2019 Business Preliminary Past Paper Wrong + Short Answers Flashcards
Which legal structure would best describe Milk Farmers Ltd?
a) Sole Trader
b) Partnership
c) Private company
d) Public Company
D - Public company because LTD means limited = limited liability company = public company
Which of the following is an example of a transforming resource?
a) Information
b) Intermediate goods
c) Human resources
d) Raw materials
C - Human resources - Makes a change to something
Mia develops a financial plan that forecast expenses, sales and expected profits.
What financial tool is Mia using?
A) Balance Sheet
B) Budget
C) Cash Flow Statement
D) Income Statement
B - Budget - Budget is what forecasts expenses, sales and expected profits
Which of the following is considered an on-cost in an employee’s remuneration package?
A) Commission
B) Overtime
C) Salary
D) Sick Leave
D - Sick Leave - On cost means extra payments which could happen.
Which of the following is a written statement that express the ideal position a business is aiming for in the future?
A) Mission Statement
B) Prime Function
C) Vision Statement
D) Situational Analysis
C - Vision statement (Future = vision, Mission = Aim)
Which of the following is a strategy that a business could use to avoid liquidity problems?
A) Diffrentiation Stategy
B) Leasing Equipment Required
C) Investing in New Technology
D) Investing in a product development
B - Leasing equipment required - If we rent a space it frees more cash that a business can use for operating.
As a result of a SWOT analysis, a hairdresser diacovers a new competitor is opening near her salon. She decided to reduce prices for services offered and introduce a new loyalty program for customers.
What is this hairdresser attempting to do with the swot analysis
a) Use a strength to overcome a threat
b) Use a strength to overcome a weakness
c) Use an opportunity to overcome a weakness
d) Use an opportunity to overcome a threat
A) Use a strength to overcome a threat - Opportunity refers to external things that are capitalised on whereas strengths are internal things that benefit a business
Mirage technology Pty Ltd. is a small company specialising in manufacturing computer hardware. Due to increased competition, this business is looking to invest in new technology and training programs to improve productivity. They have appointed a new manager to implement the changes. The manager has adopted a classical management approach. This has resulted in growing tension between management and employees.
a) Outline (sketch in general terms, indicate the main features of) the leadership style this manager using
The manager is using a classical management approachment. Classical management is autocratic, one way communication from managers to employees. With the aim of maximising efficiency and productivity of labour . Employees are thought of as an input into the business, much the same as machinery and raw materials
Mirage technology Pty Ltd. is a small company specialising in manufacturing computer hardware. Due to increased competition, this business is looking to invest in new technology and training programs to improve productivity. They have appointed a new manager to implement the changes. The manager has adopted a classical management approach. This has resulted in growing tension between management and employees.
b) Discuss (identify issues and provide points for and/or against) how adopting a different approach can help improve the relationship between management and employees.
Due to the classical management approach there is growing tension between the employees and the managers. This can be improved by adopting a different approach such as behavioural approach where the employees are considered valuable and there is a 2 way commmunication. Also with the added monetary or non-monetary rewards to each person, this can be used to motivate staff and improve the relationship between employees.
Mirage technology Pty Ltd. is a small company specialising in manufacturing computer hardware. Due to increased competition, this business is looking to invest in new technology and training programs to improve productivity. They have appointed a new manager to implement the changes. The manager has adopted a classical management approach. This has resulted in growing tension between management and employees.
c) Recommend 2 strategies that Mirage Technology can implement to manage change effectively.
3 changes you could pick from are Structural Change, Organisational change and Incremental change ????
Identify 2 goals of a business
Profit and Market Share
Explain 2 factors an owner would need to consider when establishing a business?
When establishing a business, the owner must consider whether they have the skills and entrepreneurial mindset. This means they must have a business insight
