AS BUSINESS - Paper 1- 2018

A new product has been launched onto the market. It currently has a low market share in a low growth market. Which category from the Boston Matrix is this product located in?

• Cash cow

• Dog

• Question Mark

• Start

The break-even chart below shows the change in break-even output arising from a change in total costs from TC1 to TC2. In the diagram, the margin of safety has....

• fallen by 30 units as a result of a fall in fixed costs.

• fallen by 20 units as a result of a fall in variable costs.

• risen by 20 units as a result of a fall in fixed costs

• risen by 30 units as a result of a fall in variable costs.

In the diagram below, demand for the product is most income inelastic between income levels of....

• £5 000 and £10 000

• £10 000 and £20 000

• £20 000 and £30 000

• £30 000 and £35 000

Which of the following statements is true?

• If sales volume is falling but sales revenue is increasing the price is falling.

• If price increases and sales volume falls there is a negative correlation between price and sales volume.

• A product life cycle diagram shows the sales of a product in relation to the price.

• Selling a product on credit increases both revenue and cash immediately.

Statement 1: ‘In a very centralised retail organisation, local shop managers decide on the store design.’

Statement 2: ‘In a decentralised retail organisation, local shop managers decide on the items of inventory to be held.’

Read statements 1 and 2 and select the correct option from the following options:

• Statement 1 is true. Statement 2 is true.

• Statement 1 is true. Statement 2 is false.

• Statement 1 is false. Statement 2 is true.

• Statement 1 is false. Statement 2 is false.

In 2016, a business had 120 employees. Its total labour costs were £2.7 million. In 2017 its labour costs increased by 3%. The number of employees remained the same. Its labour costs per employee in 2017 were

• £21 845

• £22 500

• £23 175

• £29 250

A manager aims to improve the motivation of an individual who has satisfied her esteem (or ego) needs. The manager should focus on the individual’s.....

• physiological needs

• security needs

• self-actualisation needs

• social needs

With reference to the table above which of the following statements is true?

• The revenue has an adverse variance.

• The material costs have a favourable variance.

• The profits have a favourable variance.

• The difference between the budgeted and actual profit is £15 000.

In 2016 a business had 12 employees and produced 60 units of output. Its capacity utilisation was 75%. In 2017 it achieved 100% capacity output with the same labour force. Labour productivity per employee in 2017 was.....

• 6.67 units

• 6 units

• 5 units

• 3.75 units

Which of the following statements is true?

• An increase in interest rates is likely to lead to more demand for houses.

• The population size is a demographic factor in the external environment.

• A soft approach to human resource management is likely to involve a low level of delegation.

• A mission will have a more specific target than a business objective.