does not improve
3. CIt is done once every ten years
4. DIt applies to products alone

1. AThe highest specification made
2. BThe most expensive materials used
3. CThe longest guarantee offered
4. DFitness for the purpose the buyer expects

1. AIt supports a premium price
2. BIt removes the need to advertise
3. CIt shortens the production run
4. DIt lowers the cost of materials

1. AWarranty claims and returns
2. BAdvertising a new model
3. CResearch and development
4. DTraining of new recruits

1. AIt qualifies the firm for an export licence
2. BIt wins the order against every rival
3. CIt gets the firm considered, not chosen
4. DIt is required by law before selling

1. AIt shortens the product's life
2. BThey will not pay for the extra
3. CIt cannot be measured properly
4. DIt breaks consumer protection law

1. AMany buyers will not trade without it
2. BIt lowers the duty charged abroad
3. CIt removes the need for research
4. DIt raises the price obtainable

1. AIt guarantees success on its own account
2. BIt is necessary but not sufficient
3. CIt matters least in food supply
4. DIt matters only to large firms