Despite a significant increase in its sales revenue, a product’s market share falls from 60% to 50%. This product is a

Statement 1: ‘An increase in its level of capacity utilisation can help a business because it allows it more time for maintenance and repair of equipment.’

Statement 2: ‘An increase in its level of capacity utilisation can help a business because it allows it to meet unexpected increases in demand.’

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

The company’s operating profit is

Statement 1: ‘Lean production should reduce unit costs because it involves a business buying raw materials in greater bulk.’

Statement 2: ‘Lean production should reduce unit costs because it reduces wastage of raw materials.’

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

The table below shows four possible scenarios.

In which of these scenarios is strategic drift least likely to occur?

The table below shows the net annual return of an investment. After two years, the ARR (%) for this investment is

Statement 1: ‘External growth requires a business to integrate with another business that is located in a different country.’

Statement 2: ‘Organic growth requires a business to use its own resources to expand its size.’

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

The diagram below shows the original breakeven chart for a product. (Refer to Figure 2) The product’s fixed costs then decrease and its variable costs per unit increase such that, at its current output of 100 units, the total costs are still the same, as shown by point X. Which one of these statements is correct?

Statement 1: ‘Usually there is a negative correlation between changes in consumers’ incomes and changes in the quantity demanded of a product.’

Statement 2: ‘Usually there is a positive correlation between changes in the price of a competitor’s product and changes in the quantity demanded of a product.’

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

A business sells four products.

The table below shows the price elasticity of demand and income elasticity of demand for the four products.

A year ago, all four products had identical sales volumes. Since then, each product has had the same percentage cut in price and there has also been a fall in consumer incomes.

Which one of these products has the highest sales volume now?

The managers of a business propose to retain all of its profit to finance automation of its production. This is most likely to cause conflict with:

A business is able to reduce unit costs because of lessons learned throughout the period in which it has existed. This is known as:

Stated below are three possible changes for a business.

1. A reduction in wage levels.

2. An increase in labour productivity.

3. An increase in labour turnover.

Other things being equal, which of the following changes is the most likely to lead to an increase in employee costs as a percentage of turnover?

Statement 1: ‘In a SWOT analysis, improvements in infrastructure are a strength for

a business.’

Statement 2: ‘In a SWOT analysis, an increase in the minimum wage may be a

threat to a business.’

Read Statements 1 and 2 and select the correct option from the following options.