Business Studies Paper 2 November 2023

1. ADownsizing
2. BDiversification
3. CDelegation
4. DDivestment of a subsidiary company

Answer this when you sit the paper.

Answer this when you sit the paper.

1. ARoses and Jurantas are sold in exactly equal volumes across the year
2. BJurantas is held in stock for longer and is sold through less often than Roses
3. CJurantas generates more cash sales than Roses across the year
4. DRoses has a lower average stock value than Jurantas in dollar terms

1. AGuaranteed higher total sales revenue across both branches
2. BAutomatic removal of the need for any stock control at all
3. CLower fixed and operating costs from running a simpler operation
4. DA legal exemption from preparing financial statements in future

1. AThe company's remaining variety immediately becomes unprofitable
2. BThe company can no longer sell any flowers on credit to its customers
3. CThe company loses customers who specifically wanted the discontinued variety
4. DThe company is legally required to close all of its branches at once

1. AIt can only be used by companies that are listed on a stock exchange
2. BIt removes the need for Chris to gather any accounting information first
3. CIt is only reliable if the probabilities and figures fed into it are accurate
4. DIt cannot be drawn for any decision involving more than one branch

1. AEmployers' import tariffs are automatically reduced in response
2. BEmployers gain an automatic subsidy equal to the wage increase
3. CEmployers are exempted from paying corporate tax that year
4. DEmployers' wage costs rise, raising their overall cost of production

1. ATo force all new manufacturers to relocate outside the country
2. BTo encourage new investment by lowering its early-year tax burden
3. CTo raise the price of imported manufacturing equipment
4. DTo discourage any further investment in the manufacturing sector

1. AThe business is no longer required to pay any tax on its imports
2. BThe business's exchange rate risk disappears entirely under the new rules
3. CIt becomes harder and more costly for the business to pay overseas suppliers
4. DThe business automatically receives a subsidy on its imported materials

1. AThe annual financial statements
2. BThe company's marketing plan
3. CThe Memorandum of Association
4. DThe Articles of Association

1. AThe Articles of Association
2. BThe Memorandum of Association
3. CThe company's bank statement
4. DThe Certificate of Incorporation

1. AThe prospectus
2. BThe Certificate of Incorporation
3. CThe trading licence
4. DThe Articles of Association

1. AOne-way, top-down, with limited opportunity for staff feedback
2. BTwo-way, with extensive staff feedback sought before every decision
3. CNot at all, since autocratic leaders avoid issuing any instructions
4. DOnly through informal social gatherings outside working hours

1. AIt can slow decision making down compared with a top-down approach
2. BIt removes the leader's ability to communicate with staff at all
3. CIt makes every decision illegal under company law
4. DIt guarantees staff will never disagree with the final decision

1. AIt widens the market the business can reach at relatively low cost
2. BIt guarantees the business will be paid in its home currency only
3. CIt eliminates the need for the business to ship physical goods
4. DIt removes any need for the business to comply with import regulations

1. AThe import tariffs the business pays on goods it brings in
2. BThe speed and clarity of communication across different time zones
3. CThe legal ownership structure of the business itself
4. DThe exchange rate the business is charged on its transactions

1. AA guaranteed increase in import tariffs charged by every trading partner
2. BThe automatic loss of its limited liability protection
3. CA legal requirement to stop trading with any country lacking ICT
4. DThe risk of cyber-security breaches and the cost of reliable connectivity

1. AIt replaces the need for the firm to set any objectives for staff
2. BIt identifies training needs and provides a fair basis for pay and promotion
3. CIt removes the need for the firm to ever recruit new staff again
4. DIt guarantees every appraised employee receives a pay increase

1. AIt removes the need for supervisors to monitor future performance
2. BIt can itself motivate staff by showing their work is noticed and valued
3. CIt legally obliges the firm to double the employee's basic wage
4. DIt guarantees the employee will never leave the organisation

1. AIt is the only method of pay permitted under labour law
2. BIt guarantees the same pay to every worker regardless of output
3. CIt removes the need for the firm to check the quality of output
4. DIt directly links each worker's pay to their own measurable output

1. AA further, larger increase in the same piece rate already offered
2. BRemoval of all financial incentives currently paid to workers
3. CA reduction in the firm's total workforce to cut wage costs
4. DMotivators such as recognition, responsibility and job satisfaction, not just pay

1. AQuota sampling
2. BConvenience sampling
3. CJudgement sampling
4. DRandom sampling

1. AQuota sampling
2. BRandom sampling
3. CSystematic sampling
4. DStratified sampling

1. AConvenience sampling
2. BQuota sampling
3. CStratified sampling
4. DCluster sampling

1. AExternal communication
2. BInformal communication
3. CFormal communication
4. DVertical communication

1. AGuarantee that every rumour passed along it is completely accurate
2. BRemove the risk of staff ever feeling excluded from decisions
3. CSpread information quickly and surface problems management has not yet heard
4. DReplace the need for any formal communication channels in the business

1. AJob evaluation
2. BPerformance appraisal
3. CWork measurement
4. DMethod study

1. AMethod study
2. BMarket research
3. CWork measurement
4. DBreak-even analysis

1. AThe exchange rate between the firm's trading currencies
2. BThe nature of the product, since perishable goods need a short, fast channel
3. CThe cost of alternative advertising media
4. DThe firm's preferred leadership style

1. ACompliance with a legal requirement to avoid wholesalers
2. BElimination of any need to hold finished goods in stock
3. CGreater control over how its product is displayed and sold
4. DThe lowest possible cost of distribution in every case

1. AAn automatic increase in the business's stock turnover ratio
2. BExemption from paying tax on the sales it does make
3. CA guaranteed fall in the business's fixed costs
4. DLost sales and possible damage to customer goodwill

1. AOrdering costs are paid entirely by the supplier rather than the business
2. BOrdering costs fall, since urgent orders always qualify for a bulk discount
3. COrdering costs are unaffected by how often or how urgently stock is ordered
4. DOrdering costs rise, since urgent, frequent small orders are more expensive than planned bulk orders

1. AIt fixes the exact number of cars the company will sell in its first year
2. BIt reduces the risk of an expensive launch failure by testing demand and pricing first
3. CIt guarantees the new model will outsell every competitor's model
4. DIt removes the need for the company to advertise the new model at all

1. AMarket research removes the need for the company to set a selling price
2. BResearch cannot fully predict how the market will respond once the car is actually on sale
3. CMarket research is illegal for any company in the car manufacturing industry
4. DMarket research always costs more than the launch of the new model itself

1. AWindow dressing of the financial statements
2. BA change in the business's legal structure
3. CA breach of the business's bank loan covenant
4. DA statutory audit requirement

1. AAccounting rules require every transaction to be reported in real time
2. BAccounting rules are entirely optional and firms may ignore them freely
3. CAccounting rules are rewritten by each individual company every year
4. DAccounting rules leave some room for judgement in valuing and timing items

1. AForming a more favourable view of the business's true financial position than is warranted
2. BBeing legally barred from ever reading the statements again
3. CAutomatically detecting the window dressing without further analysis
4. DLosing all rights to any dividend the business declares

1. AInterest on the debt is paid directly to the shareholders as extra dividend
2. BThe company's gearing automatically falls as a result
3. CThey keep full ownership and control, since no new shares are issued
4. DThe company is exempted from ever repaying the debt

1. AThe company is automatically released from its interest obligations that year
2. BInterest and capital repayments still fall due, straining the company's cash flow
3. CThe company's shareholders become personally liable for the company's debts
4. DThe lender is required to convert the debt into additional share capital

1. AIt differentiates the product from rivals and builds customer loyalty
2. BIt fixes the price of the product permanently at a level rivals cannot match
3. CIt removes the manufacturer's need to comply with food safety law
4. DIt guarantees the manufacturer the lowest production costs in the market

1. ABecause branding is a legal requirement only for easily copied products
2. BBecause branding physically prevents any rival from producing a similar drink
3. CBecause branding removes the need for the firm to hold a trademark
4. DBecause branding lets the firm justify a premium price a copied product cannot easily claim

1. AIt frees them to focus on strategic decisions rather than routine ones
2. BIt removes their legal responsibility for the organisation entirely
3. CIt guarantees every delegated decision will be made correctly
4. DIt eliminates the need for the organisation to train junior managers

1. ADelegation can lead to poor decisions if the delegate is not properly trained and monitored
2. BDelegation always increases the organisation's total wage costs
3. CDelegation removes the possibility of any decision ever being wrong
4. DDelegation is illegal wherever the delegate has not yet been promoted