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Business Activity Exam Practice Paper 1

The Purpose and Nature of Business Activity Exam Practice ✍🏽

WaWay, a large manufacturing business, makes cell (mobile) phones.

WaWay exports 30% of its products. It imports most of its raw materials to help reduce total costs.

All 400 of WaWay’s employees understand the importance of quality control. WaWay’s directors are researching ways of further adding value to their products.

(c) Outline two ways WaWay can add value to its products. [4]

Way 1: .................................................................................................................................

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Explanation: ..........................................................................................................................

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Way 2: .....................................................................................................................................

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Explanation: ..........................................................................................................................

.............................................................................................................................................. [4]

Classification of Business Exam Practice ✍🏽

Percentage of economic activity by sector in country X, Y and Z
  Primary Secondary Tertiary
Country X 37 19 43
Country Y 13 17 70
Country Z 75 15 20

(c) Outline two reasons why country Z may have a higher proportion of economic activity in the primary sector. [4]

Reason 1: .................................................................................................................................

...................................................................................................................................................

Explanation: ..........................................................................................................................

...................................................................................................................................................

Reason 2: .....................................................................................................................................

...................................................................................................................................................

Explanation: ..........................................................................................................................

.............................................................................................................................................. [4]

Enterprise, Business Growth and Size Exam Practice ✍🏽

Eka owns and manages She Works, a new business start-up in country X. It provides office space for female digital entrepreneurs for a monthly fee.

She Works has increasing sales revenue and Eka is considering opening another co-working space in a neighbouring town. Eka said β€œWithout the government’s support and training in the early stages of the business development, She Works would not have survived”

(e) Do you think the government should help start-up businesses? Justify your answer. [6]

(e) ……………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………..

…………………………………………………………………………………………………………………………..

…………………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………….

………………………………………………………………………………………………………………………….[6]

Types of Business Organisation Exam Practice ✍🏽

Tammy is a sole trader. She provides window cleaning services to home owners. Her business does not benefit from any economies of scale because it is small.

Tammy has just bought a new van and must make repayments to the bank every month. Tammy has to pay her employees every month. However, she gives her customers 2 months to pay.

(d) Explain one advantage and one disadvantage to Tammy of being a sole trader. [6]

Advantage: ............................................................................................................................

...................................................................................................................................................

Explanation: ..........................................................................................................................

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Disadvantage: ........................................................................................................................

...................................................................................................................................................

Explanation: ..........................................................................................................................

.............................................................................................................................................. [4]

Business Objectives and Stakeholder Objectives Exam Practice ✍🏽

Eka owns and manages She Works, a new business start-up in country X. It provides office space for female digital entrepreneurs for a monthly fee.

She Works has increasing sales revenue and Eka is considering opening another co-working space in a neighbouring town. Eka said β€œWithout the government’s support and training in the early stages of the business development, She Works would not have survived”

She Works’ external stakeholders want the business to expand further.

(c) Identify four external stakeholder groups. [4]

Stakeholder group 1: ............................................................................................................................

Stakeholder group 2: ..........................................................................................................................

Stakeholder group 3: ...........................................................................................................................

Stakeholder group 4: .................................................................................................................... [4]

 

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Check out Unit 1 Business Activity, Topic Guides, Questions and Solutions