Business Enterprise Skills Paper 1 November 2019

1. AA supplier delivering raw materials each week
2. BThe local authority collecting rates on the premises
3. CAn employee working in the packing department
4. DA bank that has lent the enterprise working capital

1. Acreates employment and widens the tax base of the country.
2. Bguides the Reserve Bank in setting the national interest rate.
3. Cremoves the need for the country to import any manufactured goods.
4. Dsets the wage rates that every employer in the country must pay.

1. Athe owner may sell shares in the business to the general public.
2. Bthe business continues in law after the owner has died.
3. Cthe business must publish audited accounts every year.
4. Dthe owner takes the decisions and keeps all of the profit.

1. Ait may be formed and registered by one member acting alone.
2. Bits shares are transferred privately and not offered to the public.
3. Cits shares are freely traded on the Zimbabwe Stock Exchange.
4. Dits members carry unlimited liability for all of the company's debts.

1. Aexists in law as a person distinct from its shareholders.
2. Bis exempt from being sued in the courts of the country.
3. Cis owned by a single shareholder who signs all of its contracts.
4. Dpays no tax because its members are taxed on dividends.

1. Acapping the loss at the amount put into the company's shares.
2. Bguaranteeing a dividend on the shares in every trading year.
3. Cletting the shareholder recover a share of the company's debts.
4. Dshielding the company itself from the claims of its creditors.

1. AThe number of years it has traded
2. BThe distance between its branches
3. CThe age of the owner of the business
4. DThe number of people it employs

Answer this when you sit the paper.

1. Areplace the need to keep accounting records once trading starts.
2. Bset the prices that competing enterprises will be able to charge.
3. Ctest whether the idea will pay before capital is committed.
4. Dmeet the condition that every trader must file one with ZIMRA.

1. Amake the enterprise exempt from the taxes charged on its profits.
2. Bremove the effect of competition from other firms in the market.
3. Csettle the wages that each of the employees in the enterprise is paid.
4. Dgive staff a shared target and a standard to measure results against.

1. Aprovide the greater part of the country's foreign currency reserves.
2. Btake over the collection of value added tax from ZIMRA.
3. Cabsorb labour and supply goods to communities the large firms miss.
4. Dcarry out the monetary policy decided by the Reserve Bank.

1. Atrains its existing staff to raise their output.
2. Bjoins with another firm through a merger or a takeover.
3. Copens an additional branch of its own in a neighbouring town.
4. Dreinvests its retained profit in a new machine.

1. Abackward vertical integration.
2. Bforward vertical integration.
3. Chorizontal integration.
4. Dconglomerate integration.

1. Athe enterprise no longer has to advertise its products.
2. Bcommunication between departments becomes far simpler.
3. Ceach worker performs every single task in the production process.
4. Dfixed costs are spread over more units, so unit cost falls.

1. AA long term loan taken from a commercial bank
2. BInventory held for resale to customers
3. CDelivery vehicles used by the sales team
4. DThe factory building owned by the enterprise

1. AThe rent paid monthly for the bakery premises
2. BThe salary paid to the bakery's accountant
3. CThe insurance premium on the bakery ovens
4. DThe flour used in baking each batch of bread

1. Astays the same for each unit however much is produced.
2. Brises in direct proportion to the number of units made.
3. Cis paid once when the enterprise is first registered.
4. Dstays the same in total whatever the level of output.

1. Atotal variable cost is exactly equal to total fixed cost for the period.
2. Btotal revenue is equal to total cost, so no profit or loss is made.
3. Ctotal revenue is equal to total fixed cost for the period.
4. Dtotal revenue is at its highest and total cost at its lowest.

Answer this when you sit the paper.

1. ARoasting, grinding and packaging them as peanut butter
2. BStoring them in the same sacks until the market price rises
3. CCarrying them to the market in a hired truck
4. DCounting them into lots before they are weighed

1. Aproduction stops whenever a supplier delivers materials late.
2. Bcash is tied up in goods that earn nothing until they are sold.
3. Ccustomers must wait far longer before their orders can be filled.
4. Dthe enterprise loses the discounts given on large orders.

1. Aremoves the need to advertise the product to new customers.
2. Bbuilds repeat custom and cuts the cost of returns and rework.
3. Callows the enterprise to stop checking its output altogether.
4. Dlowers the wages that have to be paid to skilled workers.

1. Araising the selling price that is charged for its finished goods.
2. Bregistering a trade mark for the brand name it uses.
3. Cleasing equipment from a finance house over a fixed period.
4. Demploying extra workers on short term casual contracts.

Answer this when you sit the paper.

1. Ais cheaper and faster because the data already exists.
2. Bis collected for the exact purpose the enterprise has in mind.
3. Cis unavailable to any competitor in the same industry.
4. Dgives the enterprise direct contact with its own customers.

1. AA taste test run by the enterprise on a new product
2. BPublished statistics from the national statistics agency
3. CA questionnaire the enterprise gives to its own shoppers
4. DAn interview held with a customer at the shop counter

1. Aprotects the goods and carries the brand and product information.
2. Blowers the price the retailer is able to charge for the goods.
3. Craises the quantity of the product that is contained in each unit sold.
4. Dreplaces the need to distribute the product through retailers.

1. Aproduce equal numbers of every size the survey covered.
2. Bstop making the sizes at each end of the range altogether.
3. Craise the price of size 6 above the prices of all the other sizes.
4. Dproduce more pairs in size 6 than in the sizes on either side.

1. Aa habit of changing the objectives of the team each week.
2. Bthe ability to communicate clearly and to listen to the team.
3. Ca readiness to take every decision without informing anyone.
4. Da preference for keeping the enterprise's plans from the staff.

1. AA shortage of managers with the technical skill the firm needs
2. BA change in the fashion tastes of the enterprise's customers
3. CA new statute setting out minimum health and safety standards
4. DA high rate of inflation that raises the cost of raw materials

Answer this when you sit the paper.

1. Araises output and lowers absenteeism and labour turnover.
2. Bmakes supervision and quality checking unnecessary.
3. Callows the enterprise to pay lower wages than its rivals.
4. Dremoves the enterprise's obligation to train new recruits.

1. Aesteem needs.
2. Bself actualisation needs.
3. Cphysiological needs.
4. Dsafety needs.

1. Arequiring all profits to be reinvested inside the country.
2. Bshortening the period for which a licence stays valid.
3. Coffering tax holidays and a stable investment policy.
4. Draising the duty charged on the equipment they import.

1. Areduce the amount of capital the investor has to register.
2. Bshorten the time taken to register a company in the country.
3. Clower the cost of operating and make output more dependable.
4. Draise the price the investor can charge in the local market.

1. Aan increase in the number of customers near the present site.
2. Ba decision by the enterprise to widen its product range.
3. Ca rise in rent and rates at the enterprise's present site.
4. Da fall in the price the enterprise pays for its raw materials.

1. Atraining local workers in the skills the firm requires.
2. Bimposing quotas and higher tariffs on the goods it imports.
3. Cgranting it a tax holiday on the profits that it earns locally.
4. Dproviding serviced land in an export processing zone.

1. Aan export subsidy.
2. Ba price control order.
3. Ca tariff charged on imported goods.
4. Dan indigenisation requirement.