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ZIMSEC O Level · 4048/2 · N2024

Business Enterprise Skills Paper 2 November 2024

Questions
38
Total marks
160
Time allowed
135 min
Syllabus code
4048/2

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Questions
38
Pass mark
23
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Answer every question in the printed order, get marked at the end, then see the answers.

The questions

Question 101

[2 marks]private limited companies
A private limited company is best defined as a business
  1. Aowned by the state and run entirely on behalf of the general public.
  2. Bwhose shares are freely bought and sold on a public stock exchange.
  3. Cowned by shareholders with limited liability, whose shares cannot be sold to the general public.
  4. Downed and run by one person alone, who carries unlimited liability for its debts.

Question 102

[2 marks]private limited companies
A feature of a private limited company such as Chapman Pvt Ltd is that
  1. Ait must publish its full accounts for any member of the public to inspect.
  2. Bits shareholders enjoy limited liability, so their personal assets are protected.
  3. Cit is owned by a single person who bears all the business's debts personally.
  4. Dit can sell shares to anyone at all through a public stock exchange.

Question 103

[2 marks]private limited companies
Another feature of a private limited company is that
  1. Aits existence ends automatically the moment any one shareholder dies.
  2. Bit is legally identical to a sole proprietorship in every respect.
  3. Cit has separate legal identity from its owners, so it can own property and sue in its own name.
  4. Dit requires no memorandum or articles of association to be registered.

Question 104

[2 marks]enterprising skills
A skill or attribute needed to run an enterprise like Chapman Pvt Ltd is
  1. Arisk-taking, since starting and growing a business always involves uncertainty.
  2. Ban aversion to any form of change once the business has been set up.
  3. Ca preference for working entirely alone, with no advice from anyone else.
  4. Da fixed refusal to ever alter the original business plan once written.

Question 105

[3 marks]sources of finance
Internal sources of finance are distinguished from external sources in that internal finance
  1. Ais money borrowed from a supplier through trade credit.
  2. Bcomes from within the business itself, such as retained profit.
  3. Calways comes from a bank loan arranged outside the business.
  4. Dis raised only by selling new shares to outside investors.

Question 106

[2 marks]sources of capital
A source of capital available to Chapman Pvt Ltd is
  1. Acapital that requires no repayment or return of any kind.
  2. Ba government grant that never has to be applied for.
  3. Cowner's equity contributed by its shareholders.
  4. Dcash found without any record of where it came from.

Question 107

[3 marks]business plans
A business plan is important to an enterprise such as Chapman Pvt Ltd because it
  1. Aguarantees the business will make a profit in its very first year of trading.
  2. Bsets out the business's objectives and strategy, and helps in raising finance from lenders.
  3. Cremoves the need for the business to ever review its own performance.
  4. Dis a legal document required before any product may ever be sold.

Question 108

[2 marks]demand
Demand, in the sense used when Ishe researches the market for Chapman's blocks, means
  1. Athe total quantity of a good that a business has produced and placed in storage.
  2. Bthe number of competitors selling a similar good in the same market.
  3. Cthe amount of raw material a business orders from its suppliers each month.
  4. Dthe quantity of a good that customers are willing and able to buy at a given price.

Question 109

[2 marks]business resources
A type of resource Chapman Pvt Ltd requires to run its enterprise is
  1. Aa resource that, once used, never needs replacing or maintaining.
  2. Ba resource available only to a business that is already a public company.
  3. Chuman resources, the labour needed to make and sell the blocks.
  4. Da resource that costs the business nothing at all to acquire or use.

Question 110

[3 marks]transport
A factor Chapman Pvt Ltd would consider when choosing transport to move its blocks is
  1. Athe number of years the business has been legally registered.
  2. Bthe cost of transport relative to the value and bulk of the blocks being moved.
  3. Cthe colour scheme used on the company's letterhead.
  4. Dthe day of the week on which the business was originally founded.

Question 111

[3 marks]business relocation
A factor that led to Chapman Pvt Ltd considering relocation, as described in the case, is
  1. Aa shortage of customers willing to buy from the business.
  2. Bhigh transport costs incurred moving materials from town to Sundowner.
  3. Ca legal order requiring the business to close down entirely.
  4. Da fall in demand for the blocks the business produces.

Question 112

[3 marks]business relocation
Relocating closer to its market or its materials would benefit a business like Chapman Pvt Ltd because it would
  1. Aguarantee that demand for the blocks doubles immediately after the move.
  2. Breduce the transport costs of moving materials and finished blocks.
  3. Cautomatically raise the price the business can charge for each block.
  4. Dremove the business's need to research its market at all going forward.

Question 201

[3 marks]drivers towards enterprising
A driver that pushes a person towards starting their own enterprise is
  1. Aa law that forbids anyone from being formally employed by another.
  2. Bthe desire for independence, working for oneself rather than an employer.
  3. Ca guaranteed monthly salary paid regardless of the business's performance.
  4. Da complete absence of any financial risk in starting the business.

Question 202

[3 marks]drivers towards enterprising
The profit motive drives a person towards enterprising because
  1. Aprofit can only ever be earned by a business that is already a public company.
  2. Bevery enterprise is guaranteed a profit from its very first day of trading.
  3. Cthe entrepreneur keeps the surplus earned after costs, unlike a salaried employee.
  4. Dan entrepreneur pays no tax at all on the profit that the business earns.

Question 203

[3 marks]drivers towards enterprising
Unemployment can act as a driver towards enterprising because
  1. Aunemployment always rises whenever the number of new enterprises rises.
  2. Bunemployment guarantees a person access to unlimited start-up capital.
  3. Can unemployed person is legally barred from ever being self-employed.
  4. Da person unable to find formal employment may start a business to earn a living.

Question 204

[3 marks]drivers towards enterprising
Identifying a gap or opportunity in the market drives enterprising because
  1. Aa market that already has no competitors can never be entered by a new business.
  2. Ban opportunity, once identified, requires no further planning or resources to exploit.
  3. Cgaps in a market are illegal for any enterprise to try to fill.
  4. Dan unmet customer need points to a demand a new enterprise could profitably serve.

Question 301

[2 marks]measuring business size
One way of measuring the size of a business is by its
  1. Anumber of employees.
  2. Bdistance from the nearest border post.
  3. Cthe age of its founder at the time it was registered.
  4. Dthe number of languages spoken by its staff.

Question 302

[2 marks]measuring business size
Another way of measuring the size of a business is its
  1. Athe number of different logos it has used since it was founded.
  2. Bthe number of times its premises have been repainted.
  3. Cthe number of holidays its staff are entitled to each year.
  4. Dannual turnover, the value of sales made in a year.

Question 303

[3 marks]measuring business size
A limitation of using number of employees alone to measure business size is that
  1. Aa highly automated business can generate a large turnover with very few employees.
  2. Bemployee numbers are the only measure that regulators are legally allowed to use.
  3. Cevery business, whatever its size, employs exactly the same number of people.
  4. Dthe number of employees a business has can never be counted accurately.

Question 304

[3 marks]SMEs
Small to Medium Enterprises (SMEs) play a role in the economy by
  1. Acontrolling the majority of the country's stock exchange.
  2. Boperating only in the same one industry across every country.
  3. Ccreating employment for a large share of the working population.
  4. Dbeing legally exempt from ever paying any form of tax.

Question 305

[3 marks]SMEs
SMEs also contribute to the economy through
  1. Aeliminating the need for any large enterprise to exist at all.
  2. Bfixing the national exchange rate used in international trade.
  3. Cguaranteeing that poverty is fully eliminated within one year.
  4. Dinnovation and diversifying the range of goods and services available.

Question 401

[3 marks]economic integration
Economic integration between countries refers to
  1. Aa single country dividing itself into smaller, separately governed regions.
  2. Ba business merging with another business operating in the very same town.
  3. Cone country's currency being used exclusively within its own borders forever.
  4. Dcountries removing trade barriers and cooperating to form a larger combined market.

Question 402

[2 marks]economic integration
An example of economic integration a country such as Zimbabwe takes part in is
  1. Amembership of a regional trade bloc such as SADC or COMESA.
  2. Bbanning its own citizens from ever travelling abroad.
  3. Cprinting its own currency for use only inside its own borders.
  4. Dclosing its border completely to trade with every neighbouring country.

Question 403

[3 marks]demand forecasting
Demand forecasting is important to a business enterprise because it helps
  1. Aremove the need for the business to ever hold any stock at all.
  2. Bplan production and stock levels to match expected future sales.
  3. Cguarantee that the business will never run out of any input.
  4. Dfix the final selling price of the product for all time.

Question 404

[3 marks]demand forecasting
Demand forecasting also benefits a business, such as Chapman Pvt Ltd expanding into new markets, because it
  1. Ais required by law before a business can register with the authorities.
  2. Beliminates all risk of a new market failing to accept the product.
  3. Cguides decisions on staffing, capacity and finance needed for expansion.
  4. Dremoves the need for the business to ever review its forecast again.

Question 501

[2 marks]commercial banks
A function of a commercial bank is to
  1. Aaccept deposits from customers and hold their money safely.
  2. Bprint the national currency used across the whole economy.
  3. Cregulate every other bank operating within the country.
  4. Dset the country's official inflation target each year.

Question 502

[2 marks]commercial banks
Another function of a commercial bank is to
  1. Aown and directly manage every business it lends money to.
  2. Bguarantee that every loan it issues will always be repaid in full.
  3. Clend money to businesses and individuals who need credit.
  4. Dsupply electricity to the businesses that hold accounts with it.

Question 503

[2 marks]commercial banks
Commercial banks also function to
  1. Acollect income tax on behalf of the national government.
  2. Bissue passports to citizens travelling outside the country.
  3. Cset the school curriculum taught in the country's schools.
  4. Dprovide foreign currency exchange services to their customers.

Question 504

[3 marks]attracting investors
A way government can attract investors to the economy is by
  1. Aoffering tax incentives such as tax holidays to new investors.
  2. Braising the corporate tax rate charged to every new investor.
  3. Cbanning foreign investors from operating in the country entirely.
  4. Dremoving all legal protection for property that investors own.

Question 505

[3 marks]attracting investors
Government can also attract investors by
  1. Amaintaining political and economic stability that investors can plan around.
  2. Brestricting all imports of machinery and equipment investors would need.
  3. Crefusing to guarantee the safety of any investor's property.
  4. Dchanging investment laws without any notice, at random, every month.

Question 601

[3 marks]e-purchasing
E-purchasing benefits a business enterprise because it
  1. Aremoves the need for the business to ever pay for what it buys.
  2. Bis only available to a business that already trades on a stock exchange.
  3. Clets the business compare suppliers and prices quickly online, saving time and cost.
  4. Dguarantees that every supplier found online is completely reliable.

Question 602

[2 marks]e-purchasing
E-purchasing also helps a business enterprise because it
  1. Awidens access to suppliers beyond the business's own local area.
  2. Brequires the business to have absolutely no internet connection at all.
  3. Cmakes it illegal for the business to ever buy from a local supplier again.
  4. Dis available only to businesses that have never used a computer before.

Question 603

[3 marks]business relocation
A factor that can lead a business enterprise to relocate is
  1. Athe high cost of transporting materials or goods to and from its current site.
  2. Ba steady fall in the rent charged for its current premises.
  3. Can increase in the number of satisfied customers near its current site.
  4. Da reduction in the taxes charged at its current location.

Question 604

[3 marks]business relocation
Another factor that can lead to the relocation of a business enterprise is
  1. Aa business wanting to move further away from all of its customers.
  2. Bthe need to be closer to its market or its source of raw materials.
  3. Ca business wanting to make its supply chain longer and slower.
  4. Da business wanting to increase the distance its goods must travel.

Question 701

[2 marks]motivating employees
A non-financial method of motivating employees in a business enterprise is
  1. Aa percentage commission added to every sale made.
  2. Brecognition and praise for work well done.
  3. Can annual salary increase tied to inflation.
  4. Da cash bonus paid at the end of every month.

Question 702

[3 marks]motivating employees
Job enrichment motivates employees non-financially by
  1. Apaying the employee a fixed wage regardless of the work actually done.
  2. Breducing the employee's tasks to a single, simple, repeated action.
  3. Cremoving all responsibility from the employee's job entirely.
  4. Dgiving an employee more varied and challenging tasks and greater responsibility.

Question 703

[3 marks]communication
Communication is important in a business enterprise because it
  1. Ais required only between a business and its customers, never internally.
  2. Bremoves the need for the business to ever hold a meeting again.
  3. Cis important only in a business that has no employees at all.
  4. Dcoordinates the different departments and people working towards a shared goal.

Question 704

[2 marks]communication
Effective communication also supports a business enterprise by
  1. Aimproving the quality of decisions made, since managers act on accurate information.
  2. Bmaking it unnecessary for a manager to ever consult a subordinate again.
  3. Censuring that no misunderstanding can ever occur within the business.
  4. Dguaranteeing that every decision made will always turn out to be correct.

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