2022 Business Preliminary Past Paper

Question 1

Which of the following critical issues is most likely to result in business success?

a) Ineffective training and improved team morale
b) Examining trends in the marketplace during a downturn in economic conditions
c) Adapting new technological processes and overextending on finance
d) Review changes in the external environment and identifying areas where the business is different fro its competitors.

Answer 1

D - Review changes in the external environment and identifying areas where the business is different fro its competitors. (process of elimination, the other ones make no sense because inneffective training doesn’t lead to success and overextending means spending too much)

Question 2

Frank’s fine furniture has deicded to purchase the timber yard that he sues to source raw materials for the design of his products. This will allow him to have greater control over the quality and price of inpts

What type of acquisition best describes Frank’s decision?
a) Diversification
b) Horizontal integration
c) Forward vertical integration
d) Backward vertical integration

Answer 2

D) Backward vertical integration - this is because the business is integrating with one of its suppliers.

Its not forwards integration because this is when a business integrates with a firm it sells to (bakery merging with supermarket chain)

It’s not diversifcation because frank is buying something related to furniture
its not horizontal integration because hes not buying another furniture place.

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Question 3

Cassidy’s child care operates a business in her local area.

In which sector of the economy is Cassidy’s Child Care classified?

A) Tertiary
B) Quinary
C) Secondary
D) Quaternary

Answer 3

B - Quinary - These are services that can be done at home

Question 4

Along with balance sheets and cash flow statements, learn financial statements to find openning balances

Answer 4

Ok boss

Question 5

The owners of Sambher Roads and Civil Construction have implemented policies to ensure they comply with their local government regulations.
Which influence in establishing a SME are they addressing?

A) Legal
B) Market
C) Taxation
D) Sources of information

Answer 5

A - Legal. This is because when you implement policies for a gov, your adressing legal