Business Enterprise Skills Paper 2 November 2018

1. Aa document that records the amounts owed by a firm's customers.
2. Ba licence issued by a local authority allowing a firm to trade.
3. Ca person appointed by the shareholders to audit a company's accounts.
4. Dan organisation that combines resources to produce goods or services.

1. Aits sales expressed as a proportion of total sales in the market.
2. Bthe proportion of its shares that are held by its own directors.
3. Cthe share of its profit that is distributed to its shareholders.
4. Dthe proportion of its total output that is sold to overseas customers.

1. AA retailer who buys the toys and resells them to parents
2. BA supplier who delivers plastic granules to the factory
3. CA local council that collects rates on the factory site
4. DA director who holds a seat on the company's own board

1. AThe number of employees and the capital employed
2. BThe number of employees and the rate of interest paid
3. CThe capital employed and the age of the two directors
4. DThe market share held and the number of years traded

1. Aoccupation, since the toy must suit the parent's line of work.
2. Breligion, since the toy must suit the beliefs of the household.
3. Cnationality, since the toy must suit the country of the buyer.
4. Dage, since the toy must suit the stage the child has reached.

1. AThe cost of transport to the market the goods are sold in
2. BThe number of directors the enterprise has appointed
3. CThe colour of the packaging the enterprise has chosen
4. DThe name under which the enterprise has been registered locally

1. AThe cost of the finance and the length of time it is needed for
2. BThe number of branches the lending institution has opened
3. CThe date on which the lending institution was established
4. DThe colour scheme used in the lending institution's own branding

1. AAwarding a cash bonus when the monthly target is exceeded
2. BRaising the basic monthly wage of every member of the team
3. CRecognising the best performer in front of the whole team
4. DPaying a commission on the value of the toys each one sells

1. Akeeps complete control while its own market share stays the same.
2. Bloses its share of the market and its access to distribution.
3. Cbecomes exempt from paying tax on the profits it now earns.
4. Dgains a much larger market share but loses some of its control.

1. Athe two workforces and systems may prove costly to combine.
2. Bthe combined firm loses the buying power each firm had alone.
3. Cthe combined firm can no longer sell in its existing outlets.
4. Dthe smaller firm has to close the branches it already runs.

1. Ainformal, since the enterprise no longer keeps records of its output.
2. Bcapital intensive, since machinery does more of the work than labour.
3. Clabour intensive, since workers do more of the work than machinery.
4. Dseasonal, since output is concentrated into a few months each year.

1. Athe enterprise needs a much smaller amount of capital than before.
2. Bthe enterprise is protected from any competitor entering its market.
3. Coutput per worker rises and the quality of the goods is more even.
4. Dthe enterprise avoids having to train any of the staff it employs.

1. Akeeps the retail margin and hears what its customers say directly.
2. Bavoids the cost of transporting the toys to the retail outlet.
3. Cescapes the rent and rates payable on the premises it occupies.
4. Dremoves the need to advertise the toys to any of its own customers.

Answer this when you sit the paper.

1. APhysical strength, so that the owner can load the delivery vehicles alone
2. BPerfect memory, so that the owner never has to keep any records
3. CDecision making, so that choices are taken on the evidence available
4. DManual dexterity, so that the owner can operate every machine

1. Aarranging the layout of the machines on the production floor.
2. Bsettling disputes that arise between two members of the staff.
3. Cplanning and controlling the money coming into and out of the firm.
4. Ddesigning the packaging in which the finished goods will be supplied.

1. Athe enterprise may be formed without registering with anybody.
2. Bthe members share the profits without any of them being taxed.
3. Cthe members' liability is limited to what they paid for their shares.
4. Dthe enterprise is relieved of the duty to pay tax on its trading profits.

1. Athe enterprise is barred from borrowing from a commercial bank.
2. Bformation and reporting requirements add cost and paperwork.
3. Cthe members become liable for the whole of the company's debts.
4. Dthe enterprise comes to an end whenever a member leaves it.

1. Ais required to publish its audited accounts once every year.
2. Bis owned by shareholders who elect a board of directors.
3. Ccontinues in law even after one of its owners has died.
4. Dhas no legal identity separate from the partners who own it.

Answer this when you sit the paper.

1. Acollect the value added tax that is due from households in a country.
2. Bcreate employment for people the large firms are unable to absorb.
3. Ccarry out the monetary policy decided on by the central bank.
4. Dhold the greater part of the country's foreign currency reserves.

1. Asupplying components and services the larger firms buy in.
2. Bsetting the prices at which the larger firms sell their goods.
3. Cauditing the annual accounts that the larger firms publish.
4. Dgranting the operating licences the larger firms have to hold.

1. Aremoves the country's need to import any goods whatsoever.
2. Blowers the amount of tax collected by the revenue authority.
3. Cadds value locally and earns more than the raw crop would.
4. Dreduces the number of workers needed in the whole country.

1. Aan absence of competition from any other firm in the same market.
2. Ban obligation to publish audited accounts every trading year.
3. Ca legal requirement to employ at least one hundred workers.
4. Dlimited access to credit, since few of them can offer security.

1. Areserving a share of public tenders for smaller suppliers.
2. Braising the duty charged on the equipment they import.
3. Crequiring each of them to appoint a board of directors.
4. Dincreasing the rate of tax charged on their trading profits.

Answer this when you sit the paper.

1. Abuy the premises, equipment and first stock it needs to trade.
2. Bdistribute a dividend to the owners before any sales are made.
3. Csettle the tax that will fall due on next year's trading profit.
4. Drepay the loans that its competitors have taken from the bank.

1. Areceives payment from every customer on the day the sale is made.
2. Bbuys all of its raw materials on interest free credit from suppliers.
3. Cpays for stock and wages before its customers settle their accounts.
4. Dexpects its customers to pay in cash before any goods are supplied.

1. Aguarantees that the enterprise will earn a profit in the coming year.
2. Bsets a plan in money terms against which actual results are compared.
3. Crecords the transactions that have already been entered in the ledger.
4. Dreplaces the need for the enterprise to prepare any final accounts.

1. Alists the non-current assets the enterprise owns at a date.
2. Brecords the wages paid to each employee during a month.
3. Cshows in advance the months in which cash will run short.
4. Dshows the profit the enterprise has earned during the year.

1. Aa budget cannot be prepared unless the firm is incorporated.
2. Ba budget must be published for the general public to inspect.
3. Ca budget removes the need to keep any accounting records.
4. Da budget rests on forecasts that may turn out to be wrong.

Answer this when you sit the paper.

1. Areduces the wages the enterprise has to pay its junior employees.
2. Bensures instructions are understood so that work is done correctly.
3. Cremoves the need for the enterprise to supervise any of its employees.
4. Dguarantees that every decision the management takes is correct.

1. Athe enterprise spends less on materials than it had budgeted.
2. Borders are misunderstood and work has to be done a second time.
3. Cemployees become more committed to the objectives being set.
4. Dcustomers receive their deliveries earlier than they had expected.

1. Aleaves the team free to decide how the work will be carried out.
2. Basks the team to vote before any decision at all can be taken.
3. Ctakes decisions alone and issues them to the team as instructions.
4. Dconsults the team and takes the decision together with its members.

1. Aconsults the team before deciding and explains the decision taken.
2. Bgives orders that the team is expected to follow without question.
3. Cleaves the team entirely alone to set its own aims and methods.
4. Dpasses every decision upwards to the board for it to settle.

1. Aa remark made to one supervisor to pass round the others.
2. Ba written circular sent to each of the supervisors concerned.
3. Ca word passed on to whichever supervisor happens to call in first.
4. Da notice pinned to the board in the head office canteen.

Answer this when you sit the paper.

1. Aprevents any competing firm from entering the same market.
2. Blets customers identify the product and return to it by name.
3. Clowers the cost of the raw materials used in making the product.
4. Dremoves the need to advertise the product to any new customers.

1. Aescape the tax charged on the profits it earns from those goods.
2. Bcharge a higher price than an unbranded product of the same kind.
3. Cavoid meeting the quality standards that other producers must meet.
4. Dsell its output without arranging any distribution of the goods.

1. Aless of the enterprise's cash is tied up in the goods awaiting sale.
2. Bthe cost of storing and insuring the goods is very much lower.
3. Cgoods are far less likely to deteriorate before they are sold.
4. Dcustomer orders can be met at once even when demand rises sharply.

1. Acustomers have to wait longer before their orders can be filled.
2. Bproduction stops each time a supplier delivers materials late.
3. Cthe enterprise forfeits the discounts offered on bulk purchases.
4. Dcash is tied up in goods that earn nothing until they are sold.

1. Athe same quantity of stock throughout the whole trading year.
2. Bsmall quantities of stock replenished by frequent deliveries.
3. Clarge quantities of stock ordered once at the start of a season.
4. Dno stock at all, waiting until an order has actually been placed.

Answer this when you sit the paper.