Business Enterprise Skills Paper 2 November 2019

1. Atwo or more partners share the profits and the losses equally.
2. Bshares are transferred privately and members have limited liability.
3. Cshares are traded freely on the stock exchange by any investor.
4. Dthe owner trades alone and carries unlimited liability for the debts.

1. Aholds the largest share of sales in the market it competes in.
2. Bwas the first enterprise ever to be registered in that market.
3. Ccharges the lowest price of any enterprise in that market.
4. Demploys the largest number of workers in the whole country.

1. Aauditing the accounts of a commercial bank at the year end.
2. Bcarrying out banking transactions through an electronic channel.
3. Cissuing the bank notes and the coins used in a country's economy.
4. Dlending money to a business enterprise against fixed security.

1. Athe output obtained from each unit of input used in production.
2. Bthe total quantity of goods a business produces in a period.
3. Cthe profit an enterprise earns after all expenses are deducted.
4. Dthe number of workers an enterprise employs at a given date.

1. Athe owners avoid having to keep records of the firm's dealings.
2. Bthe owners' liability is limited to the amount paid for the shares.
3. Cthe enterprise is relieved of the duty to pay tax on trading profits.
4. Dthe enterprise may trade without registering with the registrar.

1. Ahigh productivity, as staff work harder to earn recognition.
2. Bhigh customer satisfaction, as the staff serve buyers carefully.
3. Chigh labour turnover, as staff leave to join competing firms.
4. Dlow labour turnover, as staff stay on to seek advancement.

1. Aincrease the number of supervisors checking on the work being done.
2. Blengthen the working day so that the same output is achieved.
3. Creview its pay and introduce recognition and promotion prospects.
4. Drecruit replacements each time an experienced employee resigns.

1. Alaissez faire.
2. Bpaternalistic.
3. Cautocratic.
4. Ddemocratic.

1. Atype of customer, since each group buys for different reasons.
2. Bcolour of packaging, since each group prefers a different look.
3. Ctime of purchase, since each group buys in a different season.
4. Dsize of handset, since each group carries a different device.

1. ARevenue earned from the sale of goods during the period
2. BThe bank overdraft owed by the enterprise at the year end
3. CThe premises owned by the enterprise on the reporting date
4. DThe capital contributed by the owner when trading began

1. Aprotects the enterprise from competitors entering into its market.
2. Bopens new services to sell but demands heavy capital spending.
3. Clowers the amount of capital the enterprise needs to invest.
4. Dremoves the need for the enterprise to train its employees.

1. AThe distance from the business to its nearest supplier
2. BThe number of directors appointed to the board of it
3. CThe capital employed in the business at a given date
4. DThe number of years the business has been trading for

1. Aemployees are counted differently in each month of the year.
2. Ba capital intensive firm employs few people but is very large.
3. Ca labour intensive firm employs few people but is very large.
4. Dthe number of employees is impossible for a firm to establish.

1. Ashows the number of people the business employs each year.
2. Bshows the value of what the business actually sells in a year.
3. Cshows the value of the assets the business owns at a date.
4. Dshows the profit that is left after every cost has been deducted.

1. Acompares a firm's profit with the profit of its own owners.
2. Bcompares a firm's assets with the assets of its own bankers.
3. Ccompares a firm's wages with the wages paid by government.
4. Dcompares a firm's sales with the sales of the whole market.

1. Athe value of the funds invested in the assets of the business.
2. Bthe value of the goods the business has sold in the last year.
3. Cthe value of the wages the business pays out every month.
4. Dthe value of the taxes the business remits to the authority.

Answer this when you sit the paper.

1. Ait researches the market before it decides what it will sell.
2. Bit trains the employees it has recruited to serve customers.
3. Cit runs short of working capital before customers begin paying.
4. Dit prepares a cash budget covering each month of its first year.

1. Athe enterprise is charged a higher rate of tax on trading profits.
2. Bcustomers are obliged to buy from a competing enterprise.
3. Cdecisions are taken without the information needed to judge them.
4. Dthe enterprise is prevented by law from borrowing any money.

1. Aits owner decides to withdraw more profit than was budgeted.
2. Bits supervisor fails to check the quality of the work done.
3. Cits accountant records the month's sales in the wrong ledger.
4. Da recession reduces the spending power of its own customers.

1. Amoney is owed by customers while the firm's own bills fall due.
2. Bthe firm is unable to sell any of the goods that it has purchased.
3. Cthe firm is charged a higher price by each of its suppliers.
4. Dthe firm is prevented from advertising to any new customers.

1. Aits sales fall as buyers move to firms offering what they want.
2. Bits costs of production rise faster than the rate of inflation.
3. Cits workers demand a larger share of the profits being earned.
4. Dits bankers are obliged to withdraw the overdraft facility.

Answer this when you sit the paper.

1. Aconvert its cash balance into non-current assets at once.
2. Border raw materials in the largest quantity the store holds.
3. Ccollect debts promptly and keep stock at a workable level.
4. Dgrant every customer a longer period in which to pay up.

1. Anegotiates longer credit terms for each one of its own customers.
2. Bbuys a new delivery vehicle out of the balance at the bank.
3. Cincreases the drawings the owner takes out every month.
4. Dnegotiates longer credit terms with each of its own suppliers.

1. Amay be unable to pay wages and suppliers when they fall due.
2. Bmay be unable to store all of the goods that it has purchased.
3. Cmay be charged a higher rate of tax on the profits it earns.
4. Dmay be required to publish its accounts for the public to read.

1. Afunds are lost altogether once they have been placed in stock.
2. Bthe enterprise becomes unable to settle its debts as they fall due.
3. Cthe enterprise has to reduce the prices it charges its buyers.
4. Dfunds sit idle in stock and debtors instead of earning a return.

1. Abuy a full season's stock at once to obtain a bulk discount.
2. Bkeep a large reserve of every item in case of a late delivery.
3. Chold the same quantity of stock throughout the whole year.
4. Dreduce stock levels and reorder more frequently in small lots.

Answer this when you sit the paper.

1. Awork best when they are consulted about decisions.
2. Bdislike work and must be closely directed and controlled.
3. Cenjoy their work and will accept responsibility willingly.
4. Dseek out extra duties whenever the chance arises.

1. Arespond only to the threat of losing the job they hold.
2. Bneed each task broken down and checked at every stage.
3. Cfind work natural and will exercise self direction to meet aims.
4. Davoid their work whenever supervision is relaxed for a moment or two.

1. Aremoves the need for an enterprise to keep any staff at all.
2. Bguarantees the enterprise a larger profit in every trading year.
3. Cprevents any competing enterprise from reaching its customers.
4. Dspeeds up communication but requires investment and training.

1. Acustomers can pay without carrying cash to the shop counter.
2. Bthe retailer avoids having to record the sale in its books.
3. Cthe retailer is exempt from the tax charged on its daily takings.
4. Dcustomers are obliged to buy more than they had intended.

1. Aa power or network failure can halt trading altogether.
2. Brecords become harder to search than paper ones were.
3. Ccustomers can no longer be reached beyond the local town.
4. Dthe enterprise is prevented from advertising its products.

Answer this when you sit the paper.

1. Aescapes competition from producers based in those countries.
2. Bsaves the cost of transporting its goods across the border.
3. Cearns foreign currency and is less exposed to one economy.
4. Davoids meeting any product standards set by other countries.

1. Aremoves the need for the enterprise to research any of those markets.
2. Bguarantees that sales will rise in each of the coming years.
3. Callows the enterprise to charge the same price everywhere.
4. Dspreads risk, so a fall in one market does not end the business.

1. AA report published by a competitor at its financial year end
2. BA questionnaire completed by the enterprise's own customers
3. CA statistical bulletin published by the government agency
4. DAn article printed in a trade journal for that industry

1. Awas collected for the exact question the enterprise is asking.
2. Bcannot be obtained by any competitor in the same industry.
3. Cputs the enterprise in direct contact with its own customers.
4. Dis cheaper and available at once because it already exists.

1. Athe results are available before the questions have been set.
2. Bthe sample chosen may not represent the whole target market.
3. Cthe enterprise is unable to ask the questions it wishes to ask.
4. Dthe answers received are always identical to published data.

Answer this when you sit the paper.

1. Acollect the debts owed by customers who bought on credit.
2. Brecruit and train the staff who are employed in the sales division.
3. Chold goods safely until they are needed for sale or production.
4. Ddecide the price at which the finished goods will be sold.

1. Asell the whole harvest on the day that it is gathered in.
2. Bavoid the cost of insuring the crop against fire and theft.
3. Craise the quantity of the crop that each hectare produces.
4. Dstore the harvest and release it for sale through the year.

1. AThe number of directors serving on the enterprise's board
2. BThe colour scheme printed on the enterprise's stationery
3. CThe month in which the enterprise was first registered
4. DThe nature of the goods and how quickly they must arrive

1. Aroad haulage to the port and then sea transport onwards.
2. Bair freight for the whole of the journey to save on time.
3. Croad haulage for the whole of the journey to the buyer.
4. Dpipeline transport, which is cheapest over long distances.

1. Aof low value and are wanted in very large quantities.
2. Bvaluable or perishable and are needed very quickly.
3. Cheavy and bulky and are wanted at the lowest cost.
4. Dliquid and are moved continuously between two points.

Answer this when you sit the paper.