Business Enterprise Skills Paper 2 Specimen D 2026

Answer this when you sit the paper.

1. Athe price a good is offered for sale at
2. Bthe number of units produced in a day
3. Cthe cost of the materials used in a good
4. Dhow well a good meets customer expectations

1. Aa supplier
2. Ba shareholder
3. Ca competitor
4. Dan employee

1. Aunemployment pushing her into self-employment
2. Ba legal duty on graduates to register a business
3. Can instruction from the local authority to trade
4. Dthe wish to reduce the tax paid by her household

1. Aformal qualifications and steady office hours
2. Binnovativeness and willingness to take risks
3. Ccaution and a preference for a fixed salary
4. Dseniority in age and long service in one job

1. Aa full-page advert in a foreign magazine
2. Bsponsorship of an international sports team
3. Ca television advert during a national final
4. Dthe local newspaper and social media

1. Aa lack of recognition and concern for their welfare
2. Bthe introduction of automated cooking machinery
3. Cthe growing number of orders from customers
4. Dthe decision to move to larger rented premises

1. Afinancial resources
2. Bhuman resources
3. Cintangible resources
4. Dphysical resources

1. Anatural
2. Bphysical
3. Cfinancial
4. Dhuman

1. Areduces the wages she must pay her employees
2. Bshortens the time each dish takes to cook
3. Cbuilds customer loyalty and repeat business
4. Dlowers the cost of the ingredients she buys

1. Asuppliers are obliged to cut their prices
2. Bthe enterprise pays a higher rate of tax
3. Ccustomers switch to rivals and the brand suffers
4. Dthe enterprise must register as a company

1. Aprotection from competition in the local market
2. Bindependence and the profit the venture earns
3. Ca fixed monthly salary paid by the state
4. Dfreedom from paying tax on business income

1. Areduce the amount of tax government collects
2. Blower the number of firms competing in markets
3. Cincrease the country's reliance on imports
4. Dcreate jobs and add to national output

1. Aa ban on advertising by small enterprises
2. Baffordable loan finance and business training
3. Chigher registration fees for new businesses
4. Dtighter limits on the goods they may sell

1. Aa legal ban on trading in urban areas
2. Blimited access to affordable finance
3. Ca shortage of people seeking employment
4. Dan absence of demand for their products

1. Atrade only outside the country of registration
2. Bmust be registered as public limited companies
3. Cemploy relatively few workers and have modest turnover
4. Dare owned entirely by the government of the day and its agencies

1. Agrowth
2. Bprofit maximisation
3. Csocial responsibility
4. Dsurvival

1. Atakeover of a rival
2. Bmarket domination
3. Cprofit maximisation
4. Dsurvival

1. Acorporate social responsibility
2. Bcost minimisation
3. Cmarket share growth
4. Dprofit maximisation

1. Abuilds trust and protects the enterprise's reputation
2. Blowers the wages the enterprise has to pay to its staff
3. Cshortens the time taken to produce each unit
4. Dexempts the enterprise from paying tax on its profits

1. Apaying a bribe to secure a government contract
2. Bpublishing audited accounts after year end
3. Cpaying suppliers within the agreed credit period
4. Drecalling a faulty product at the firm's expense

1. Aemployees become less willing to stay with the firm
2. Bshort-run costs such as fair wages and safe disposal rise
3. Ccustomers quickly lose confidence in the firm's products
4. Dthe enterprise is no longer allowed to keep financial records

1. Athe age of the enterprise's oldest fixed asset
2. Bthe number of customers served in the past month
3. Cthe cost of the finance and the period it is needed for
4. Dthe number of branches the lending bank operates nationally

1. Aan advance from a customer
2. Ba bank overdraft
3. Ca long-term loan
4. Dtrade credit

1. Athere is no fixed interest or repayment obligation
2. Bownership and control of the business are unaffected
3. Cshareholders may not vote at company meetings
4. Dthe finance must be repaid within twelve months

1. Acollateral must be pledged against the amount raised
2. Bownership and control are diluted among more people
3. Cinterest must be paid whether or not profit is made
4. Dthe finance has to be repaid within five years

1. Ainterest and capital must be repaid whatever the profit
2. Bthe lender gains a vote at every annual general meeting
3. Cthe owners must give up part of their stake in the business
4. Dthe loan cannot be secured against the firm's assets

1. Aborrows against the value of its stock of goods
2. Breceives a grant from a government support scheme
3. Cdelays paying suppliers for goods already received
4. Dsells its debts to a factoring company for cash

1. Afind out what customers want before spending money
2. Bcalculate the tax due on the year's trading profit
3. Cdecide the legal form the enterprise should take
4. Dprepare the wage slips issued to new employees

1. Afixes the price customers are prepared to pay
2. Bprovides the finance needed to launch the product
3. Cshows whether demand for the product actually exists
4. Dremoves competitors from the market being entered

1. Aits findings apply only to overseas markets
2. Bit can only be carried out by a listed company
3. Cit costs money and takes time the venture may lack
4. Dit is illegal to question customers without a permit

1. Aresearchers are forbidden to speak to real customers
2. Bthe results are only released after the product launch
3. Cconsumer tastes can change after the research is done
4. Dresearch findings are never written down for reference

1. Ashows how long the owner has lived in the area
2. Blists the assets the bank may seize on default
3. Cevidences the demand behind the sales forecast
4. Dsets the interest rate charged on the loan

1. Asecondary
2. Btertiary
3. Cprimary
4. Dquaternary

1. Aquaternary
2. Bsecondary
3. Ctertiary
4. Dprimary

1. Aprimary
2. Bquaternary
3. Csecondary
4. Dtertiary

1. Aa fall in the price of its finished products
2. Ba rise in the number of shares it has issued
3. Ca change in the company's financial year end
4. Drising rent and a need for more space to grow

1. Adisruption to output and the loss of some staff
2. Bthe loss of its separate legal identity
3. Can automatic rise in its rate of company tax
4. Dthe cancellation of its trading licence by law

1. Amove their head offices to another country
2. Brelocate there and create local employment
3. Craise the prices charged to local customers
4. Dreduce the range of goods they manufacture

1. Afreedom from the tax laws of the home country
2. Ban end to competition in the domestic market
3. Clower wages for staff employed at home
4. Daccess to a larger customer base and higher sales

1. Aavoid the cost of transporting goods abroad
2. Breduce the amount of market research needed
3. Ctrade without any documentation at the border
4. Dspread risk across several different economies

1. Ait works without any internet or network connection at all
2. Bit leaves a permanent record and can carry attachments
3. Cthe tone of the sender's voice is easier to judge
4. Dthe receiver must reply before the end of the day

1. Ait costs more than sending a letter by post
2. Bmessages can be missed and tone is easily misread
3. Cdocuments cannot be attached to the message
4. Da copy of the message cannot be kept on file

1. Aallows face-to-face discussion without travel costs
2. Bproduces a written record of every point that is agreed
3. Cworks well even where internet connections are weak
4. Dreduces the number of managers each office employs