Business Studies Paper 2 November 2024

1. AMass production
2. BBatch production
3. CJob production
4. DLean production

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AA rise in the maximum capacity of Jk Fashions Ltd's factory over the same period
2. BPoor employee morale and declining garment quality, while rivals invested in technology and lean methods
3. CA fall in the selling price per unit charged by Jk Fashions Ltd
4. DAn increase in the fixed costs the company had to cover each year

1. AIt removes the need for the firm to set any quality standards
2. BIt guarantees that capacity utilisation will return to 100% at once
3. CIt ensures departments work to a single, coordinated and coherent plan
4. DIt replaces the need for the firm to train its production workers

1. ANon-financial motivators always cost more than an equivalent pay rise
2. BNon-financial motivators guarantee an immediate return to 100% capacity utilisation
3. CNon-financial motivators take time to embed and work best alongside fair pay, not instead of it
4. DNon-financial motivators are illegal for a garment manufacturer to offer

Answer this when you sit the paper.

1. AThe financial projections
2. BThe executive summary
3. CThe marketing plan
4. DThe description of the business

1. AThe marketing plan
2. BThe management and staffing plan
3. CThe executive summary
4. DThe operations plan

1. AIts ability to meet short-term debts as they fall due
2. BThe tax rate it will be charged in the coming year
3. CThe total profit it earned over the last five years
4. DThe market price of its shares on the stock exchange

1. ARatios cannot legally be calculated for more than one year at a time
2. BThis comparison is impossible unless the firm's auditor recalculates every figure
3. CRatios calculated this way are always inaccurate regardless of the data used
4. DThe ratios are drawn from historic accounts and may not reflect current trading conditions

1. ATo remove the need for the company to be regulated at all
2. BTo secure national control over a strategic natural resource
3. CTo immediately exempt the company from all forms of taxation
4. DTo transfer the company's ownership to a single foreign investor

1. AThe firm's ability to set prices without any regulation
2. BThe right of a single shareholder to sell their shares privately
3. CThe jobs of the workers employed by the failing firm
4. DThe firm's freedom to relocate its operations abroad

1. AClear chains of command and narrow spans of control supporting close supervision
2. BAutomatic elimination of any need for delegation
3. CFaster decision making than any flatter structure could achieve
4. DLower total management costs than a structure with fewer layers

1. AIt removes the possibility of any employee ever being promoted
2. BIt is illegal for a public limited company to adopt this structure
3. CIt guarantees lower total staff costs than a flat structure
4. DMessages can be slowed or distorted as they pass through many layers

1. A$150 000 - $40 000 = $110 000 (adding the pay offs unweighted by probability)
2. B$100 000, ignoring the $40 000 set-up cost entirely
3. C$100 000 - $40 000 = $60 000
4. D$120 000 - $40 000 = $80 000 (ignoring the failure branch's loss)

1. AIt is legally binding once drawn and cannot be revisited
2. BIt automatically accounts for local competition and staff availability
3. CIt removes all risk from the decision once the branch is opened
4. DIt is only as reliable as the probability and pay off estimates used to build it

1. AIt hides the spread of possible outcomes behind one average figure
2. BIt means the firm must reject the option outright as unprofitable
3. CIt proves the branch will definitely make exactly $60 000 profit
4. DIt shows the decision tree method cannot be used for branch openings

1. ALaissez-faire leadership
2. BDemocratic leadership
3. CPaternalistic leadership only
4. DAutocratic leadership

1. ANo leadership at all, since the staff are inexperienced
2. BAutocratic leadership, giving clear, close direction
3. CLaissez-faire leadership, leaving staff to work out the task themselves
4. DA style chosen entirely at random by the manager

1. AA guaranteed increase in the bank's share price that year
2. BFewer compliance errors and improved adherence to financial regulation
3. CExemption from any future regulatory inspection or audit
4. DA permanent reduction in the bank's total staffing costs

1. ATraining automatically guarantees staff will remain with the firm
2. BTraining has no effect on a worker's value to any employer
3. CTraining is illegal for banks to provide to their own staff
4. DTraining raises a worker's value across the whole labour market, not just inside the firm that paid for it

1. AA private one-to-one meeting with every single customer
2. BNo communication, since interest rates are set by the central bank
3. CVisual communication, such as a chart or explanatory graphic
4. DA lengthy written legal document with no illustrations

1. AIt communicates efficiently with large numbers of customers at once
2. BIt replaces the need for the bank to employ any branch staff
3. CIt is a legal requirement under banking regulation in every country
4. DIt removes the customer's right to ask a staff member a question

1. AGuarantee that the forecast number of accounts will be opened
2. BPlan staffing, cash flow and resources ahead of expected demand
3. CRemove all uncertainty from the bank's future trading performance
4. DAvoid the need to review its forecast again during the quarter

1. AA new competitor entering the market has no effect on account opening at all
2. BSales forecasting is entirely useless and should never be attempted
3. CA forecast, once made, cannot legally be revised during the period it covers
4. DA forecast is an estimate based on past data and assumptions, which unexpected events can make inaccurate

1. ABanning exporters from selling to any market outside the region
2. BRemoving all trade agreements the country has negotiated with other states
3. CProviding export credit guarantee schemes to reduce exporters' risk of non-payment
4. DRaising import tariffs on all raw materials exporters need to buy

1. AIt fixes the exchange rate between the two countries permanently
2. BIt makes their goods cheaper and more competitive in that foreign market
3. CIt guarantees their goods will outsell every local competitor abroad
4. DIt removes their obligation to meet the foreign market's product standards

1. AUnethical practice can cause serious harm and destroy the trust the firm depends on with regulators and patients
2. BRegulators are legally unable to act against a firm once a medicine has been approved
3. CEthical conduct only matters to a drug manufacturer's marketing department
4. DFalsifying trial data has no real consequence as long as the medicine eventually works

1. AA guarantee that the manufacturer's market share will rise as a result
2. BSevere regulatory and legal consequences, including possible withdrawal of the product
3. CNo consequence, since marketing claims are not subject to regulation
4. DAn automatic increase in the price the manufacturer may charge for the drug

1. AThe margin of safety
2. BThe maximum capacity
3. CThe contribution margin
4. DThe break even point

1. AIt is an unrealistic simplification, since real prices and costs often change with output level
2. BIt means break even analysis can never be calculated for a cement company
3. CIt guarantees the cement company will always operate above break even
4. DIt removes the need for the company to know its fixed costs at all

1. AThe assumption is always true for every manufactured product
2. BCement cannot physically be stored under any circumstances
3. CIn reality, unsold cement can sit in stock, so the assumption may not hold
4. DThis assumption makes break even analysis impossible to calculate

1. ARetained earnings
2. BDebt factoring
3. CRights issue
4. DDebentures

1. AIt removes the business's need to ever issue an invoice again
2. BIt automatically increases the business's total sales revenue
3. CIt improves cash flow without the business taking on a traditional loan obligation
4. DIt guarantees the business will never have another cash flow problem

1. AThe cost of production, which sets a floor below which the firm makes a loss
2. BThe firm's wish to position itself as a premium brand
3. CA legal requirement to price at the lowest level in the market
4. DThe exchange rate between the firm's trading currencies

1. AThe number of employees the firm currently has
2. BThe firm's method of stock control
3. CThe firm's total fixed costs for the year
4. DThe price elasticity of demand for the product

1. AA guarantee that the country's currency will not change in value
2. BAutomatic forgiveness of all the country's existing debt
3. CConditions requiring fiscal or structural policy reform
4. DA requirement that the loan be spent only on military equipment

1. AImproved infrastructure that can lower transport costs and support trade
2. BA guaranteed increase in every local business's profit that year
3. CExemption from all future taxation for businesses using the road
4. DAutomatic ownership of the new road by private businesses

1. AJust-In-Time ordering only
2. BABC stock classification only
3. CComputerised/EPOS-linked stock control
4. DPeriodic manual stocktaking only

1. APeriodic stocktaking
2. BJust-In-Time ordering
3. CABC stock classification
4. DEconomic Order Quantity modelling only

1. ADebt factoring
2. BPeriodic stocktaking
3. CBreak even analysis
4. DJust-In-Time ordering