Paper 1: Business 1

Which one of the following is a feature of a public limited company?

A manager makes all decisions alone and gives employees detailed instructions. Which leadership style is this?

A project costs £30,000. It has a 0.6 probability of earning £200,000 and a 0.4 probability of a loss of £50,000. What is the net expected value?

A researcher divides a population into age groups and selects a random sample from each group in proportion to its size. This is:

A product has an income elasticity of demand of +2.5. It is best described as a:

A factory can produce 6,000 units per week. It currently produces 4,500. What is its capacity utilisation?

Which statement best describes quality assurance?

A business uses 200 units a day. Lead time is 4 days and buffer stock is 300 units. What is the reorder level?

Which source of finance does not have to be repaid and does not dilute the owners' control?

Selling price is £12 per unit, variable cost £7 per unit and fixed costs £20,000. What is the break-even output?

12 employees left a business during the year. The average number employed was 80. What is the labour turnover?

Removing a layer of middle management is most likely to:

According to Herzberg, which one of the following is a motivator rather than a hygiene factor?

Stakeholder mapping usually classifies stakeholders according to their:

Revenue is £500,000 and cost of sales is £300,000. What is the gross profit margin?

Explain one benefit to a business of segmenting its market.

A company has operating profit of £1.2 million, total equity of £6 million and non-current liabilities of £2 million. Calculate its return on capital employed (ROCE). Show your workings.

Explain why a newly formed business might set a cash-flow objective rather than a profit objective.

Explain how a SWOT analysis can help managers assess the overall performance of a business.

Analyse one benefit and one drawback for a car manufacturer of adopting lean production.

Analyse why the objectives of shareholders and employees of a business might conflict.

Section C Many UK retailers have tried to grow by opening stores in emerging markets such as India and Southeast Asia. To what extent is market development into emerging markets the most effective way for a UK retailer to achieve growth?

Section D To what extent is financial reward the most effective way to improve the performance of employees?