Business Enterprise Skills Paper 2 November 2022

1. Astarts a venture, organises its resources and carries its risk.
2. Bis employed to supervise the workers on the production line each day.
3. Clends money to a venture and is paid interest in return.
4. Dinspects a venture on behalf of the government of the day.

1. Astores unprocessed maize in a shed until the market price rises.
2. Bcounts unprocessed maize into lots before it is weighed.
3. Cprocesses maize into packaged mealie meal before selling it.
4. Dcarries a load of unprocessed maize to a distant market.

1. AThe secondary stage, where raw materials are made into finished goods
2. BThe tertiary stage, where services are provided to customers
3. CThe final stage, where the finished goods reach the consumer
4. DThe primary stage, where natural resources are grown or extracted

1. ACapital, which is the equipment used to produce other goods
2. BRevenue, which is the money received from selling the goods
3. CProfit, which is the surplus left after the costs are deducted
4. DTurnover, which is the value of the goods sold in a period

1. Agoods are traded on a website with no physical location.
2. Bgoods are bought and sold within a single area or community.
3. Cgoods are traded between the member states of a trading bloc.
4. Dgoods are sold to buyers on several different continents.

1. Acreates employment and adds to the revenue collected in tax.
2. Bsets the interest rate that is charged by the country's own banks.
3. Cfixes the exchange rate at which the currency is traded.
4. Ddecides the level of the minimum wage paid by employers.

1. Aa supplier who delivers raw materials to the enterprise.
2. Ba community living around the site that the enterprise occupies now.
3. Cpart of the enterprise itself, such as an owner or an employee.
4. Da bank that has lent the enterprise money to buy equipment.

1. ADepreciation, which means the fall in value of a used asset
2. BLiquidation, which means selling off the assets and closing down
3. CSurvival, which means staying in business through a hard period
4. DInflation, which means a general rise in the level of prices

1. Amarket leadership, since it must outsell every rival at once.
2. Bmaximum growth, since it must open branches in every town.
3. Clarge dividends, since it must reward its owners immediately.
4. Dsurvival, since it must cover its costs before it can expand.

1. Aa pension, which already covered the household's whole needs.
2. Bpromotion, which brought greater responsibility and better pay.
3. Cemployment, which offered secure work with a large company.
4. Dunemployment, which left no other source of household income.

1. Aan economic constraint, since it changes the rate of price inflation.
2. Ban ecological constraint, since it concerns the environment.
3. Ca technological constraint, since it concerns new equipment.
4. Da legal constraint, since the enterprise must comply with the law.

1. Abuy the cheapest raw materials that are available on the market.
2. Bset clear standards and check the work at each stage against them.
3. Cinspect the goods after a customer has already complained about them.
4. Dproduce the largest quantity the equipment is able to turn out.

1. Aaccepting a fixed proportion of defective output each week.
2. Btesting only the consignments sent to the largest customers.
3. Cmaking every employee responsible for quality at every stage.
4. Demploying one inspector to check the goods at the final stage.

1. Atraining reduces the price the enterprise pays for materials.
2. Bworkers who understand the standard make fewer mistakes.
3. Ctrained workers are able to accept lower wages than others.
4. Dtraining removes the enterprise's duty to check any output.

1. Aallows the enterprise to raise its prices without any limit.
2. Bremoves the enterprise's need to train any of its production workers.
3. Cprevents any rival enterprise from selling a similar product.
4. Dshows customers that an independent body has tested the product.

1. Athe cost of returns, repairs and complaints is much lower.
2. Bthe cost of the raw materials it purchases is much lower.
3. Cthe wages it must pay its skilled employees are much lower.
4. Dthe tax it must pay on its trading profits is much lower.

Answer this when you sit the paper.

1. AA rise in inflation that raises the cost of its raw materials
2. BA decision by the owner to withdraw more profit each month
3. CA failure by a supervisor to check the work of the shift
4. DAn error made by the bookkeeper in recording the month's sales figures

1. Acannot employ any workers to operate its own machinery.
2. Bcannot obtain a licence to trade in its own home market.
3. Ccannot buy the imported raw materials that production needs.
4. Dcannot record the sales it makes to its own local customers.

1. Athe enterprise is required to publish its accounts each year.
2. Bthe enterprise is barred from selling in any foreign market.
3. Cthe enterprise must employ more workers than it needs to.
4. Dborrowing becomes dearer, so expansion plans are postponed.

1. Aremoves the competition the enterprise faces in its market.
2. Badds to costs, since equipment and training must be upgraded.
3. Cadds to sales, since customers must buy more of the same product.
4. Dremoves the enterprise's duty to insure its own employees.

1. Araising its prices so that its goods appear more valuable.
2. Breducing the range of goods it offers to its own customers.
3. Cimproving quality and service so buyers prefer its own goods.
4. Dwaiting for the government to ban the goods that are being imported.

Answer this when you sit the paper.

1. Athe closure of the factory that employed the whole family.
2. Ba wage too low to meet the cost of the household's needs.
3. Can unmet need in the market that no existing firm is serving.
4. Dthe loss of a job when an employer retrenches part of its workforce.

1. Aprevent other people from entering into the same line of business later.
2. Bgive owners the skills to run a venture that would otherwise fail.
3. Cguarantee that every venture attending will make a profit.
4. Dremove the need for a venture to keep any financial records.

1. Aexcuses the venture from paying tax on the profit it earns.
2. Blets an owner acquire equipment before the venture earns enough.
3. Cremoves the risk that the venture will fail during its first trading year.
4. Dobliges customers to buy from the newly established venture.

1. Athe owner is assured of a fixed salary at each month end.
2. Bthe owner is protected from losing the money that was invested in it.
3. Cthe owner is relieved of the need to work any long hours.
4. Dthe owner takes the decisions instead of following instructions.

1. Alets a small trader escape the tax due on trading profits.
2. Blets a small trader set the prices charged by competitors.
3. Clets a small trader receive payments without a bank account.
4. Dlets a small trader avoid recording the sales that are made.

Answer this when you sit the paper.

1. Aestablishes what customers want before resources are committed.
2. Bguarantees that every product launched will sell profitably.
3. Cremoves the need for the enterprise to advertise any of its products.
4. Dsettles the wages the enterprise pays its production workers.

1. Ashows what customers are willing to pay and what rivals charge.
2. Bshows the wages the enterprise must pay to its own workers.
3. Cshows the amount of tax the enterprise owes on its profits.
4. Dshows the value of the assets the enterprise owns at a given date.

1. Aprevents competitors from launching a product of their own.
2. Bremoves the cost of producing the very first batch of the product.
3. Ctests the idea on real customers before full production begins.
4. Dobliges retailers to stock the product once it has been made.

1. Aidentifies the employees who have served the enterprise the longest.
2. Bidentifies groups of customers whose needs differ from each other.
3. Cidentifies the suppliers offering the cheapest raw materials.
4. Didentifies the machines that produce the largest daily output.

1. Ait removes the enterprise's ability to change its own product.
2. Bit costs money and time that a small firm may not be able to spare.
3. Cit can be carried out by an incorporated enterprise and by nobody else.
4. Dit must be published in full for the general public to inspect.

Answer this when you sit the paper.

1. Amore posts open, so there are better prospects of promotion.
2. Bwages fall, since the enterprise employs more people than before.
3. Cjob security ends, since a larger firm needs fewer employees.
4. Dtraining stops, since a larger firm hires only skilled workers.

1. Aprofits may rise, and control over every decision is unchanged.
2. Bprofits must fall, since a larger firm carries much higher costs overall.
3. Cprofits must fall, since a larger firm cannot borrow any money.
4. Dprofits may rise, but control has to be shared with other people.

1. Atheir salaries are fixed by the workers who report to them.
2. Bresponsibilities widen, so more delegation and planning is needed.
3. Cresponsibilities narrow, so no planning of any kind is needed at all.
4. Dtheir posts are removed, since a larger firm needs no managers.

1. Athe enterprise loses the discounts earned on bulk purchases.
2. Bthe enterprise is no longer able to employ any new workers.
3. Cthe enterprise must sell its assets to pay for the expansion.
4. Dcommunication becomes harder as more layers are added.

1. Athey are obliged to leave the board of directors at once.
2. Bthey must repay the new investors within a single year.
3. Ctheir share of the profits and of the votes is reduced.
4. Dtheir liability for the company's debts becomes unlimited.

Answer this when you sit the paper.

1. Amessages can no longer be stored for reference at a later date.
2. Bmessages must be delivered in person by a member of staff.
3. Cmessages reach fewer people than a printed circular would.
4. Dmessages reach distant branches in seconds instead of days.

1. Aprinting, postage and travel are largely avoided.
2. Bthe enterprise no longer employs any office staff.
3. Cthe enterprise pays nothing at all for data or airtime.
4. Dcustomers are charged a fee for reading each message.

1. Aconfidential information may be intercepted or stolen.
2. Bwritten records of the messages cannot be kept at all.
3. Cmessages take longer to reach the intended recipient.
4. Donly one person can be sent a message at any one time.

1. Ait can charge a higher price than any shop in the same trade.
2. Bit answers enquiries quickly at very little cost per message.
3. Cit is protected from competition by larger established firms.
4. Dit is excused from keeping records of the orders received.

1. Aallows staff in different branches to meet without travelling.
2. Bprevents managers from issuing any instructions to their own staff.
3. Crequires every message to be approved by a senior manager.
4. Dobliges the enterprise to hold every meeting face to face.

Answer this when you sit the paper.