Hob 2, 201% ‘A manufacturer introduces a new product design inan effortto make the product more efficient while maintaining or increasing cosumer appeal. The manufacturer’saction is geared towards adding cost @ vie (C) viability (D) competition Most Caribbean economies can be BEST described as @ nixed @) planned (©) traditional (D) free market The term ‘productivity’ is BEST defined as the (A) level of output of goods (B) amount of goods manufactured (@ _tatio of the level of production ‘output to the level of input (D) rate of the production output of goods in a firm in a given period Labour turnover may BEST be defined as the (A) recruitment and selection of workers (B) rate of redundancy in the organization rate at which workers enter and leave an organization (D) number of workers who have been separated from the organization Which of the following is a DISADVANTAGE of job production? @ Labour costs will be high if production is labour intensive (B) Workers tend to be less motivated because of repetition of work. (C) It is not possible to offer a wide variety of goods to meet consumers’ needs. (D) There will be high levels of stock in the form of unfinished goods at each stage of the process. Whichof the followingisNOTadimension of quality? (A) Retiabi (B) Durability @ Affordability (D) Conformance Dorret makes hand-made sandals. Her customers like to have unique models. Sales are increasing at a fast rate. Which ofthe following would be the BEST way to increase the capacity of Dorret’s business? Hire more staff. (B) Move to a new location. (C) Build more factory space. (D) Adopt up-to-date technology. A company in the energy sector is in the process of constructing new refinery tanks. ‘The MOST appropriate layout strategy for the company is (A) cellular (B) process (©) product fixed position @® GO ON TO THE NEXT PAGE10. The be negatively affected by @ continuous work-in-progress (B) _ precise planning of operations (C) __ wholehearted employee support {D) close relations with external suppliers fh of the following is considered 2 quantitative method of forecasting? (A) Market survey @ Moving average 13 (C). Panel consensus (D) The Delphi method Which of the following factors is LEAST likely to be improved by benchmarking? (A) Efficiency {B) Competitive edge ean ) Level of profitability ficiency of company is LIKELY to 12. Which of the following are advantages of a just-in-time production system? 1 Better work flow I, Reduced inventory and set-up time TIL Quick responses to changes in demand Land I only (B) Land II only : (C) Wand Itt only (D) | 1, Wand Which of the following is the MOST appropriate method for measuring the efficiency of production in a capital- intensive industry? (A) Profit per employee (B) Sales per employee @ Output per machine (D) Output per employee GO ON T0 THE NEXT PAGE.i. a4. Leis 14-15 refer to the following diagram showing stock levels for a product. Which of the following labels represents £5, the buffer stock? @ ti () Iv Time Which of the following labels represents the reorder level? ® wu © m @ W Which of the following is NOT a pricing 18. strategy? (A) Price skimming (B) Penetration pricing {©} Contribution pricing @ __ Distribution-based pricing ‘The MOST effective strategy to motivate 19. buyers to purchase a particular brand, product or service is, {A) cheep prices @ sales promotion (©) product improvement (©) _ positioning opportuniti One primary component ofthe promotional mix is (A) information (B) word of mouth @® sales promotion (D) potential customer The pricing method that uses the buyer’s point of view regarding the worth of a product is called (A) cost-plus pricing (B) _going-rate pricing (©) breakeven pricing @ value-based pricing GOON TA THE NEYT pane22, The expression ‘consumer buying behaviour’ refers to the (A) business (B) target market (©) final customers market segment Which of the following are forces in the microenvironment? 1. Customers HL. Government Hi. Competitors (4) Tend Monly @ iandiMonly Hand 111 only () Wand Penetration pricing refers to reducing the price of a product to attract customers (B) following the pricing strategies of the market leader (©) charging more than competitors for a status product (D) adding a percentage of profits to the total cost A division of Medic Care has a CT soanner to market to hospitals. Which of the following techniques would be MOST appropriate? Advertising Personal selling Word of mouth Sales promotions 24, 25, 26. 27, Which of the following pricing strategies has a business adopted when it sets low prices for its products? @ Business survival (B). Destroyer pricing (©) Competitive pricing (D) Product quality leadership ‘The MAIN concer of Internet shoppers is (A) delivery time (B) _ reduction in disposal incomes (C) issues related to products® return @ __ security of personal information Three MAIN factors taken into consideration when designing a sampling plan are (A) survey date, time and method of data collection @®) sample unit, sample size and sampling procedure (© sample unit, research instrument and survey data (D) type of survey, method of data analysis and timeframe In addition to selling appliances, Delmar’s Furniture Ltd offers delivery, installation and repair services, warranties, showrooms and waiting areas. Which of the following types of products BEST describes this offer? (A) Core (B) Actual (©) Hybrid @ — Avgmented GO ON TO THE NEXT PAGE.28, Pon Oneadvantageoffocusgroupresearchover 32. survey research is that Focus group research (A) uses secondary data (B) samples large populations (©) tends to suffer from interview bias provides greater insight into ‘customer needs Which of the following variables are MOST appropriate for segmenting a market for 33, radio stations? 1 Lifestyle Hi. income TI Gender (A) fand Honly @ Land iti only (©) Hand if only ©) 1, Manda Peter, a producer, is planning to introduce 34. @ new product in the shortest time. He is having financial difficulties and needs to know if consumers will purchase the product. Peter sends some of his employees to the shopping malllto interview shoppers. What sampling technique is Peter using? 35 @) Convenience (8) judgement (© Stratified ©) Clust ‘One problem faced by small firms is (A) lack of flexibility ®) poor staff relations (C) limited internal growth lack of economies of scale John, a small business operator, is organizing his financial records. In which ofthe following ledgers would the accounts of John’s creditors be placed? 2 Purchases ) General © Sales @) Cash Which of the following pieces of start-up information about a new business would be MOST important to a lending agency? (A) Prime time advertising slots (8) Inexpensive techniques of advertising @ Expected fixed cost and variable cost of the business (D) Direct comparisons with other firms in the same market Which of the following is an advantage of a franchise agreement to a franchisee? 8 © @) Payment of royalties Recognized product High market share Skilled workforce Economies of scale are LEAST affected by (A) finance (B) marketing C) technology Berane 120 GO ON TO THE NEXT PAGR.38. 39, What is the potential reward for the entrepreneur, his employee, the community, and the economy for venturing into business? (A) Rising cost (B) Social cohesion eS Economie growth Foreign exchange earning ‘The term ‘entrepreneurship’ is BEST defined as (A) accessing capital (B) making profits at al! cost (C) identifying the factors of production @ _wsing scarce resources to establish business entities The term which BEST describes the set of all product lines and items that a particular seller offers for sale is product @® ax B) choice © saimpie ©) collection By conducting a sales forecast, an entrepreneur is seeking to determine (A) the maturity stage of the product (8) how successful the business will be @ _ if there is sufficient demand for a product (D) how many competitors are in the market 40. Which of the following documents of a start-up business would be of GREATEST interest to a commercial bank? (@ Balance sheet (B) General journal (C) Income statement (D) Cash flow statement 41. Which of the following criteria is MOST apptopriate for measuring the size of a service provider within the same industry? (A) Ouiput @ Market share (©) Labour force (D) Market expenditure 42, Jeans very skilled in drapery making. She is planning on setting up a small business: Which of the following challenges is Jean MOST likely to face? (A) Paying taxes ® Sourcing capital (C) Managing all operations (D) The requirements of e-commerce 43. Which of the following are types of small business assistance given toentrepreneurs? 1. Consumer protection Ti. Entrepreneurial training Ill, Financial professional services (A) Land Honly (B) Land Hf only @ Wand in only ©) i, lanai IeAs. Jean is very skilled in drapery making. 45. She is planning to set up a small business. hich of the following challenges is Jean LIKELY to face? @ Sourcing capital (8) Forecasting demand (©) Deciding on a location (D) Meeting the requirements of e-commerce END OF TEST 1Q2 IF YOU FINISH BEFORE TIME JS CALLED, CHECK YOUR WORK ON THIS TEST. Mrs West added a 30% mark-up to the cost price of an item. What was the cost price of the item if she sold it for $156.00? “ @) e@ ©) 3 46.80 $109.20 $120.00 $202.80,