Business Enterprise Skills Paper 2 November 2021

Answer this when you sit the paper.

1. Adecisions can be taken quickly because nobody else has to be consulted.
2. Bthe enterprise continues to trade in its own name after the owner has died.
3. Cthe enterprise can raise capital by offering shares to the general public.
4. Dthe owner's personal property is protected if the enterprise cannot pay.

1. AKeeping the savings accounts of individuals in small rural branches
2. BProviding medium and long-term finance and advice to business enterprises
3. CSupervising the trading of company shares on the national stock exchange floor
4. DIssuing the national currency and setting the country's interest rate

1. AThe owner's choice of colour for the finished dining tables sold
2. BAn unreliable electricity supply that halts the woodworking machinery
3. CA decision by the owner to keep the workshop open on Saturday mornings
4. DA supplier offering a longer period of credit than it did before

1. Arecord every transaction the enterprise has already carried out.
2. Bshow in advance the months in which cash is expected to run short.
3. Cvalue the non-current assets the enterprise owns at the year end.
4. Dcalculate the profit the enterprise has earned during the past year.

1. Abuilds goodwill with the customers and the community the enterprise serves.
2. Bincreases the price that the enterprise can charge for every product it sells.
3. Creduces the amount of tax the enterprise is required to pay each year.
4. Dremoves the enterprise's obligation to comply with employment law.

1. ASelecting the supplier who will deliver the raw materials needed
2. BChoosing the day of the week on which wages will be paid out
3. CIncreasing the enterprise's share of the market that it sells in
4. DDeciding which bank will hold the enterprise's current account

1. Asets the wage rate that each employee in the enterprise will be paid.
2. Bprovides a target against which actual results can later be compared.
3. Crecords the cash that the enterprise actually received during last year.
4. Dremoves the effect that inflation has on the enterprise's own costs.

1. AA questionnaire completed by shoppers outside the enterprise's shop
2. BA focus group discussion held with ten of the regular customers
3. CGovernment statistics on household spending published last year
4. DA test market run in one town before a full national launch

1. Athe information costs the enterprise nothing at all to collect.
2. Bthe information is already available to every one of the competitors in the market.
3. Cthe information can be collected without asking anybody any questions.
4. Dthe information answers the enterprise's own question and is up to date.

1. Afixes the price at which competing enterprises will be allowed to sell.
2. Bprovides the finance that the enterprise needs to launch the product.
3. Cconfirms the exact quantity that will be sold in each month of the coming year.
4. Destablishes whether customers want the product before money is committed.

Answer this when you sit the paper.

1. Areduces the amount of money that is tied up in inventory in the store.
2. Bremoves the cost of transporting goods from the supplier to the factory.
3. Callows the enterprise to buy its raw materials without paying for them.
4. Dmakes the enterprise independent of the reliability of its own suppliers.

1. Atraining the workforce in the safe operation of the production machinery.
2. Bgiving accurate, up to date figures on costs, output and orders received.
3. Cdeciding on the manager's behalf which products the enterprise makes.
4. Dremoving the need for the enterprise to employ a maintenance team.

Answer this when you sit the paper.

1. Athe manager gives up control of the objectives that are to be set.
2. Bthe workforce is left without any instruction on what it should do.
3. Cemployees are not consulted, so motivation and job satisfaction fall.
4. Ddecisions take a long time to reach because everyone must be consulted.

1. Aleaves employees to organise the work in whatever way they choose.
2. Btakes decisions without giving the workforce any instructions at all.
3. Callows the employees to take the final decision by a vote among them.
4. Dexplains the reasons for a decision and considers employee welfare.

1. Athe cost of borrowing from the commercial banks rises sharply.
2. Ba competitor lowers its prices below the enterprise's own unit costs.
3. Cthe government raises the rate of tax charged on business profits.
4. Dan existing supplier withdraws and its customers are left unserved.

1. AEmployee numbers are not recorded anywhere in an enterprise's own accounts.
2. BEnterprises are not permitted to disclose how many workers they employ.
3. CA highly automated enterprise produces a great deal while employing few people.
4. DThe number of employees changes every time the enterprise pays out its wages bill.

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AStaffing
2. BPlanning
3. CControlling
4. DOrganising

1. Aconglomerate diversification.
2. Bbackward vertical integration.
3. Cforward vertical integration.
4. Dhorizontal integration.

1. Abulk buying of grain and shared milling capacity lower the unit cost.
2. Bthe enterprise spreads its risk across a completely different industry.
3. Cthe enterprise takes over the shops through which its meal is sold.
4. Dthe enterprise gains direct ownership of the farms that grow its grain.

1. ABuying a factory building the enterprise expects to use for twenty years
2. BPaying this month's wages while waiting for a customer to settle an invoice
3. CBuying a delivery of raw materials that will be used up within two weeks
4. DMeeting an unexpected electricity bill that falls due at the end of the month

1. Athe instalments vary from month to month and so cannot be budgeted for.
2. Bthe enterprise cannot use the equipment until it has been fully paid for.
3. Cthe total amount paid exceeds the cash price because interest is charged.
4. Dthe enterprise must provide additional security besides the equipment itself.

1. Aonly on the amount actually overdrawn, and only for the days it is used.
2. Bonce a year, on the largest amount that was overdrawn during that whole year.
3. Cat a fixed sum each month regardless of the balance on the account.
4. Don the full amount of the agreed limit for the whole of the year.