Business Enterprise Skills Paper 1 November 2021

1. Aprovides an income and the freedom to take one's own decisions.
2. Bremoves the risk of losing the money put into the venture.
3. Cguarantees a salary at the end of every trading month.
4. Dtransfers the venture's debts to the government of the day instead.

1. Arecord the value of the machinery shown in its accounts.
2. Bidentify what it does well and where it needs to improve.
3. Ccalculate the amount of tax due on its trading profit.
4. Ddecide the wages that its competitors ought to be paying.

1. AAn improvement in the road serving the enterprise's site
2. BA fall in the interest rate charged on the enterprise's loan
3. CA shortage of foreign currency for importing raw materials
4. DA rise in the number of orders received from customers

1. Athe enterprise may sell the equipment whenever it chooses to.
2. Bthe initial cash outlay is much smaller and payments are spread.
3. Cthe equipment becomes the property of the enterprise at once.
4. Dthe enterprise avoids paying anything at all for the use of the asset.

1. Apays interest on the purchase for the whole life of the asset.
2. Bhas to return the equipment to the supplier at the end of a fixed term.
3. Cowns the asset outright but ties up cash it could have traded with.
4. Dkeeps its cash free while another party carries the ownership.

1. Aspotting the opportunity, organising resources and bearing the risk.
2. Bsupervising the daily work of the shop floor employees alone.
3. Cauditing the accounts of the enterprise at the end of each trading year.
4. Dgranting the licences the enterprise needs in order to trade.

Answer this when you sit the paper.

1. Athe recognition a worker receives for good performance.
2. Bthe responsibility a worker is trusted to carry alone.
3. Cthe sense of achievement in finishing a difficult task.
4. Dthe level of pay and the physical working conditions.

1. Adepends on power and data, which may fail without warning.
2. Breaches distant customers more quickly than a posted letter.
3. Cleaves a written record of what each party has agreed.
4. Dcosts less per message than sending a courier with a note.

1. Athe leader is relieved of responsibility for the outcome.
2. Bjunior staff develop the judgement needed for promotion.
3. Cdecisions are taken quickly and instructions are clear to all.
4. Demployees feel trusted and contribute their own ideas more freely.

1. ABanking the takings collected at the end of each day
2. BSetting the objectives the enterprise intends to achieve
3. CPaying the wages of the enterprise's production workers
4. DDelivering the finished goods to the customer's premises

1. Aa fixed sum paid at the same rate every single month.
2. Ba payment made for each unit an employee produces.
3. Ca share of the ownership of the company itself.
4. Dan extra payment made when a target has been reached.

1. Aa percentage of the value of the sales a worker makes.
2. Ba lump sum paid to a worker on completing long service.
3. Can allowance paid to cover a worker's travel expenses.
4. Da payment made to a worker during a period of illness.

1. Ait is protected from competition by larger established firms.
2. Bit no longer needs to keep records of the sales it makes.
3. Cit can charge a higher price than shops in the same trade.
4. Dit reaches many customers at a very low cost per message.

1. AThe trading section, which arrives at gross profit
2. BThe capital section, which lists the owner's equity
3. CThe assets section, which lists buildings and vehicles
4. DThe liabilities section, which lists amounts owed

1. Aa cash inflow, because money enters the business.
2. Ba cash outflow, because a debt is being settled.
3. Cneither an inflow nor an outflow of cash.
4. Dan inflow only if the debtor pays in foreign currency.

1. Aneither an inflow nor an outflow of cash.
2. Ban outflow only in the year the loan was taken out.
3. Ca cash outflow, because money leaves the business.
4. Da cash inflow, because the debt of the business falls.

1. Ashows a record of profit and a clear plan for future growth.
2. Bkeeps its financial results from anyone outside the company.
3. Cpays out the whole of its profit in the first trading year.
4. Dborrows heavily so that its interest charges keep rising.

1. Asupplies goods to the enterprise and is paid at a later date.
2. Blets the enterprise draw beyond its balance up to a limit.
3. Cadvances a fixed sum repayable over an agreed number of years.
4. Dbuys shares in the enterprise and becomes part owner of it.

1. Aissues additional shares to members of the general public.
2. Breceives goods from a supplier and pays for them later.
3. Csells goods to a customer and is paid immediately in cash.
4. Dborrows from a bank against the security of its buildings.

1. AIssuing the country's bank notes and coins
2. BSetting the national rate of value added tax
3. CAuditing the annual accounts of publicly listed companies
4. DAccepting deposits and lending them out to borrowers

1. Asales revenue less the cost of goods sold.
2. Bcurrent assets less current liabilities.
3. Ctotal assets less total liabilities.
4. Dthe capital the owner originally invested.

1. A$120
2. B$240
3. C$340
4. D$460

1. Athe buildings that a business enterprise has put up on its site.
2. Bthe money the owner has invested in the business.
3. Cthe physical effort supplied by the workers employed.
4. Dthe natural resources used in production, including minerals.

1. Athe natural resources extracted from beneath the ground.
2. Bthe profit that is earned by the owner of the business enterprise.
3. Cthe human effort, both physical and mental, used in production.
4. Dthe machinery installed on the floor of a factory.

1. AThe colour scheme chosen for the company's packaging
2. BThe name under which the company has been registered
3. CThe design of the uniform that is worn by the sales assistants
4. DNearness to raw materials and to the market for the goods

1. Alowers the wages that have to be paid to processing staff.
2. Braises the price customers will pay above the cost of the inputs.
3. Creduces the quantity of raw material that the enterprise must buy.
4. Dremoves the need to advertise the finished product at all.

1. Athe enterprise has to run its own rail siding to use it.
2. Bit cannot carry goods directly to a customer's premises.
3. Cdelivery times are uncertain when traffic or roads are poor.
4. Dgoods must be loaded and unloaded at a port before delivery.

1. AThe number of shareholders the enterprise has registered
2. BThe name of the bank at which the enterprise holds funds
3. CThe nature of the goods and the distance to be covered
4. DThe colour of the enterprise's delivery documentation

1. Awins repeat orders and reduces the cost of returns and rework.
2. Ballows the enterprise to dispense with its inspection altogether.
3. Cremoves the need for the enterprise to train its workforce.
4. Dlowers the price the enterprise has to charge its customers.

1. ARecruitment of workers for the production line
2. BAuditing of the accounts at the end of the trading year
3. CDepreciation of the vehicles owned by the firm
4. DPromotion of the product to the target customers

1. Aprice settles where the quantity demanded equals the quantity supplied.
2. Bprice settles where the quantity demanded is at its very highest.
3. Cprice settles at the point where the quantity supplied is at its highest.
4. Dprice is fixed by producers regardless of what buyers will pay.

1. Apayment is accepted in notes and coins handed over directly.
2. Bbuyers and sellers trade online without meeting in person.
3. Cbuyers inspect the goods physically before agreeing a price.
4. Dtrading takes place at a fixed site on one day each week.

1. Asell the same quantity of shoes in every size it makes.
2. Bdesign a style and a price that suit each group of buyers.
3. Cproduce a single style of shoe that is identical for every buyer.
4. Davoid having to carry out any market research at all.

1. Aavoids the need to meet any product standards at all.
2. Bescapes competition from producers based in other countries.
3. Cremoves the cost of transporting goods over long distances.
4. Dearns foreign currency and spreads sales beyond one economy.

1. Athe chance to spread its fixed costs over a much bigger output.
2. Baccess to raw materials that are unavailable at home.
3. Cexchange rate movements that alter the value of its receipts.
4. Da larger number of potential customers for its products.