Business Studies Paper 2 November 2021

1. AA fall in the interest rate set by the bank
2. BA rise in its value against another currency
3. CA rise in the general level of prices at home
4. DA fall in its value against another currency

1. ABoth imports and exports become dearer
2. BImports become dearer and exports cheaper
3. CImports become cheaper and exports dearer
4. DBoth imports and exports become cheaper

Answer this when you sit the paper.

1. AReject it, because it breaches the policy
2. BAccept it, because the cash flows are rising
3. CAccept it, because the payback is under 4 years
4. DReject it, because the project makes a loss

1. AThe size of the initial outlay on the project
2. BThe number of years the project will run for
3. CCash flows earned after the outlay is recovered
4. DCash flows earned before the outlay is recovered

1. AToday's dollar is protected against any loss
2. BFuture dollars cannot be spent on any fixed assets
3. CFuture dollars are taxed at a much higher rate
4. DToday's dollar can be invested to earn a return

1. ACutting the grade of leather used in the shoe uppers
2. BMatching the imported price whatever the cost
3. CWithdrawing the range from the home market
4. DDifferentiating on quality and after sales service

1. AProduction of a set quantity, then a changeover
2. BContinuous output of a standard item along a line
3. CProduction carried out by hand at a workbench
4. DProduction of a single item to a customer's order

1. AWages are no longer paid to any workers
2. BInterest on the equipment loan is waived
3. CEach worker is paid a higher rate for the same output
4. DFixed costs are spread over a large output

1. AThe ability to sell through retail outlets
2. BThe ability to buy leather from local tanners
3. CThe ability to export to a neighbouring country
4. DThe ability to switch between styles and sizes

1. AEach stage must hold a large buffer stock
2. BA breakdown at one stage halts all output
3. CEvery worker must be a skilled craftsman
4. DThe product cannot be inspected for faults

1. AIt falls, because fixed costs are higher
2. BIt rises, because fixed costs are higher
3. CIt rises, because variable costs are higher
4. DIt is unchanged, because total costs are equal

1. AThey are spent again, creating demand elsewhere
2. BThey reduce the amount of money in circulation nationally
3. CThey are paid directly to the government
4. DThey are taxed at a lower rate than profits

1. ARent paid by one household to another
2. BPay as you earn deducted from wages
3. CMoney sent home by workers abroad
4. DInterest earned on household savings

1. AIt saves the foreign currency imports would cost
2. BIt raises the exchange rate against the rand
3. CIt reduces the country's rate of inflation
4. DIt earns foreign currency by exporting finished goods

1. AThe share capital issued by public companies
2. BThe tax that is collected from company profits each year
3. CThe money households hold in savings accounts
4. DInvestment adding to the country's productive capacity

1. APollution and depletion of natural resources
2. BThe foreign currency earned by exporters
3. CThe taxes paid on profits and on wages
4. DThe training given to apprentices and technicians

1. ASocial, physiological, safety, esteem, self actualisation
2. BSafety, physiological, esteem, social, self actualisation
3. CPhysiological, social, safety, self actualisation, esteem
4. DPhysiological, safety, social, esteem, self actualisation

1. ASocial and belonging
2. BSafety and security
3. CEsteem and recognition
4. DSelf actualisation

1. APublic recognition of a good month's work
2. BA safe and well secured banking hall
3. CA canteen serving meals during the working shift
4. DA branch social club and sports team

1. ARaising their salary by ten per cent a year
2. BPutting them in charge of a new branch
3. CMoving them to a safer working area
4. DAdding them to the staff sports team

1. AIt must be satisfied again each week
2. BIt motivates the employee more strongly
3. CIt no longer motivates the employee
4. DIt prevents any higher need arising

1. AIt says nothing whatever about the need for money at work
2. BPeople pursue several needs at once, in no fixed order
3. CIt applies only to workers in a factory setting
4. DIt was never tested on any group of employees

1. AIt prevents dissatisfaction without motivating
2. BIt motivates strongly once it is increased
3. CIt satisfies the employee's need for self actualisation
4. DIt removes the need for any recognition

1. AThe number of applicants a vacancy manages to attract
2. BThe training each employee still needs to do
3. CThe performance of each employee over the year
4. DThe relative worth of the jobs in an organisation

1. AEach job scores points on agreed factors
2. BEach job holder is scored by colleagues
3. CEach job is priced from a salary survey
4. DEach job is ranked against one other job

1. AThe duty to give notice of redundancy
2. BEqual pay for work of equal value
3. CThe duty to publish audited accounts
4. DThe duty to train every new employee

1. AThe physical conditions the job is done in
2. BThe responsibility carried by a more senior post
3. CA shortage of a particular skill in the market
4. DThe qualifications the job holder must have

1. AA higher salary always raises output
2. BA pay difference seen as unfair demotivates
3. CEmployees never compare their pay
4. DPay is the only true motivator people have at work

1. AA tariff imposed by a rival country
2. BA foreign buyer failing to pay
3. CA rise in the cost of shipping
4. DA fall in the exchange rate

1. AA duty charged on goods leaving the country
2. BA refund of income tax paid by exporters
3. CA duty charged on the foreign currency an exporter earns
4. DA refund of duty on inputs used to make exports

1. ATheir goods become cheaper in foreign markets
2. BTheir goods become dearer in foreign markets
3. CTheir imported inputs become much cheaper to buy
4. DTheir local wage bill falls in money terms

1. AImported raw materials and machinery cost more
2. BThe firm must pay duty on its exports
3. CExport sales become a great deal harder to win abroad
4. DLocal wages must by law be raised at once

1. AA market where exporters buy foreign currency
2. BA body that inspects goods before shipment
3. CA port through which all exports must pass
4. DAn area offering tax and customs concessions

1. AThe subsidy raises the exporter's own costs
2. BOther countries may retaliate with duties
3. CThe subsidy is taxed at the corporate rate
4. DThe subsidy must be repaid within a year

1. AA repeated devaluation of the local currency
2. BInfrastructure, customs reform and trade agreements
3. CA permanent subsidy paid on every single unit exported
4. DA tax holiday granted for twenty five years

1. AThe receiver can restate what is required
2. BThe instruction was put in writing and filed
3. CThe instruction was sent to everyone
4. DThe sender used the fastest medium

1. AEmployees are ignoring what their supervisors say
2. BThe formal channels are not supplying enough
3. CThe workforce is well informed already
4. DThe firm needs a new organisation chart

1. AA check that all meetings have written minutes
2. BA survey of what staff know and how they heard it
3. CAn inspection of the firm's telephone and postal accounts
4. DA count of the emails sent by each department

1. AThe department needs new premises
2. BInstructions are not being understood
3. CCustomers are ordering the wrong items
4. DThe department is overstaffed

1. AThe list of suppliers used last year
2. BThe stock take at the end of the year
3. CExit interviews and turnover figures
4. DThe annual depreciation schedule

1. AThe time until the project earns its first profit
2. BThe time allowed to repay the loan raised
3. CThe time the equipment is expected to last
4. DThe time taken to recover the initial outlay

1. AOne appraising a building lasting fifty years
2. BOne with plenty of cash and a long horizon
3. COne whose managers are all accountants
4. DOne short of cash and facing rapid change

1. AAccept the project if the value is zero
2. BAccept the project with the longest life
3. CAccept the project if the value is negative
4. DAccept the project if the value is positive

1. AIt fixes the total cash the project will earn
2. BIt sets the amount of the initial outlay
3. CA small change in it can reverse the decision
4. DIt determines the life of the equipment bought

1. AIt uses accounting profit rather than cash
2. BIt reports an absolute sum, not a return per dollar
3. CIt ignores every cash flow arising after the third year
4. DIt cannot be calculated for a small outlay

Answer this when you sit the paper.

1. AOne applies to plant and machinery, the other to buildings
2. BOne is used by lenders and the other by owners
3. COne measures liquidity and the other profitability
4. DOne uses cash flows and the other uses profit

1. AIt reads the barcode and updates stock records
2. BIt rotates the stock on the shelves
3. CIt sets the price the supplier will charge
4. DIt counts the cash that is held in the till drawer

1. AReordering is triggered before shelves empty
2. BPrices can be raised without notice
3. CSuppliers are paid a great deal faster than before
4. DThe store needs fewer checkout tills

1. ASending wage slips to employees each month
2. BSending orders and invoices between firms automatically
3. CSending advertising messages to every loyalty card holder
4. DSending sales figures to the tax authority

1. AA saving on the cost of card payments
2. BA guarantee that the customer will return to the store
3. CA higher price on every item sold
4. DA record linking purchases to a named customer

1. AHow to word the company's annual report
2. BHow to staff each shift and lay out the store
3. CHow much to charge the suppliers for shelf space
4. DHow to depreciate the store's fixed assets

1. AStaff cannot be trained on the same system twice
2. BThe law requires new systems every five years
3. CHardware and software become obsolete quickly
4. DSuppliers refuse to trade with older systems

1. AA power or system failure stops all trading
2. BSuppliers gain access to all the sales figures
3. CStock records become too detailed to read
4. DCustomers will refuse to use a card

1. ATo publish the data in the annual accounts
2. BTo share the data with its main suppliers
3. CTo delete the data at the end of each day
4. DTo keep the data secure and confidential

1. AThey are paid less while training takes place
2. BThey must buy the equipment themselves
3. CThey fear redundancy and the loss of skills
4. DThey lose their entitlement to a pension

1. AMore reports are produced than anyone reads
2. BReports arrive far later than they are needed
3. CThe data entered is inaccurate
4. DThe system runs out of storage space

1. AEvery serious rival already operates them
2. BThey are supplied free by the government
3. CThey cannot be adapted to a single firm
4. DThey cost far more than they can ever return

1. ACard payment removes the need for staff
2. BCameras and electronic tags deter theft
3. CLoyalty cards identify honest customers
4. DBarcodes lower the price of the goods

1. ATo cover late delivery or a surge in demand
2. BTo take advantage of a bulk purchase discount
3. CTo allow the firm to sell at a lower price
4. DTo reduce the cost of insuring the store

1. AThe reorder level is unaffected by it
2. BThe reorder level must be set lower
3. CThe reorder level must be set higher
4. DThe reorder level falls to zero

1. AWages against the cost of materials
2. BFixed costs against variable costs
3. COrdering costs against holding costs
4. DSelling prices against buying prices

1. AThe discount lost on a large bulk purchase
2. BThe cost of placing each fresh order
3. CWarehouse rent, insurance and security
4. DThe sales lost when an item runs out

1. ARanks items by the date they were received
2. BConcentrates control on the high value items
3. COrders every item in the same quantity
4. DGroups items by the supplier each of them comes from

1. AThe product perishes within a few days
2. BThe product is expensive to insure
3. CThe product cannot be sold on credit terms
4. DThe product is bought only in winter

1. AThe value added tax charged on each sale
2. BThe value of the stock held at the year end
3. CThe function each part performs and its cost
4. DThe value of the firm's shares on the market

1. AWhether the customer values what it buys
2. BWhether the part was designed most recently
3. CWhether the part is the heaviest in the product
4. DWhether the supplier agrees to the change

1. AThe design department can be closed down
2. BFewer part numbers to buy, stock and fit
3. CEvery product must then be made to order
4. DEach product becomes heavier to transport

1. AThe design team refuses to work on it
2. BThe product becomes a great deal more expensive to make
3. CThe product is cheapened and the brand suffers
4. DThe firm must retool its whole factory

1. AProducts that have just been discontinued
2. BOne off pieces made to a customer's order
3. CProducts bought in and resold unchanged
4. DStandard products made in high volume

1. AThe design team works far more cheaply than production
2. BThe cost is removed before any tooling is committed
3. CThe firm can then charge a higher price
4. DThe customer is asked to approve the changes

1. AShareholders, lenders and the tax authority
2. BThe production supervisors on each shift
3. CDepartmental managers inside the business
4. DThe employees of the marketing department

1. AThe standard costings
2. BThe departmental budgets
3. CThe management accounts
4. DThe financial accounts

1. AFinancial looks forward, management largely looks back
2. BBoth look forward over the coming year
3. CFinancial looks back, management largely looks forward
4. DBoth look back over the year just ended

1. ABoth are produced once a year for the whole firm
2. BManagement accounts are more frequent and more detailed
3. CBoth are produced monthly for each department
4. DManagement accounts are less frequent and less detailed

1. AThe law forbids exact internal figures
2. BAn approximate figure now beats an exact one later
3. CManagers are not permitted to see exact figures
4. DApproximate figures are cheaper to audit

1. AThe initial capital cost of the project
2. BCosts and benefits falling on third parties
3. CThe interest charged on the money borrowed
4. DThe running costs of the completed works

1. ACommunities displaced by the flooded land
2. BThe wages paid to the construction workers
3. CThe interest paid on the construction loan
4. DThe cost of the turbines that are installed

1. AThe electricity sold by the operator
2. BFlood control for farms downstream
3. CThe salaries earned by the engineers
4. DThe rent charged for the dam wall

1. AThe rate decides how much the dam will cost
2. BThe rate changes the volume of water stored
3. CThe rate is fixed by the contractor building it
4. DCosts fall now and benefits run for decades

1. AThe technique cannot handle capital costs
2. BThe results cannot be expressed in money
3. CIt cannot be applied to a public project
4. DMany items have no market price at all

1. AThat the project needs government approval
2. BThat the gainers and the losers are different people
3. CThat the project will take many years to build
4. DThat the project has a positive present value

1. AAs information to inform a political judgement
2. BAs a precise forecast of the final outcome
3. CAs a binding instruction to build the project
4. DAs a substitute for consulting affected people

1. ASpreading an asset's cost over its useful life
2. BThe loss made when an asset is sold too cheaply
3. CSetting cash aside to replace a worn out asset
4. DThe fall in the market price of a company share

1. AGoing concern
2. BConsistency
3. CPrudence
4. DMatching, or accruals

1. AProfit is understated and so are the assets
2. BProfit is overstated and the assets understated
3. CProfit is overstated and so are the assets
4. DProfit is understated and the assets overstated

1. AAn increase in the price of raw materials
2. BA rise in the rate of company tax
3. CBetter technology making it obsolete
4. DA fall in the firm's sales revenue

1. AIt is added back to the profit for the year
2. BIt is paid over to the tax authority
3. CIt is charged only in the final year of life
4. DIt is a book entry, not a fund of cash

1. ASelling shares in a company to its own employees
2. BTransferring a state enterprise to private ownership
3. CDividing a large company into smaller units
4. DTransferring a private company to state ownership

1. AThe government keeps the yearly dividend
2. BThe workforce is transferred to the state
3. CThe subsidy ends and the firm pays tax
4. DThe state takes over the firm's debts

1. AAn exemption from the country's tax law
2. BA promise to keep prices unchanged
3. CA guarantee that no jobs will be lost
4. DCapital, technology and management skill

1. AThe new owner cannot raise any capital
2. BA private monopoly replaces a public one
3. CThe state keeps all the voting shares
4. DThe service must then be given away free

1. AAn increase in the subsidy paid by the state
2. BJob losses and withdrawal of unprofitable services
3. CA fall in the prices charged to every customer
4. DA transfer of the assets back to the state

1. AThe state must repay the money within ten years
2. BThe proceeds may only be spent on public debt
3. CThe buyer pays the purchase price in instalments
4. DThe state sells a continuing income for a single sum

1. AThe removal of every form of regulation
2. BThe change of ownership by itself
3. CThe sale of the assets at a low price
4. DCompetition and a hard budget constraint

1. AA list of the directors and their salaries
2. BA summary of the firm's accounting policies
3. CA record of the meetings held before launch
4. DA short overview written last and placed first

1. ACash flow forecast, projected accounts and break even
2. BThe wording of the advertisements to be placed
3. CThe layout of the premises and the machinery
4. DJob descriptions for every post to be filled

1. AThe disciplinary procedure for employees
2. BThe insurance cover taken out on the premises
3. CEvidence on the market and the intended mix
4. DThe depreciation policy for the fixed assets

1. AIt guarantees the forecast will be met
2. BIt shows how the firm will meet what could go wrong
3. CIt removes the need for insurance cover
4. DIt transfers the risk to the lender

1. AIt fixes the prices for the first year
2. BIt forces the venture to be thought through
3. CIt protects the idea from being copied
4. DIt registers the business with the state

1. ANegotiation between an employer and worker representatives
2. BA complaint raised by one employee with a manager
3. CA decision handed down by an outside arbitrator
4. DA vote taken among employees on a pay offer

1. AA mediator helps the parties agree, and imposes nothing
2. BA mediator hands down a decision that binds both
3. CA mediator is appointed only by the employer
4. DA mediator represents the employees in the dispute

1. ARepresents the employer against the workers
2. BDismisses the employee found to be at fault
3. CActs as an impartial conciliator between the sides
4. DFixes the wage rate the employer must pay

1. AA record of the warnings given to an employee
2. BA list of the rules employees must obey at work
3. CA known route for an employee to raise a complaint
4. DA meeting held to negotiate the yearly pay rise

1. AA fine deducted from the employee's wage
2. BA ballot of the whole workforce
3. CImmediate dismissal for a first offence
4. DWarnings and a right of appeal

1. AIt takes longer but produces a lasting settlement
2. BIt hands the decision to an outside arbitrator
3. CIt settles the matter faster and more cheaply
4. DIt avoids the issue until it disappears

1. AFormal procedures are forbidden in a small firm
2. BArbitration is the cheapest route for a small firm
3. CConsultation and fair rotas stop most conflict arising
4. DEmployees in a small shop cannot raise a grievance

1. AFalls in cost per unit as output grows
2. BRises in total cost as output grows
3. CRises in the profit earned on each sale
4. DFalls in the price charged to customers

1. AA cheaper loan because the firm is large
2. BAn advertising campaign spread over more units
3. CA discount won by ordering in bulk
4. DA specialised machine kept fully employed

1. ABulk orders earn discounts and better terms
2. BIt pays its suppliers later than small firms
3. CIt buys from a larger number of suppliers
4. DIt holds no stock of raw materials at all

1. ALarge firms are exempt from paying interest
2. BLarge firms borrow for shorter periods
3. CLenders see less risk and more collateral
4. DThe law caps the rate charged to large firms

1. AA fall in unit cost as an organisation grows
2. BA rise in total revenue when output rises
3. CA rise in unit cost as an organisation grows too large
4. DA fall in total output when prices are cut

1. AThe largest output the market will absorb
2. BThe smallest output a factory can produce
3. CThe output at which unit cost stops falling
4. DThe output at which the firm breaks even

1. ACheaper finance than a large competitor
2. BGreater bargaining power with suppliers
3. CA lower cost per unit than any rival
4. DFlexibility and closeness to its customers

1. AThey are exempt from employment law
2. BThey pay higher wages than large firms
3. CThey create jobs at a low capital cost each
4. DThey employ only skilled professional staff

1. ASuppliers will not deliver to small firms
2. BCustomers refuse to buy from small firms
3. CLenders will not finance them on fair terms
4. DSmall firms are barred from exporting

1. AThrough cooperatives and bulk buying groups
2. BThrough employing more part time workers
3. CThrough holding much larger stocks of goods
4. DThrough raising the prices that they charge

1. AIt concentrates production in fewer hands
2. BIt restrains monopoly and widens choice
3. CIt removes the need for any regulation
4. DIt raises the prices charged to consumers

1. AHairdressing
2. BHousehold plumbing
3. CTailoring
4. DCement manufacture