Business Enterprise Skills Paper 1 November 2018

1. Aa workforce left without training once it has been recruited.
2. Ba clear business plan setting out how the enterprise will operate.
3. Ca high rate of staff turnover that keeps the wage bill low.
4. Da refusal to change the product after customers' tastes shift.

1. AThe leadership style used by the enterprise's managers
2. BThe training programme the enterprise runs for its staff
3. CThe government's tax policy on business profits
4. DThe layout chosen for the enterprise's own factory

1. Awithdrawing training support from newly established enterprises.
2. Blimiting the number of new enterprises allowed to register each year.
3. Coffering low interest loans to small and medium enterprises.
4. Draising the rate of tax charged on the profits of small businesses.

1. Alegal risk from breaching the terms of its trading licence.
2. Bphysical risk from fire damage to its stock and premises.
3. Ccredit risk from customers failing to settle their accounts.
4. Dfinancial risk from the falling real value of its money.

Answer this when you sit the paper.

1. Acapabilities are the vehicles owned, while resources are the buildings used.
2. Bresources are the assets an enterprise holds, while capabilities are how well it uses them.
3. Cresources are the profits an enterprise earns, while capabilities are the taxes paid.
4. Dcapabilities are the assets an enterprise owns, while resources are skills.

1. Abear the risk of the venture and take the key decisions.
2. Bcollect the taxes the venture owes to the revenue authority.
3. Cgrant the trading licence that lets the venture operate.
4. Dset the market price at which every rival must sell.

1. Asets the selling prices the new enterprise will charge its customers.
2. Ballows a new enterprise to trade without paying tax on its profits.
3. Clowers the barriers that keep would be owners out of formal business.
4. Dobliges established firms to buy from the newly registered enterprise.

1. Adesigns an entirely new product name for the outlet it opens.
2. Bpays the franchisor a royalty and trades under its brand name.
3. Creceives a share of the profits earned by every other franchisee.
4. Dtakes over the debts of the franchisor as part of the agreement.

1. Aits shares may be sold only to the existing members of a family.
2. Bit cannot raise capital by selling shares to the general public.
3. Cit must publish its financial accounts for competitors to read.
4. Dits owners carry unlimited liability for the debts of the company.

1. Aan unincorporated enterprise is required to appoint a board of directors.
2. Ban incorporated enterprise has a legal identity separate from its owners.
3. Can incorporated enterprise is owned by one person who runs it alone.
4. Dan unincorporated enterprise must be listed on the stock exchange.

1. Abuilds a reputation that helps it keep customers and good staff.
2. Bremoves the cost of complying with health and safety rules.
3. Cshortens the time taken to deliver goods to distant markets.
4. Davoids paying any of the taxes charged on its trading profits.

1. Apay out all of its retained profit to the owners as drawings.
2. Braise its prices sharply so that each sale earns a larger margin.
3. Ccut its prices and its costs to hold on to enough customers.
4. Dopen several new branches in markets it has not traded in.

1. ACharging a lower price so as to reach a wider group of customers
2. BClosing the branches that are trading at their full capacity
3. CReducing the range of products offered to its loyal customers
4. DSelling the delivery vehicles used to reach its distant markets

1. Atraining the workforce in the skills the enterprise needs.
2. Bholding too little working capital to pay its day to day expenses.
3. Ckeeping accurate records of every sale made during the month.
4. Dresearching the market before deciding what product to sell.

1. Abuy a larger delivery vehicle so that more orders can be met.
2. Bgive customers longer credit periods so that sales keep rising.
3. Cprepare a cash budget and tighten the collection of debts.
4. Draise the wages paid to staff so that morale is kept high.

Answer this when you sit the paper.

1. AA bank loan taken out in order to buy new machinery
2. BProfit retained in the business at the end of the year
3. CThe sale of a machine the business no longer makes use of
4. DWorking capital released by running down inventory levels

1. A$60 200
2. B$80 000
3. C$99 800
4. D$179 800

1. Aa non-current asset held for use over several years.
2. Bpart of the capital that the owner has put into the business.
3. Ca current asset owed to the business by its customers.
4. Da current liability owed by the business to its suppliers.

1. ABuildings as a non-current asset and inventory as a current asset
2. BBoth as current assets, since both are used in day to day trading
3. CBoth as non-current assets, since both are owned by the business
4. DBuildings as a current asset and inventory as a non-current asset

1. Aissuing the trading licence it needs to open a new branch.
2. Bprinting the bank notes used in the country's economy.
3. Cproviding hire purchase and leasing facilities for equipment.
4. Dauditing its annual accounts before they are published.

1. Athe enterprise is excused from insuring the equipment it uses.
2. Bthe enterprise pays no charge at all for the use of the equipment.
3. Cthe enterprise spreads the cost and keeps its cash for trading.
4. Dthe enterprise becomes the legal owner of the equipment at once.

1. ARotating a worker between different jobs each week
2. BGiving a commission on each sale that is made
3. CLetting a worker choose their own working hours
4. DPraising a worker in front of the whole team

1. AResponsibility for running a section of the work
2. BThe pay and the working conditions offered by the job
3. CAchievement in finishing a difficult piece of work
4. DRecognition given to a worker for work done well

1. Aissues detailed instructions and expects them to be obeyed.
2. Bconsults the team and then takes the decision jointly with it.
3. Cchecks every decision taken by each member of the team.
4. Dgives the team wide freedom to decide how the work is done.

Answer this when you sit the paper.

1. Athe list of duties written into the contract of each employee.
2. Bthe number of workers one supervisor is able to control.
3. Cthe order in which suppliers are paid at the end of a month.
4. Dthe line of authority along which instructions pass downwards.

1. Aa separate manager for each individual worker.
2. Ba tall structure with many levels of management.
3. Ca workforce made up entirely of part time staff.
4. Da flat structure with few levels of management.

1. AA job description written for a newly created post
2. BA stock take carried out at the end of the year
3. CA bar chart drawn from the collected figures
4. DA cash budget prepared for the coming quarter

1. Amember states hand the collection of income tax to the bloc.
2. Bmember states share one government that runs their economies.
3. Cfirms are shielded from competition by firms in member states.
4. Dfirms gain a larger market because members cut tariffs on trade.

1. Athe quantity demanded falls.
2. Bthe quantity demanded rises.
3. Cthe quantity supplied falls.
4. Dthe quantity supplied stays the same.

1. Ahold the whole of their output back from the market.
2. Boffer a larger quantity of the good for sale.
3. Coffer a smaller quantity of the good for sale.
4. Dsell the same quantity at a lower cost per unit.

1. Ais made up of buyers in many countries, while a global market is national.
2. Bserves manufacturers alone, while a global market serves households.
3. Ctrades in cash alone, while a global market trades entirely on credit.
4. Dis limited to buyers in one area, while a global market spans countries.

1. Aa local market.
2. Ba niche market.
3. Ca regional market.
4. Da virtual market.

1. ARail transport
2. BRoad transport
3. CAir transport
4. DPipeline transport

1. Adraw and test product designs on a computer before production.
2. Bkeep a record of the wages paid to each member of the staff.
3. Ctrack the movement of delivery vehicles between its branches.
4. Dcollect payments from customers over a mobile money platform.

1. Aprinting invoices and posting them to customers by mail.
2. Brecording every purchase in a handwritten day book.
3. Cvisiting each customer to collect cash at the month end.
4. Dissuing invoices and receiving payments electronically.

1. Ameet customer orders without delay when demand rises.
2. Breduce the amount of storage space the enterprise needs.
3. Cavoid the cost of insuring the goods held in its warehouse.
4. Dincrease the amount of working capital tied up in the business.

1. Afrees the cash that would otherwise sit in its bank account.
2. Blowers the cost of insuring and securing its storage space.
3. Cshortens the time raw materials spend in the production process.
4. Dearns a quantity discount and is protected against price rises.

1. Agoods may deteriorate or go out of fashion before being sold.
2. Bproduction has to stop whenever a delivery is delayed.
3. Cthe enterprise loses the discounts offered on bulk orders.
4. Dcustomers have to wait longer for the goods they order.

Answer this when you sit the paper.