Business Studies Paper 2 November 2017

1. AWorker directors on the board
2. BAutonomous work groups
3. CCollective bargaining with a union
4. DQuality circles in each department

1. AA written memorandum
2. BAn audio-visual presentation
3. CA telephone conference call
4. DA notice on the staff board

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AA loss of $100 000
2. BAn exact break-even position
3. CA loss of $900 000
4. DA profit of $100 000

1. AFixed costs are cancelled once output rises
2. BVariable costs are no longer incurred at all
3. CEvery unit sold helps cover fixed costs
4. DThe reported loss becomes a profit at once

1. AImported rivals become dearer to buyers
2. BLocal wage costs fall in nominal terms
3. CExport earnings fall in local currency
4. DImported rivals become cheaper for buyers

1. AInsurance on stock held in the warehouse
2. BSeverance pay to redundant workers
3. CRaw material purchases for next month
4. DAdvertising for the coming season

1. AIt supports the spoken address with data
2. BIt allows questions to be asked at once
3. CEveryone sees the same figures at once
4. DIt leaves no record to refer back to

1. AVisual displays remove the need for a speaker
2. BSpeech carries more detail than a table does
3. CListeners memorise spoken numbers easily
4. DFigures can be seen and compared at once

1. AA change in consumer tastes
2. BAn ageing local population
3. CA sustained rise in the rate of inflation
4. DPressure from an environmental group

1. ABorrowing for new plant costs more
2. BWage bills fall automatically
3. CImported raw materials become cheaper
4. DDemand for durable goods rises

1. AIt rises as output falls
2. BIt stays the same per unit
3. CIt falls as output falls
4. DIt falls to zero when sales stop

1. AA fall in the exchange rate
2. BA change in consumer lifestyles
3. CAn increase in import duty
4. DA rise in the bank lending rate

1. AIts raw material costs fall sharply
2. BIt is freed from planning controls
3. CIt gains an automatic tax rebate
4. DIt must spend on waste treatment

1. AAn immediate rise in market share
2. BLower fixed costs for the plant
3. CLost output during the stoppage
4. DA fall in the firm's tax liability

1. AIts exports become cheaper abroad
2. BIts wage bill is paid in foreign currency
3. CIts fixed costs disappear from the accounts
4. DIts bank loans are written off by lenders

1. AA manager chosen by the workforce
2. BNo manager, as teams are self-run
3. COne manager only, as in a hierarchy
4. DTwo managers at the same time

1. ASpan of control
2. BDelegation of authority
3. CUnity of command
4. DDivision of labour

1. AOnly one manager holds all power
2. BTwo chains of authority must agree
3. CStaff have no training in the role
4. DThere are no project teams at all

1. AIt requires a larger factory site
2. BIt pays every worker a bonus
3. CIt needs more managers and more administration
4. DIt removes the need for appraisal

1. AA committee named in the rules
2. BA team set up by senior management
3. CA department shown on the chart
4. DA group formed by staff themselves

1. AF W Taylor
2. BAbraham Maslow
3. CHenri Fayol
4. DElton Mayo

1. AThe grapevine
2. BThe chain of command
3. CThe span of control
4. DThe formal network

1. ABy reporting faults to managers
2. BBy setting its own output norms
3. CBy training new staff informally
4. DBy meeting outside working hours

1. AIts competitors' profits
2. BIts advertising budget
3. CThe size of its workforce
4. DIts cost of production

1. AIt stays the same
2. BIt rises
3. CIt rises then stays level
4. DIt falls

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AInelastic demand and no rivals
2. BElastic demand and easy entry by rivals
3. CA patented product with no substitute
4. DA luxury sold to wealthy buyers

1. AIt cannot recover research costs
2. BMargins are thin from the start
3. CHigh margins attract imitators
4. DIt rules out any later price cut

1. ADestroyer pricing
2. BCost-plus pricing
3. CPsychological pricing
4. DPenetration pricing

1. AFootfall and customer parking
2. BCloseness to a deep water port
3. CAccess to a source of raw timber
4. DThe cost of exporting its stock

1. AIt sells to wholesalers only
2. BIts goods are bulky and must be displayed
3. CIt must hold cash on the premises
4. DIts goods perish very quickly

1. AIt can charge any price it likes
2. BIt shares the trade they draw in
3. CIt pays no rent on the premises
4. DIt faces no competition at all

Answer this when you sit the paper.

1. ALess capital tied up in stock
2. BLonger production runs per batch
3. CLarger bulk buying discounts
4. DGreater safety stock is held

1. AThe crop can be delivered daily
2. BThe crop must be stored after harvest
3. CThe crop is bought abroad only
4. DThe crop has no storage cost

1. ACosts fall further
2. BQuality improves
3. COutput rises briefly
4. DProduction stops

Answer this when you sit the paper.

1. AThe cash budget
2. BThe capital expenditure budget
3. CThe production budget
4. DThe sales budget

1. AMarket research
2. BRatio analysis
3. CVariance analysis
4. DBreak-even analysis

1. AWindow dressing
2. BZero-based budgeting
3. CFlexible budgeting
4. DBudgetary slack

1. AIt removes their workload
2. BIt lowers their motivation and breeds resentment
3. CIt raises their motivation
4. DIt has no effect on them

1. ABudgets become illegal to use
2. BManagers cannot add numbers
3. CThe figures date before use
4. DCosts no longer need control

1. AA flexible budget
2. BA capital budget
3. CA master budget
4. DA zero-based budget

1. AOver five years
2. BOver ten years
3. CUnder one year
4. DBetween two and five years

1. ADebentures
2. BOrdinary shares
3. CTreasury bills
4. DMortgage loans

1. AThe purchase of a rival firm
2. BA ten-year expansion plan
3. CIts working capital needs
4. DA new factory building

1. AThe capital market charges no fees
2. BAn overdraft cannot be repaid early
3. CThe asset's life is long
4. DOverdrafts carry no interest at all

1. AIts ability to borrow again
2. BThe right to set its own prices
3. CIts claim on its fixed assets
4. DA share of ownership

1. AAs a clearing house
2. BAs a secondary market
3. CAs a commercial bank
4. DAs a primary market

1. AInvestors know they can sell out again
2. BCompanies pay no dividends
3. CShare prices are fixed at issue
4. DBrokers charge no commission

1. AMost of them export their output
2. BMost of them are owned abroad
3. CMost of them pay no tax at all
4. DMost are small and unlisted

Answer this when you sit the paper.

1. AA, as cash returns sooner
2. BB, as it costs more to start
3. CA, as it earns more profit
4. DB, as cash returns sooner

1. AThe rate at which prices are rising
2. BThe time taken to recover the outlay
3. CThe value of future cash flows today
4. DProfit as a share of the outlay

1. AThe profit earned each year
2. BThe time value of money
3. CThe rate of tax on profits
4. DThe size of the initial outlay

1. AProject B, as it adds more value
2. BProject A, as it costs less to start
3. CNeither, as both NPVs are negative
4. DBoth, as NPV cannot rank projects

1. ANet present value
2. BPayback period
3. CAverage rate of return
4. DInternal rate of return

1. ACash flows arising after the payback date
2. BThe size of the outlay
3. CThe timing of early flows
4. DThe cost of the machinery

1. AIt uses last year's accounts only
2. BIt cannot handle two projects
3. CIt ignores the initial outlay
4. DIt rests on forecast cash flows

Answer this when you sit the paper.

1. AWork study measurement
2. BComputer aided design
3. CManagement information systems
4. DComputer aided manufacture

1. AOutput is more consistent between units
2. BFewer variants can be built
3. CDesign work becomes slower
4. DWage costs rise steadily

1. ARobots cannot weld car bodies
2. BLow volumes cannot spread its cost
3. CRobots need no maintenance at all
4. DIts cars need no quality control

1. AProduction halts and work spoils
2. BSoftware updates itself faster
3. CRobots switch to manual working
4. DOutput rises during an outage

1. AIt raises the cost of imports
2. BIt displaces workers from jobs
3. CIt slows the design of new models
4. DIt lowers the quality of cars

1. AThe technology dates quickly
2. BComputer hardware is a fixed asset
3. CSoftware cannot be licensed twice
4. DStaff turnover forces new purchases

Answer this when you sit the paper.

1. AFrom top to bottom
2. BIn no fixed order
3. CFrom right to left
4. DFrom left to right

1. AIt requires no money figures
2. BIts probabilities are estimates
3. CIt cannot show two options
4. DIt works only for large firms

1. AIt overstates the money involved
2. BIt ignores the money involved
3. CIt is a long-run average
4. DIt cannot be calculated at all

Answer this when you sit the paper.

1. AHow much it costs to complete
2. BHow often it must be repeated
3. CHow long it may be delayed
4. DHow many workers it requires

1. AWhich workers are most skilled
2. BWhich activities are critical
3. CWhich product will sell best
4. DWhich supplier is the cheapest

1. AThe best time to launch a product
2. BThe most popular product design
3. CThe cheapest supplier of stock
4. DThe best use of scarce resources

1. AThe gain from one extra unit
2. BThe price paid for it last year
3. CThe amount of it left unused
4. DThe total cost of buying it

1. AIt ignores scarce resources
2. BIt needs no data on costs
3. CIt assumes linear relationships
4. DIt handles only one product