Business Studies Paper 2 November 2015

1. ASeveral models made on one line
2. BIdentical items made in groups
3. CA standard product made without a break
4. DOne item completed before the next

1. AOne small, narrowly defined segment
2. BTwo segments at different prices
3. CEvery buyer the firm can reach
4. DThe largest segment in the whole market

Answer this when you sit the paper.

1. AThe firm has borrowed long term
2. BShort term debts exceed current assets
3. CThe firm is trading at a loss
4. DStock is the largest of its current assets

Answer this when you sit the paper.

1. AFashion stock is hard to sell fast
2. BCash is excluded from the acid test
3. CCreditors are left out of both tests
4. DDebtors always pay within a month

1. AIt is repayable on demand
2. BIt carries no interest charge
3. CIt is secured on the stock held
4. DIt cannot be increased at all

1. AIt leaves current liabilities
2. BIt raises the value of assets
3. CIt converts stock into cash
4. DIt removes the interest charge

1. AThe title to the premises
2. BThe use of the premises
3. CAny future rise in value
4. DThe right to sublet it on

1. ACash is shown at the year's rate
2. BLand is shown at what it cost
3. CDebtors are shown after discount
4. DStock is shown at its sale price

1. AThe machines it owns outright
2. BThe cash held in its bank account
3. CIts stock of finished garments
4. DIts own reputation with buyers

1. AIt is a snapshot of one day
2. BIt is prepared by an auditor
3. CIt is published once a decade
4. DIt omits all the liabilities

1. AThe asset may be sold at a loss
2. BAssets are revalued every year
3. CDepreciation rests on estimates
4. DThe cost paid is never recorded

1. A6.7 %
2. B13 %
3. C15 %
4. D30 %

1. AWorkers retiring at the usual age
2. BStaff leaving to study full time
3. CPay below the local going rate
4. DA new employer opening nearby

1. AThe work is done in teams
2. BThere is no path to promotion
3. CThe premises are too far away
4. DThe pay is reviewed each year

1. APoor selection and induction
2. BA wage below the minimum
3. CToo little overtime offered
4. DAn unsafe place of work

1. AExisting firms cut their hours
2. BAlternative jobs become plentiful
3. CLocal wages are held down by law
4. DTraining becomes more expensive

1. AIt replaces the need to train
2. BIt motivates for many years
3. CIt ends absenteeism entirely
4. DIt removes dissatisfaction

1. AA higher rate of basic pay
2. BResponsibility for the outcome
3. CA move to another department
4. DMore tasks of the same kind

1. AThe recruit is trained beforehand
2. BThe recruit signs a longer contract
3. CThe recruit knows what to expect
4. DThe recruit is paid a bonus

1. ATo choose a replacement worker
2. BTo settle the final wage owed
3. CTo persuade the worker to stay on longer
4. DTo learn why the worker is leaving

1. ATrained staff demand less overtime
2. BTraining costs come out of wages
3. CTraining keeps workers away from the job
4. DTrained staff are poached by rivals

1. AA rise in the piece rate
2. BPublic praise from a manager
3. CA bonus paid each quarter
4. DA share of the year's profit

1. AWage costs fall automatically
2. BTraining budgets can be cut
3. CSupervision becomes easier
4. DNew people bring fresh ideas

1. AIt is offered to every employee
2. BIt is agreed with the trade union
3. CIt costs less than turnover does
4. DIt raises output in the same year

1. AA long term loan
2. BA bank overdraft
3. CA rights issue
4. DRetained profit

1. ALenders may not charge interest
2. BShareholders would lose all their control
3. CInterest must be paid in a bad year
4. DThe tax charge would rise sharply

1. AA private limited company
2. BA registered co-operative
3. CA limited partnership
4. DA public limited company

1. AInterest is paid only in profit
2. BInterest is allowed against tax
3. CInterest is fixed by the lender
4. DInterest is paid to shareholders

1. AA rights issue
2. BA debenture issue
3. CA public share issue
4. DA bank overdraft

1. AIt pleases every shareholder
2. BNo interest and no repayment
3. CIt carries no opportunity cost
4. DIt can be raised in any sum

1. AIt is limited to profit kept back
2. BIt raises the firm's gearing
3. CIt cannot be used for buildings
4. DIt must be repaid within a single year

1. AThe firm's stock of goods
2. BThe debts owed by customers
3. CThe directors' own salaries
4. DThe land and the building

1. AThe firm's largest creditors
2. BThe general investing public
3. CThe company's own employees
4. DExisting shareholders first

1. AThe shares can be cancelled
2. BThe holders can be replaced
3. CThe capital can be called in
4. DThe dividend can be passed

1. AIssue them to a new director
2. BAdvertise them to the public
3. CSell them to a family member
4. DTransfer them by agreement

1. ARent is cheaper than any loan
2. BRates are not payable on rent
3. CThe building can then be sold
4. DCapital is not tied up in bricks

1. AFrom a government grant
2. BFrom one bank loan alone
3. CFrom a mix of sources
4. DFrom retained profit alone

1. AIt is spread over many models
2. BIt is met by a single order
3. CIt is seasonal and varied
4. DIt is large and continuous

1. ABoth fixed and variable costs per unit rise
2. BBoth fixed and variable costs per unit fall
3. CFixed costs fall, variable cost per unit rises
4. DFixed costs rise, variable cost per unit falls

1. ATheir work becomes semi skilled
2. BThey supervise the whole line
3. CTheir pay rises with the output
4. DThey are trained as engineers

1. AUniform and uninterrupted
2. BDelivered once every season
3. CBought from a single supplier
4. DVaried and bought in small lots

1. AThe ability to employ workers
2. BThe right to sell on credit
3. CThe chance of bulk discounts
4. DThe speed of changing design

1. AMarket segmentation
2. BCritical path analysis
3. CInvestment appraisal
4. DValue analysis

1. AIt is made from a single material
2. BIt is bought to a buyer's measurements
3. CIt is replaced every few months
4. DIt is sold in very large quantities each year

1. AIts materials cost far less
2. BIts overheads are spread wider
3. CA unique piece carries a premium
4. DIt is sold through retailers

1. AGoods are made against orders
2. BCustomers pay only on delivery
3. CMaterials are bought in bulk
4. DWorkers are paid by the piece

1. AHeavy spending on advertising
2. BHigh rent on a large factory
3. CSkilled labour and no bulk buying
4. DExpensive specialised machinery

1. AIt raises the wage bill sharply
2. BIt breaches the firm's contract
3. CIt is a direct loss of capacity
4. DIt ends the firm's bulk orders

1. AQuotes must be given in writing
2. BCustomers compare every quote
3. CThe price cannot be changed
4. DAn error comes off the margin

1. AFlow production
2. BCell production
3. CBatch production
4. DJob production

1. ALayers removed from the chart
2. BEvery decision taken at the head office
3. CAuthority passed down the hierarchy
4. DDepartments merged into one

1. AHead office reports too often
2. BThe branch pays less in rent
3. CThe local market is known best
4. DThe branch has more capital

1. APay is set at one national rate
2. BFewer managers are then needed
3. CHead office keeps every record
4. DDivisional heads learn to manage

1. ACut the number of branches
2. BBuy all supplies centrally
3. CMeasure each unit's performance
4. DSet one price for the whole firm

1. AControl of its own prices
2. BSpeed in serving customers
3. CDiscounts from bulk orders
4. DThe loyalty of its staff

1. AA functional head and a project head
2. BA supervisor on each shift
3. COne departmental manager
4. DThe managing director and nobody else

1. ASelling one product in one area
2. BProject work drawing on several skills
3. CRoutine clerical work keeping the records
4. DRepetitive work on a flow line

1. ASpan of control
2. BUnity of command
3. CChain of command
4. DDivision of labour

1. ATargets change every quarter
2. BTwo managers judge one person
3. CPay is fixed by the project team
4. DNobody keeps a written record

1. ALarger premises are required
2. BMore managers and more meetings
3. CMore machinery on each site
4. DHigher wages for every worker

1. AThe specialist is paid a bonus
2. BThe specialist heads a department
3. CThe specialist serves several projects
4. DThe specialist trains all the new recruits

1. AA consultancy with clients
2. BA small routine workshop
3. CA large building contractor
4. DAn aerospace manufacturer

1. AA regional structure
2. BA taller hierarchy
3. CTemporary project teams
4. DA wider span of control

1. AThe ceiling that the market will accept
2. BThe margin it will earn on a sale
3. CThe price at which it will break even exactly
4. DThe floor below which it should not sell

1. AHow demand responds to price
2. BHow supply responds to price
3. CHow price responds to costs
4. DHow demand responds to income

1. AThe wage bill it must meet
2. BThe reaction of its rivals
3. CThe cost of its materials
4. DThe tax charged on sales

1. AA maximum price order
2. BA grant for new machinery
3. CAn indirect tax on the good
4. DA subsidy to the producer

1. AAbove its variable cost
2. BBelow its variable cost
3. CAbove the market price
4. DAbove its total cost

1. AAt cost plus a fixed margin
2. BAt the price rivals charge
3. CAt a low price to gain share
4. DAt a high price to early buyers

1. AThe product is new or clearly better
2. BThe market is highly price sensitive
3. CThe firm has spare capacity to fill
4. DRivals sell an identical product

1. ACosts are not recovered early
2. BVolume can never be increased
3. CHigh margins attract competitors
4. DThe price cannot be lowered

1. ACosts recovered in year one
2. BMarket share won quickly
3. CThe highest margin per unit
4. DA premium quality image

1. ADemand proves to be inelastic
2. BA rival matches the low price
3. CCapacity cannot be filled
4. DThe product looks too costly

1. AThe firm's own cost structure
2. BThe prices its rivals charge
3. CThe size of the total market
4. DThe stage of the life cycle

1. AA skimming strategy
2. BA cost plus method
3. CA penetration strategy
4. DA psychological tactic

1. AMatch a rival's price cut
2. BTest a new market segment
3. CClear obsolete stock quickly
4. DDraw buyers to other goods

1. AThe stock it holds in reserve
2. BThe tax it settles each year
3. CSurvival and growth in share
4. DThe wages it pays its staff

1. AA weak brand name
2. BOld machinery
3. CHigh import duties
4. DPoor management

1. AIt runs out of cash to pay
2. BIt sells below its total cost
3. CIt employs too few workers
4. DIt holds too little stock

1. ACosts and prices change fast
2. BInterest rates are then fixed
3. CWages are set by government
4. DDemand becomes fully elastic

1. ABasic foods and staples
2. BServices bought for cash
3. CGoods sold for export
4. DDurables bought on credit

1. AImported inputs cost more
2. BLocal wages must be cut
3. CExport prices abroad rise
4. DInterest charges are fixed

1. AA generator must be run
2. BStock must be insured
3. CWages have to be raised
4. DPrices must be reduced

1. AIt removes the need to advertise
2. BIt lowers the cost per unit
3. CIt sells what buyers want
4. DIt shortens the credit period

1. ANearness to a raw material
2. BNearness to a rival's depot
3. CNearness to a port
4. DNearness to its customers

1. AThe size of the population
2. BThe rate of price inflation
3. CThe strength of a competitor
4. DMinimum wage legislation

1. ABy publicising its pollution
2. BBy approving its accounts
3. CBy setting its selling prices
4. DBy fixing its wage rates

1. AThe tariff on its imports
2. BThe training it provides
3. CThe level of interest rates
4. DThe rate of unemployment

1. AThe current stock level
2. BThe size of the overdraft
3. CThis month's cash balance
4. DThe ability to innovate

1. AA statement of the firm's assets
2. BA record of everything spent last year
3. CA forecast of the market's growth
4. DA financial plan for a future period

1. AThe budget the board may change
2. BAll the budgets brought together
3. CThe budget for capital spending
4. DThe largest of the department budgets

1. AThe labour budget
2. BThe cash budget
3. CThe sales budget
4. DThe purchases budget

1. AFlexible budgeting
2. BManagement by exception
3. CZero based budgeting
4. DManagement by objectives

1. AThey need not report the variance
2. BThey can then spend without limit
3. CThey commit to a target they set
4. DThey can change the figures later

1. ASpends the whole of the budget by year end
2. BReports a variance to the directors
3. CSets a target above last year's level
4. DOverstates cost and understates revenue

1. ATo clear the stock it is holding
2. BTo protect next year's allocation
3. CTo reduce the tax the firm pays
4. DTo meet the sales budget agreed

1. ALast year's plus a percentage
2. BFrom the sales forecast alone
3. CFrom the industry average cost
4. DFrom nothing, justifying each item

1. AJustify every item of spending
2. BRepeat last year's allocation
3. CSpend nothing in the first month
4. DSet the budget at break even

1. AThe identity of the buyer
2. BThe level of output
3. CThe wage rate agreed
4. DThe rate of company tax

1. ABy transferring staff elsewhere
2. BBy reporting the variance late
3. CBy raising the prices charged to customers
4. DBy cutting maintenance and training

1. AAll are checked by the auditor
2. BAll are set by the same manager
3. CAll rest on the sales forecast
4. DAll are prepared in one month

1. AAuthority to spend a sum
2. BA guaranteed level of output
3. CFreedom from any appraisal
4. DA share of the year's profit

1. AThe expected value of a branch
2. BA point where chance decides
3. CA point where a choice is made
4. DThe cost of an activity

1. AA chance event
2. BA finished project
3. CA decision point
4. DA money outcome

Answer this when you sit the paper.

1. AFrom the top downwards
2. BFrom the largest branch first
3. CFrom right to left
4. DFrom left to right

1. AThe whole life of a project
2. BThe time value of money
3. CThe size of the initial outlay
4. DA sequence of later decisions

1. AThe arithmetic is complicated
2. BThe outcomes are all negative
3. CThe probabilities are estimates
4. DThe diagram is hard to draw

1. AThe average never actually occurs once
2. BThe branches cannot be compared
3. CProbabilities must add up to one
4. DExpected value ignores the outlay made

1. ALength of service
2. BAttitude to risk
3. CLevel of training
4. DStyle of leadership

1. AThe probability of failure
2. BThe money value of an outcome
3. CThe effect on staff morale
4. DThe cost of each option

1. AThe branches are never equal
2. BThe arithmetic is often wrong
3. CExact figures rest on guesses
4. DThe outcome is always a loss

1. ABy drawing more branches
2. BBy using a longer period
3. CBy omitting the outlay
4. DBy nudging the probabilities

1. ARatio analysis
2. BValue analysis
3. CBreak even analysis
4. DNet present value

1. AIt falls, since more can change
2. BIt stays the same throughout
3. CIt rises, since trends settle
4. DIt depends on the sample used

1. AThe price has not been set
2. BThere is no past data to use
3. CThe product is not yet made
4. DRivals have not yet reacted

1. AIts customers demand a discount
2. BIts own targets are then easier
3. CIts manager insists on caution
4. DIts commission is then higher

1. AA rise in the firm's costs
2. BA rival cutting its price
3. CA change in the sales team
4. DA delay in one delivery

1. AThe growth stage
2. BThe maturity stage
3. CThe turning point
4. DThe launch date

1. AA guarantee of the outcome
2. BA shorter forecast period
3. CA larger sample of buyers
4. DA firmer base for the trend

1. ABy taking the highest figure
2. BBy averaging successive periods
3. CBy weighting the latest month
4. DBy removing the largest value

1. AFour
2. BTwelve
3. CThree
4. DTwo

1. ATrend value less the actual sales
2. BActual sales less the trend value
3. CActual sales divided by four
4. DThe average of the four quarters

1. AEvery second period
2. BThe middle of the series
3. CEach end of the series
4. DThe largest single value

1. AExponential smoothing
2. BExtrapolation
3. CIndex numbers
4. DLeast squares regression

1. AA seasonal one
2. BA slow selling one
3. CAn established one
4. DA newly launched one