@ MohannahEduei 2016 PRELIMINARY EXAMINATION Business Studies General Instructions ‘Reading time 5 minutes © Working time —3 hours # Write using black or blue pen Black pen is preferred «Draw diagrams using pencil #Board-approved calculators may be used Write your Centre Number and Student Number at the top of page 7 Total marks - 100 (Section) Pages 2-6 20 marks ‘* Attempt Questions 1-20 + Allow about 35 minutes for this section [Section Il Pages 7-11 40 marks Allow about 60 minutes for this section © Attempt Questions 21-25 ‘© Allow about 1 hour and 15 minutes for this section (Section 1) = Page 12 20 marks + Attempt Question 26 + Allow about 35 minutes for this section Page 13 20 marks + Attempt Question 27 or Question 28 * Allow about 35 minutes for this sectionSection I 20 marks Attempt Questions 1-20 Allow about 35 minutes for this section Use the multiple-choice answer sheet for Questions 1-20. 1 Through the provision of employment, what does business provide employees? (A) Wealth and risk (B) Income and quality of life (C) Entrepreneurship and income (D) Profit and wealth 2 For which business legal structure is the goal of maximising share price most relevant? (A) Sole trader (B) Partnership (C) Private company (D) Public company 3 Management at WalkerZ Shoes P/L create staff rosters for three months at a time. Which aspects of the classical management approach does this demonstrate? (A) Leading and controlling (B) Controlling and motivating (©) Organising and controlling (D) Planning and organising 4 When training staff to ensure they carry out the production processes in order, which key business function is being utilised? (A) Operations (B) Marketing (C) Finance (D) Human resources ©Mohannah Education 2016 25 Joe's customers seek payment through use of card rather than cash. For Joe to manage a change to a new system, what is the first step he would need to take? (A) Set achievable goals (B) Identify the need for change (©) Overcome staff resistance to change (D) Employ a management consultant 6 Which of the following personal qualities is a reference to the effort required to successfully establish a small to medium enterprise? (A) Qualifications (B) Skills (©) Motivation (D) Vision 7 Which of the following items would be found on an income statement and a cash flow statement? (A) Revenue from sales @) Credit income (C) Cost of buildings (D) Total debt 8 Which of the following is a legal influence affecting the set up of a small to medium enterprise? (A) Minimum wages costs (B) Local zoning restrictions (C)_ Buying a franchise licence (D) Paying federal and state taxes | 9 Which tool can be used to assess pattems in financial performance? (A) Breakeven analysis (B) Sales targets (C) Trend analysis (D) Cash flow projections (© Mohannah Education 2016 310 i 12 13 In order to increase market share, Charmaine’s Dresses P/L offers significant discounts for on-line purchases ‘What external influence in the business environment is this? (A) Financiat (B) Economic (C) Competitive situation (D) Technology ‘When in the business lifecycle would stock turnover be lowest and staff turnover be highest? (A) Establishment (8) Growth (©) Maturity (D) Post-maturity Following severe flooding, HLP Insurance Ld sets up a temporary office to make claims and payments for affected insurance-holders easier. Which skill of management has been applied? (A) Adaptability to change (B) Reconciling the conflicting interests of stakeholders (©) Flexibility (D) Decision-making Sambummed Electronies P/L tests the standard and functionality of all imported components before using them. What operations management process is involved? (A) Quality management (B)_ Input controls (©) Planning objectives (D) Corrective action ©@Mohannah Education 2016 4Refer to the information in the Table below, and your own knowledge, to answer Questions 14 and 15. Selected financial data for Dien Toys PA. Financial indicator _[ Budgeted result (S) | Actual result (8) Sales 200,000 190,000 Total cost of stock sold 100,000 90,000 Expenses 50,000 45,000 14 Which of the following can be concluded for Dien Toys P/L? (A) Gross profit is lower than planned, as sales have fallen (B) Gross profit is as expected, as prices rose (©) Gross profit is higher than planned, as expenses fell (D) Gross profit is as expected, as cost of stock fell 15 How has net profit been affected by the difference in actual and budgeted results? (A) Given the budget, net profit is as anticipated (B)_ Given the budget, net profit is $2,500 lower than it should be (C) Given the budget, net profit is $5,000 lower than it should be (D) Given the budget, net profit is $5,000 higher than it should be 16 Ifa production process involves both fixed and variable costs then which of the following must change if selling prices are lowered? (A) Total revenue (B) Cash flows (C) Total costs (D) Breakeven point 17 Which of the following is NOT critical to business success for all legal structures? (A) Sustaining competitive advantage (B) Avoiding over-extension of finance (C) Planning and control (D) Managing staff (© Mohannah Education 2016 518 19 20 ‘What is a disadvantage associated with choosing a franchise as a business? {A) Cost (B) Location (©) Reputation (D) Cash flow Economic circumstances force an increase in interest rates. What effect would this have on achieving the business goals? (A) Profitability and short-term growth will be achieved less quickly (B) Vision and cash flow will be achieved more quickly (C)_ Long-term growth will be delayed, but no change to vision (D) Profitability and vision will both be unaffected A manager senses market opportunities by hearing what customers say, and then organising and creating new ways of meeting their needs. Which personal quality does the manager display? (A). Motivation (B) Skills (©) Entrepreneurship {D) Qualifications (© Mohannah Education 2016 62016 PRELIMINARY EXAMINATION Business Studies Centsa Nome Section II Student Number 40 marks Allow about 1 hour and 15 minutes for this section Answer the questions in the spaces provided. These spaces provide guidance for the expected length of response Question 21 (10 marks) Define cach of the following influences on business with reference to an example. Products Location Resources ©Mohannah Education 2016 7Question 22 (10 marks) (a) Distinguish between autocratic and participative/democratic leadership. 4 (b) Explain how a contingency approach to management affects the use of the classical and the behavioural approaches. 6Question 23 (5 marks) Contrast voluntary and involuntary cessation of business. End of Question 23 (©@Mohannah Education 2016 9Question 24 (5 marks) Explain the importance of recruitment and training to human resource management processes, 5 End of Question 24 ‘©Mohannah Bdueation 2016 10Question 25 (10 marks) a) Outline FIVE (5) conflicts that can arise between stakeholders of business. 5 b) Explain how managers can reconcile conflicts arising between intemal and external stakeholders. 5 End of Question 25 ‘© Mohannah Eduestion 2016 uu2016 PRELIMINARY EXAMINATION Business Studies Section DI 20 marks Attempt Question 26 Allow about 35 minutes for this section Answer the question in a writing booklet, Extra writing booklets are available. In your answer you will be assessed on how well you: * demonstrate knowledge and understanding relevant to the question = apply the hypothetical business situation = communicate using relevant terminology and concepts * present a sustained, logical and cohesive response in the form of a business report Question 26 (20 marks) NewStuff P/L is a business that provides research and media services for business. It designs advertising campaigns, social media posts and novel ways to engage with stakeholders of business. NewStuff P/L is at the end of a period of steady growth in its lifecycle and income is steady, but no longer increasing. Threats are emerging from new market entrants and some customers are shifting to other businesses. Managers at NewStuff P/L is concerned that the business goals may not be met and that staff involvement may fall, You are to write a business report to the managers of NewStuff P/L. In it you are to: Describe the challenges that arise for NewStuff P/L at this point in its lifecycle "Explain how the business goals can be achieved, and = Assess how skills of management can address the issues NewStuff P/L faces. ©@Mohannah Education 2016 12Section IV 20 marks Attempt either Question 27 or Question 28 Allow about 35 minutes for this section Answer the question ina SEPARATE writing booklet, Extra writing booklets are available. In your answer you will be assessed on how well you: = demonstrate knowledge and understanding relevant to the question = use relevant business case study/studies and contemporary business issues = communicate using relevant business terminology and concepts + present a sustained, logical and cohesive response Question 27 (20 marks) How do influences in establishing small to medium enterprises affect achieve business planning? OR Evaluate the effectiveness of forecasting, monitoring and evaluation to business planning processes. 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