P R E L I M I N A R Y   E X A M I N AT I O N

Business Studies

General Instructions

• Reading time – 5 minutes
• Working time – 2[pic] hours
• Write using black or blue pen

Section I
20 marks
Allow about 25 minutes for this section

1 What is a stakeholder?

        A) Any body that has a general interest in the business
        B) The lack of sufficient funds to operate a business normally
        C) A part owner in a business
        D) Items that add value to a product

2 Which of the following is a stage in the business life cycle that
achieves the least sales in theory?

(A) Growth
(B) Maturity
(C) Steady State
(D) Renewal

3 How many workers would there be if the span of control of general managers
is 2 and there were only general managers and CEO in the business?

(A) 2
(B) 3
(C) 4
(D) 8
4 Firenzy Cotton Ear Retailers decided to takeover David Cotton Manufacturers.
What is this known as?

        A) Diversification
        B) Horizontal Integration
        C) Backward Vertical Integration
        D) Forward Vertical Integration

      Use the following information to answer questions 5 and 6.


5 Calculate the Shareholder’s Funds for Correct Printing.

(A) $25,000
(B) $40,000
(C) $60,000
(D) $90,000

6 Correct Printing’s owner has decided to invest more of his money into the
business. Which is the following is MOST likely to occur?

(A) An increase in Current Assets
(B) A decrease in Non-current Assets
(C) An increase in Shareholder’s Funds
(D) A decrease in Current Liabilities

7 Which of the following is a characteristic of a Process Layout design building?

(A) A sequential arrangement of machines
(B) Distinct work stations
(C) The storage of raw materials and inventories
(D) The grouping of machines that carry similar tasks

8 Targeting high income earners is targeting which market segment?...