Business Studies Paper 2 November 2025

1. AOnline marketing
2. BPersonal selling
3. CDirect exporting
4. DPublic relations

1. ASpending on repaying interest charged by a lender
2. BSpending on stock bought in order to be resold
3. CSpending on fixed assets used over several years
4. DSpending on wages, fuel and other running costs

1. AElectricity used in the yard
2. BWages paid to shop assistants
3. CCement bought in order to resell
4. DPurchase of a delivery truck

Answer this when you sit the paper.

Answer this when you sit the paper.

1. ALand to develop, because its initial outlay is the smaller
2. BPurchasing equipment, because its cash inflows arrive earlier
3. CLand to develop, because its net present value is higher
4. DPurchasing equipment, because gold earns foreign currency

1. AIt is quicker to work out than the payback period
2. BIt removes the need to forecast any future cash flows
3. CIt gives an answer as a percentage rather than in dollars
4. DIt counts the cash flows of the project's whole life

1. AThe rate of inflation only
2. BThe cost of the fixed asset
3. CThe time value of money
4. DThe rate of company taxation

1. AIt lowers the tax rate charged on companies
2. BIt raises the country's rate of interest
3. CIt reduces the country's rate of inflation
4. DIt creates jobs directly and at suppliers

1. ARemoving the need to pay company tax
2. BReducing the world price of gold
3. CCutting the cost of all imported machinery
4. DEarning more foreign currency per tonne

1. AReduced spending on public services
2. BLower interest rates on public borrowing
3. CHigher corporate and income tax receipts
4. DA larger money supply in circulation

1. ADepreciation of the processing plant
2. BWages paid to the plant's employees
3. CWater and soil polluted by chemicals
4. DInterest charged on the project loan

1. AThe firm is small relative to the whole economy
2. BInvestment projects are taxed at a higher rate
3. CEmployment figures exclude private sector jobs
4. DNew plants are usually built outside the country

1. AThe laws a firm must obey when it trades abroad
2. BThe moral principles guiding a firm's conduct
3. CThe rules a firm sets for its own pricing policy
4. DThe profit a firm aims to earn in a trading year

1. AIt keeps customers, so sales are protected
2. BIt removes the firm's obligation to pay tax
3. CIt allows the firm to ignore consumer law entirely
4. DIt fixes the price the firm is able to charge

1. ARent charged on the firm's business premises
2. BRecruitment cost, because fewer staff leave
3. CInterest charged on the firm's overdraft
4. DThe cost of raw materials bought in bulk

1. AThe chance that a supplier delivers late
2. BA rise in the price of its raw materials
3. CFines and legal action against the firm
4. DA fall in the market rate of interest

1. APractising price discrimination between markets
2. BUsing ethics to differentiate and charge a premium
3. CCutting its costs through economies of scale in buying
4. DOperating a cartel with its main competitors

1. AIs appointed by the board to chair its meetings
2. BHolds the most senior position in the hierarchy
3. CIs elected by shareholders at the annual meeting
4. DIs followed for expertise rather than for rank

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

1. AThey are legally accountable for the change
2. BTheir support lowers resistance among workers
3. CThey can order workers to accept the change
4. DThey are able to alter the terms of employment

1. ABy setting their wage and their hours of work
2. BBy writing their contract of employment
3. CBy coaching them and introducing them to the group
4. DBy deciding whether they pass their probation

1. AA quality circle agreement
2. BA collective bargaining deal
3. CA restrictive group output norm
4. DA formal production target

1. AIt replaces the firm's formal structure entirely
2. BIt cannot be exercised without a formal title
3. CIt carries no accountability for its results
4. DIt is exercised only during working hours

1. AIgnore them until their influence fades away
2. BConsult them and involve them in decisions
3. CMove them to a branch with fewer staff
4. DDismiss them so formal authority is protected

1. ATo extend the shelf life of the food
2. BTo reduce the weight of each package
3. CTo raise the price charged for each unit
4. DTo lower the rate of tax charged on it

1. AThe supplier's yearly profit figure
2. BIngredients, weight and expiry date
3. CThe wages paid to its production staff
4. DThe name of the delivery firm used

1. AIt keeps the product safe from spoilage
2. BIt carries the batch number used in recalls
3. CIt reduces the cost of transporting goods
4. DIts design attracts attention on the shelf

1. ATo avoid paying duty on larger packages
2. BTo suit different customer needs and budgets
3. CTo reduce the number of suppliers used
4. DTo meet a legal limit on package weight

1. AIt shortens the distance to the customer
2. BIt lowers the fuel price paid by hauliers
3. CRegular shapes stack and palletise easily
4. DIt removes the need to insure the load

1. AWriting costs less than speaking to the worker
2. BA written record can be produced as evidence
3. CWriting avoids the need to inform the trade union
4. DA letter always reaches the worker more quickly

1. AA public address announcement
2. BAn item in the monthly newsletter
3. CA letter to each employee's home
4. DA memo posted later that week

1. AAn announcement at a full staff meeting
2. BA message in the works group chat
3. CA notice on the staff noticeboard
4. DA private face to face meeting

1. AIt removes the need for a written agenda
2. BIt provides a signed and legal record
3. CIt reaches customers as well as staff
4. DIt costs far less in travel and time

1. AA short announcement over the radio
2. BA poster displayed in each workshop
3. CA telephone call to each engineer
4. DA written report they are able to study

1. AA notice pinned to the staff board
2. BA two way medium such as a meeting
3. CA circular sent to every department
4. DA press advertisement in a newspaper

1. ADistant receivers cannot be sent written messages
2. BLarger audiences can always be reached at a lower cost
3. CA scattered workforce cannot all attend one meeting
4. DA large audience removes the need for any feedback

1. AWhether the receiver understands and acts
2. BWhether the sender finds it convenient
3. CWhether it is the cheapest one available
4. DWhether it is the firm's usual method

Answer this when you sit the paper.

1. ATechnical
2. BManagerial
3. CFinancial
4. DPurchasing

1. AMarketing
2. BPurchasing
3. CRisk bearing
4. DTechnical

1. AManagerial
2. BFinancial
3. CExternal
4. DTechnical

1. AInterest rates fall as output rises
2. BBanks are required to lend to large firms
3. CLarge firms pay no interest on borrowing
4. DLenders see less risk and more collateral

1. ATechnical
2. BPurchasing
3. CManagerial
4. DMarketing

1. ATechnical
2. BRisk bearing
3. CMarketing
4. DFinancial

1. ADiseconomies of scale
2. BExternal economies of scale
3. CEconomies of scope
4. DInternal economies of scale

1. AThe firm employs more specialist managers
2. BWorkers are given fewer tasks to perform
3. CMessages pass through more layers and distort
4. DOutput per worker rises with the scale

1. APromotion routes are removed by growth
2. BWages must be cut as output rises
3. CTraining is forbidden above a set size
4. DWorkers feel remote from management

1. AThe minimum efficient scale
2. BThe optimum selling price
3. CThe break even output level
4. DThe margin of safety

1. AThey must be paid whatever the output is
2. BThey fall automatically as sales decline
3. CThey are refunded in full by the supplier
4. DThey vary directly with the units produced

1. AHairdressing
2. BSteel production
3. CCement making
4. DMotor assembly

1. ADiversification
2. BMarket development
3. CProduct development
4. DMarket penetration

1. ADiversification
2. BMarket penetration
3. CMarket development
4. DProduct development

1. AMarket development
2. BDiversification
3. CProduct development
4. DMarket penetration

1. AMarket development
2. BDiversification
3. CMarket penetration
4. DProduct development

1. AThe firm must always sell its existing assets
2. BThe cost of borrowing rises with each strategy
3. CCompetition law forbids the later strategies
4. DThe firm knows less about the product and market

1. AEfficiency is least input, effectiveness is meeting objectives
2. BBoth describe producing the largest possible output
3. CBoth describe keeping the wage bill as low as it can be
4. DEfficiency is meeting the objectives set, effectiveness is least input

1. ACost plus pricing
2. BKaizen
3. CJob production
4. DJust In Time

1. ABenchmarking
2. BKanban
3. CKaizen
4. DDelegation

1. AFaults are corrected after the goods are sold
2. BFaults are prevented rather than found later
3. COnly the finished goods are checked for faults
4. DQuality is checked by an outside inspector

1. AFixed costs are spread over more units
2. BVariable costs per unit begin to fall
3. CThe selling price per unit rises
4. DWages paid per worker are reduced

1. AWorkers accept lower pay for the same work
2. BThe fixed costs of the factory are reduced
3. CWorkers work faster and make fewer errors
4. DThe firm can charge a higher selling price

1. APiece rate pay
2. BJob enrichment
3. CProfit sharing
4. DAn annual bonus

1. AStorage costs rise as stock is held longer
2. BBulk buying discounts become much larger
3. CThe quality of finished goods improves
4. DA late supplier halts production at once

1. ACalculating the net present value
2. BPreparing the feasibility study
3. CImplementing the agreed project plan
4. DIdentifying the project idea

1. ATo appoint the contractors who will build it
2. BTo sift ideas before a detailed study
3. CTo measure the project after it is complete
4. DTo raise the finance needed for the project

1. ALegal
2. BTechnical
3. CMarket
4. DFinancial

1. ARecruitment
2. BIdea generation
3. CFinancial appraisal
4. DImplementation

1. ATo raise more capital for a second project
2. BTo set the price at which the output is sold
3. CTo choose between competing project ideas
4. DTo compare the results with what was planned

Answer this when you sit the paper.

1. AAn embargo
2. BA subsidy
3. CA quota
4. DA tariff

1. AAn excise duty
2. BAn embargo
3. CAn exchange control
4. DA quota

1. AIt shields it from cheaper foreign goods
2. BIt guarantees that the firm makes a profit
3. CIt removes the need for it to advertise
4. DIt lowers the cost of its imported inputs

1. AExport prices rise on world markets
2. BLess foreign currency leaves the country
3. CInterest rates fall for local borrowers
4. DLocal wages rise faster than local prices

1. AThey borrow only from foreign banks
2. BThey pay their wages in foreign currency
3. CThey import materials, parts and machinery
4. DThey sell most of their output overseas

1. AThey lose access to those markets
2. BThey gain a larger share of them
3. CThey pay less duty on their inputs
4. DThey receive higher export subsidies

1. AIt must export a share of its output
2. BIt never has to become competitive
3. CIt is forced to cut its selling prices
4. DIt grows too quickly for its market

1. AWhether it buys its inputs locally or abroad
2. BHow long the firm has been trading
3. CThe size of its board of directors
4. DThe legal form the business has taken

1. AThe fare must equal the cost of one ticket
2. BThe fare is fixed by the bus manufacturer
3. CThe fare is set by the number of seats
4. DThe fare must cover cost and leave a margin

1. AIt fixes the interest rate charged on a loan
2. BIt compares the relevant costs of each option
3. CIt removes the risk from the decision
4. DIt shows the market value of the vehicle

1. AIt sets the wages paid to the drivers
2. BIt decides which routes are served
3. CIt shows where money is being lost
4. DIt values the fleet for the accounts

1. AThe number of buses owned by the firm
2. BTotal revenue and the rate of tax
3. CFixed costs and contribution per passenger
4. DThe distance the route covers each week

1. AThe school will not accept a written quote
2. BThe contract must be priced by the council
3. CThe price quoted could fall below cost
4. DThe operator cannot buy fuel without it

1. AA notice pinned to a board
2. BA letter posted to a client
3. CAn email sent to a client
4. DA telephone call to a client

1. ATone and manner build trust with guests
2. BIt costs more than a printed letter would
3. CIt gives the guest a written record
4. DIt removes the need for trained staff

1. AA permanent record of it is created
2. BA large scattered audience is reached
3. CFeedback is immediate and doubts are cleared
4. DThe message can never be misunderstood

1. AThe matter can be settled in one exchange
2. BIt allows the firm to delay its reply
3. CIt provides evidence for a later dispute
4. DIt avoids the need to refund the customer

1. AIt needs no stationery or postage
2. BIt is exempt from company taxation
3. CIt is paid for by the customer
4. DIt requires no staff to be present

1. AThere is no record if a dispute arises
2. BIt reaches only the firm's own staff
3. CIt must be repeated to be understood
4. DIt takes longer than writing a letter

1. AEach listener writes the message down first
2. BThe message is translated by a manager
3. CDetail and figures are forgotten on the way
4. DThe sender repeats it to every listener

1. AA long contract with detailed terms
2. BAn apology for a short delay
3. CA greeting to a regular customer
4. DAn instruction to one team member

1. AConfirm the main points in writing
2. BRecord it on the customer's receipt
3. CRepeat it at the next staff meeting
4. DLeave the customer to make a note

1. ARevenue, costs and profit for a period
2. BCash received and paid in a period
3. CAssets and liabilities on a single date
4. DShares issued since the firm began

1. ARevenue less the capital employed
2. BRevenue less cost of sales
3. CRevenue less all of the expenses
4. DNet profit less the taxation charge

1. AThe amount of share capital issued
2. BThe value of the firm's premises
3. CThe number of shareholders on the register
4. DPricing and the control of expenses

1. ACustomers
2. BEmployees
3. CSuppliers
4. DShareholders

1. ATo value the land the business owns
2. BTo count the cash held at the bank
3. CTo check how many staff it employs
4. DTo see if trading can cover the interest

1. ATo value the shares they may buy
2. BTo set the rate of company taxation
3. CTo decide the firm's credit terms
4. DAs evidence supporting a wage claim

1. AZIMRA
2. BThe stock exchange
3. CThe Reserve Bank
4. DThe registrar of companies

1. AIt decides the delivery route used
2. BIt fixes the discount the supplier gets
3. CA profitable customer is likely to pay
4. DIt sets the price of the goods sold

1. AIt is prepared only for the firm's owners
2. BIt reports a period that is already past
3. CIt is checked by an external auditor first
4. DIt is written in money terms throughout

1. AThe firm has no fixed assets left
2. BThe reported profit figure must be wrong
3. CProfit is not the same thing as cash
4. DThe firm has issued too many shares

1. AThey must publish on the very same date
2. BThey pay exactly the same rate of tax
3. CThey employ different numbers of staff
4. DThey may use different accounting policies

1. AThe gross profit earned in the year
2. BCustomer satisfaction and staff morale
3. CThe expenses charged against revenue
4. DThe revenue earned from trading

1. AMoney values are not measured alike
2. BExpenses are left out of the statement
3. CSales are recorded when cash is paid
4. DProfit is calculated after taxation

1. AIt applies only to private companies
2. BIt values social costs and benefits too
3. CIt ignores the cost of the project itself
4. DIt uses accounting profit rather than cash

1. AThe cost of the concrete used
2. BThe wages paid to the builders
3. CInterest on the construction loan
4. DIrrigation water for nearby farms

1. AThe salary paid to the site engineer
2. BThe fee charged by the surveyor
3. CCommunities displaced by the flooding
4. DThe price paid for the turbines

1. AIt puts both on a common money basis
2. BIt measures only the cash the state spends
3. CIt removes the need to discount at all
4. DIt shows which of the two costs less

1. AThe benefits run for decades after the costs
2. BMoney loses value only while building goes on
3. CDiscounting removes the risk of an error
4. DThe benefits are received before the costs

1. AThe cash left over once the project ends
2. BTime taken to recover the initial outlay
3. CTotal profit earned over the project's life
4. DThe rate at which the outlay is discounted

1. AIt cannot be used on short projects
2. BIt ignores cash flows after payback
3. CIt is difficult for managers to grasp
4. DIt needs a discount rate to be chosen

1. AAverage annual profit over the investment
2. BOutlay divided by the annual cash inflow
3. CThe discount rate that gives a zero result
4. DTotal cash inflow less the initial outlay

1. AIt leaves out the later years' figures
2. BIt requires a cost of capital first
3. CIt cannot be shown as a percentage
4. DIt ignores the timing of the returns

1. ANegative
2. BPositive
3. CZero
4. DFalling

1. AThe rate at which its NPV becomes zero
2. BThe profit it earns in its first year
3. CThe firm's actual cost of borrowing money
4. DThe time it takes to repay the outlay

1. AIt needs a cost of capital to be set
2. BIt takes no account of project size
3. CIt uses accounting profit and not cash
4. DIt ignores the time value of money

1. ANet present value
2. BPayback period
3. CInternal rate of return
4. DAverage rate of return

1. AThe introduction given to a new employee
2. BA course run for long serving managers
3. CRetraining after a change of machinery
4. DTraining given just before a promotion

1. AIt replaces the need for any supervision
2. BIt lowers the cost of the firm's stock
3. CSafety rules change every trading week
4. DThe worker meets the risk on day one

1. AIt shortens the notice period required
2. BFewer new starters leave in the first weeks
3. CIt cuts the wages paid to new staff
4. DIt removes the need to advertise posts

1. ATo prevent misunderstanding and disputes
2. BTo fix the wage the worker will be paid
3. CTo decide which branch the worker joins
4. DTo measure the worker's output per hour

1. ASo each branch can set its own rules
2. BSo stock is counted in the same way
3. CSo every branch treats customers alike
4. DSo staff can be paid according to results

1. AWorkers are paid according to their output
2. BFinished goods are delivered automatically
3. CDesigns are tested on screen before cutting
4. DMaterials are ordered without a supplier

1. ASets the selling price of the output
2. BRecruits the operators for each shift
3. CSchedules jobs and shows bottlenecks
4. DValues the closing stock for the accounts

1. AIt removes the need to use suppliers
2. BIt fixes the price of the raw materials
3. CIt stores a larger buffer of materials
4. DIt tracks materials and reorders in time

1. AIt inspects only the finished goods
2. BIt shows the process drifting in time
3. CIt scraps every unit that is produced
4. DIt replaces the need for any machine

1. AThe market share held by the whole firm
2. BThe interest rate charged on its loans
3. CDaily output, downtime and waste figures
4. DThe wages agreed with the trade union

1. AInterviewing new machine operators
2. BA repetitive and dangerous task
3. CSetting the year's output target
4. DNegotiating terms with a supplier

1. AThe cost is high and payback is slow
2. BIt raises the variable cost of each unit
3. CIt cannot be used with lean methods
4. DOutput per worker falls immediately

1. AData entered becomes more accurate
2. BA power cut can halt the whole line
3. CStaff need no training at all to use it
4. DIt reduces the need for any maintenance