WorksheetsA2 Paper 1 MCQ1
Total questions: 20
Worksheet time: 11mins
A decision to cut many jobs as part of a cost-reduction strategy is most likely to be opposed by which stakeholder groups?
Directors & customers
Shareholders & pension fund managers
Suppliers & customers
Employees & trade unions
Which of these conditions in a market or industry would make it harder to set realistic marketing objectives?
Established, long-term gentle decline in market size
Little scope for product innovation
Increasing numbers of new market entrants
Stable long-term market shares
Which of these statements about quality assurance is true?
Checks for quality take place throughout production
It leads to higher waste, but lower costs
Employees are freed from responsibility for their own work
It relies on a high level of inspection of finished products
Which motivational theorist was associated with "scientific management"?
Maslow
Herzberg
Mayo
Taylor
Business Y has a market share of 24% in a market where total sales are £8,000,000 per year. If the market grows by 10% next year but Business X sales stay the same, what will its new market share be?
18.2%
21.8%
22.6%
25.6%
Which of the following might result in a short-term reduction in capacity utilisation?
Closure of an unprofitable factory
Higher supplier prices
Successful introduction of new automated production line
Significant short-term increase in demand
Which one of these actions would be most likely to improve contribution per unit?
Improved purchasing prices negotiated with major supplier
Higher marketing spending
Larger discounts offered to customers
Increased costs of inventory obsolescence
A description of a tall organisational structure would be:
Few layers in hierarchy + narrow spans of control
Few levels in hierarchy + wide spans of control
Many levels in hierarchy + narrow spans of control
Many levels in hierarchy + wide spans of control
A business is most likely to be adversely affected by a significant rise in interest rates if it has:
High borrowings at variable interest rates
High cash balances and low inventories
High borrowings at fixed interest rates
High fixed costs and excess capacity
Two likely consequences of a high incidence of stock outs are:
Lower cost of sales and higher profit
Lower sales & lower customer goodwill
Higher sales and lower gross margin
Higher cost of sales and higher customer loyalty
A business has a single product which it believes has a price elasticity of demand of -1.6. If the business decides to increase the selling price of the product by 5% the likely effect is:
Demand decreases by 8%
Demand increases by 8%
Demand decreases by 3%
Demand increases by 3%
A common drawback of using secondary marketing research is that:
It takes time to collect and analyse the raw data
It can be out-of-date or not directly relevant
Survey respondents often do not understand the questions
Secondary research is more prone to sample bias
Company A plc has 20 million shares in issue and a share price of 25p per share. If the share price rises by 8%, what will Company A’s market capitalisation be at the new share price?
£5.0 million
£5.4 million
£8.0 million
£8.4 million
By how much would profit change if revenues rose by £150,000, variable costs increased by £75,000 and fixed costs fell by £25,000?
£50,000
£25,000
£100,000
£75,000
An internal influence on the achievement of HRM objectives is likely to be:
Changes in legislation
Age structure of the population
The prevailing corporate culture in the business
The level of unemployment in the economy
What variables does the Boston Matrix analyse?
Market share and market growth rate
Market share and profitability
Market profitability and business size
Market profitability and market growth rate
The sales budget assumed 2,000 units would be sold for £15 each; actual sales were £42,000. What was the sales variance?
£30,000 (A)
£12,000 (F)
£30,000 (F)
£12,000 (A)
Two likely benefits of a business successfully achieving a corporate objective of cost efficiency are:
Lower profit margin & higher return on investment
Lower contribution and higher breakeven output
Lower cash flow & higher profits
Lower unit costs & higher cash flow
A democratic leadership style involves the leader placing emphasis on:
Rules and regulations
Target setting and monitoring
Delegation and consultation
Long-term business objectives
In a decision tree, the financial value of an outcome (calculated by multiplying the estimated financial effect by its probability) is known as the:
Net gain
Probable profit
Likely result
Expected value
