CAPE Management of Business Unit 1 · 2005 · Paper 1

26 questions and parts from this paper. Open one to see it in full, then practise it on Quelpr and get it marked against the mark scheme.

1. 1(a)2 marksDefine the phrase, "primary sector of the economy", giving ONE example.
2. 1(b)2 marksState ONE reason why the primary sector may NOT be an important part of the economy of a country.
3. 2(a)2 marksGive TWO examples of government intervention in the housing industry which may influence business decision making of Home-Sweet-Home Limited.
4. 2(b)1 markOutline ONE form of assistance a Small Business Association may be able to extend to Home-Sweet-Home Limited.
5. 32 marksDefine, with the aid of an example, the term "legal personality" as used in the context of business.
6. 4(a)1 markWhat is a multinational?
7. 4(b)1 markWhat is a franchise?
8. 4(c)2 marksState ONE reason why an individual would prefer to buy into a franchise rather than to start his/her own business.
9. 52 marksState ONE difference between a planned and a mixed economy.
10. 6(a)2 marksState ONE difference between formal and informal groups in business organisations.
11. 6(b)2 marksSuggest ONE reason why informal groups might be of concern to a manager.
12. 74 marksIdentify and explain TWO ways, other than strike action, that the workers can use to bring pressure to bear on management.
13. 8(a)1 markDefine "self-actualization" as used by Maslow.
14. 8(b)2 marksState TWO conditions in Ms Success' job that may prevent her from reaching a point of "self-actualization".
15. 92 marksOutline TWO factors that influence the "span of control" within an organisation.
16. 102 marksSuggest TWO benefits that may result from employing such a leadership style in Sea & Sun Resorts.
17. 11(a)1 markDefine working capital.
18. 11(b)2 marksIdentify TWO components of working capital.
19. 12(a)2 marksDistinguish between 'debt' and 'equity'.
20. 12(b)1 markExplain ONE financial consequence to the company, of increasing the ratio to 4:5.
21. 13(a)1 markWhat is a stock exchange?
22. 13(b)2 marksBoth public and private companies can trade on a stock exchange. True or False? Support your answer.
23. 14(a)1 markCompute the amount of Provision for Doubtful Debt to be included in the Balance Sheet as at 30 June 2003.
24. 14(b)2 marksWrite the journal entry to adjust the Provision for Doubtful Debt for the year.
25. 15(a)1 markCompute the cash inflow from sales in January.
26. 15(b)2 marksCompute the total cash inflow altogether from sales for the two months, January and February.