Business Enterprise Skills Paper 2 November 2023

1. Athe owner is required to appoint a board of directors to run the business for them.
2. Bthe owner has unlimited liability, so personal assets can be seized for its debts.
3. Cthe owner must share the profits equally with the other owners of the business.
4. Dthe business is required to publish its accounts for the general public to read.

1. A6 667 units
2. B10 000 units
3. C20 000 units
4. D60 000 units

1. A$10 000
2. B$20 000
3. C$30 000
4. D$40 000

Answer this when you sit the paper.

1. AThe salary of the accountant employed at the factory
2. BThe sugar that is used in making each batch of sweets
3. CThe annual insurance premium on the factory building
4. DThe monthly rent that is paid for the factory premises

1. Afaults are corrected by a single inspector at the end of the production line.
2. Bquality is checked only on the samples sent to the very largest customers.
3. Cevery employee is responsible for quality at every stage of production.
4. Dthe enterprise accepts a fixed proportion of defective output each week.

1. Ageographic segmentation.
2. Bpsychographic segmentation.
3. Cbehavioural segmentation.
4. Ddemographic segmentation.

1. AEconomies of scale gained from producing at a higher level of output
2. BExchange rate movements that reduce the value of the amounts received
3. CThe opportunity to earn foreign currency for the home country's economy
4. DAccess to a much larger customer base than the home market offers

1. Athe partnership is able to sell shares to investors on the stock exchange.
2. Beach of them keeps the whole of the profit that their own business earns.
3. Cthe combined resources allow them to compete on a much larger scale.
4. Dtheir liability for the debts of the business becomes limited by law.

1. Alowers the rate of interest that the banks charge on their business loans.
2. Breduces the amount of tax an enterprise pays on the profit it earns.
3. Craises the wages that an enterprise is able to pay to its workers.
4. Dmakes new products possible or lets existing ones be made more cheaply.

1. Alets a design be tested and altered on screen before any material is used.
2. Bsets the selling price that will be charged for the finished product.
3. Cdelivers each finished product directly to the enterprise's own customers.
4. Drecruits and trains the designers that the enterprise needs to employ.

1. Athe enterprise can no longer store its old designs for reuse at a later date.
2. Bdesigns take longer to alter than they did when they were drawn on paper.
3. Cthe software and the training of the designers are expensive to provide.
4. Dmaterial waste rises because designs are not tested before production starts.

1. AA loan advanced at a rate below the one charged by commercial banks
2. BA rebate of the customs duty paid on machinery imported from abroad
3. CTraining and business advisory services provided at no cost to the owner
4. DA grant paid towards the cost of buying new equipment for the production line

1. Athe enterprise expands faster than the finance available can support.
2. Bthe enterprise sells its goods at a price above the prices its rivals charge.
3. Cthe enterprise holds a larger balance of cash than it actually needs to hold.
4. Dthe enterprise takes on fewer orders than its production capacity can fill.

1. Acustomers refuse to buy from an enterprise that keeps no written records.
2. Bthe enterprise is charged a higher rate of interest by all of its suppliers.
3. Cthe owner cannot see that costs are rising until it is too late to act.
4. Demployees demand higher wages whenever no proper records are being kept.

Answer this when you sit the paper.

1. Apenetration pricing.
2. Bprice skimming.
3. Cpromotional pricing.
4. Dcost-plus pricing.

1. Apromotion is given priority and the other three elements are left unchanged.
2. Bthe price is set as low as the enterprise can possibly afford to set it.
3. Cthey are consistent with one another and with the target market chosen.
4. Dthe enterprise spends exactly the same amount of money on each of them.

1. Asupported by advertising that stresses the quality of the materials used.
2. Bpackaged in a way that reflects the care that was taken in making it.
3. Csold with a guarantee that any repairs will be carried out free of charge.
4. Ddistributed through outlets that customers associate with cheap goods.

1. Apaying out cash for inputs and receiving cash back from customers.
2. Btaking out a long-term loan and repaying the final instalment on it.
3. Cthe start of the financial year and the date on which accounts are signed.
4. Dbuying a non-current asset and selling it at the end of its useful life.

1. APaying suppliers on delivery instead of taking thirty days of credit
2. BCollecting from trade receivables in thirty days instead of sixty days
3. CExtending the credit given to customers from thirty days to ninety days
4. DHolding three months of raw materials in store instead of one month

1. Ainflation raises the value of sales without any rise in real output.
2. Bturnover is not shown anywhere within the published financial statements.
3. Cturnover falls whenever the enterprise takes on more employees than before.
4. Donly companies quoted on a stock exchange are required to record turnover.

Answer this when you sit the paper.

1. AA goods received note
2. BA purchase order
3. CA quotation
4. DA delivery note

1. Aless of the enterprise's cash is tied up in goods that are held in store.
2. Bthe cost of storing, insuring and guarding the goods is avoided entirely.
3. Cthe risk that the goods deteriorate or go out of date is taken away.
4. Dcustomer orders can be met at once, so sales are not lost to a rival.

1. Aproduction has to stop whenever a supplier delivers an order late.
2. Bcash is tied up in goods that may deteriorate, be stolen or go out of date.
3. Cthe enterprise loses the quantity discount that is offered on bulk purchases.
4. Dcustomers have to wait while the goods are ordered from the supplier.

1. Aair transport.
2. Brail transport.
3. Croad transport.
4. Dsea transport.

1. Asmall but urgent consignments of high value going to another continent.
2. Bdeliveries made from a warehouse to shops within the same town.
3. Cperishable goods that must reach the customer within a single day.
4. Dbulky, heavy goods of low value per tonne that are travelling overseas.

1. Athe enterprise reaches customers far beyond its area without opening branches.
2. Bpayment is received in cash at the moment when the customer collects the goods.
3. Ccustomers are able to inspect and handle the goods before they buy them.
4. Dthe enterprise no longer needs to arrange delivery of the goods it sells.

1. Athe enterprise must rent expensive premises in the centre of the town.
2. Borders can be taken only during the enterprise's own normal daily opening hours.
3. Cthe prices displayed cannot be changed once the site has been set up.
4. Dcustomers cannot examine the goods before they commit themselves to buying.