QCM : Business Enterprise Skills — 19 questions

Questions et réponses du QCM

1. What characterizes a franchise enterprise?

It develops its own brand and business model without outside restrictions
It manages the ownership and distribution of a country’s entire economy
It sells goods only through government-owned production systems
It operates under an established brand and business model by agreement with the franchise owner

It operates under an established brand and business model by agreement with the franchise owner

Explication

A franchise enterprise uses an established business model and brand under an agreement with the franchise owner. An independent business using its own brand is not a franchise enterprise.

2. Which statement correctly distinguishes an economic system from a franchise?

An economic system identifies a brand agreement, while a franchise controls national production
An economic system manages employees, while a franchise manages financial resources
An economic system concerns a country’s economy, while a franchise concerns one enterprise arrangement
An economic system concerns one business, while a franchise concerns national economic organisation

An economic system concerns a country’s economy, while a franchise concerns one enterprise arrangement

Explication

An economic system describes how a country organises ownership, production, and distribution. A franchise is an arrangement governing one enterprise’s use of an established brand and business model.

3. Which statement best describes motivation as a business factor?

It is a method for resolving disagreements between businesses
It is the management of the enterprise’s financial resources
It is the formal administration of employee records
It can produce benefits for the business enterprise

It can produce benefits for the business enterprise

Explication

Motivation is examined as a factor that can produce benefits for a business enterprise. It should not be confused with human-resource administration, which focuses on managing employees.

4. What is the primary area of responsibility of a Human Resource Manager?

Managing the enterprise’s financial resources
Calculating depreciation on business assets
Designing the country’s economic system
Managing employees within the business enterprise

Managing employees within the business enterprise

Explication

A Human Resource Manager performs functions concerned with managing employees. Managing financial resources is associated with a finance manager rather than a Human Resource Manager.

5. A motor van costs $24,000, has a scrap value of $4,000, and is expected to be used for five years. What is its annual straight-line depreciation?

$20,000
$4,000
$4,800
$28,000

$4,000

Explication

Straight-line depreciation is calculated as (cost − scrap value) ÷ useful life: ($24,000 − $4,000) ÷ 5 = $4,000 per year. The charge remains constant each year under this method.

6. A motor van has a book value of $15,360 before the 2017 charge. Using reducing-balance depreciation at 20% per annum, what is the depreciation for 2017?

$3,072
$4,000
$12,288
$15,360

$3,072

Explication

Reducing-balance depreciation is calculated on the declining book value: 20% × $15,360 = $3,072. Unlike straight-line depreciation, the amount is based on the asset’s current net book value.

7. Which statement best defines debt factoring in relation to business finance?

It is the purchase of an asset on credit for later use by the business
It is a method of improving business cash flow that has advantages and disadvantages
It is a depreciation method that spreads an asset’s cost evenly over its useful life
It is the calculation of an asset’s scrap value after disposal

It is a method of improving business cash flow that has advantages and disadvantages

Explication

Debt factoring is examined as a method of improving business cash flow, including consideration of its advantages and disadvantages. It is not a depreciation method or simply the purchase of an asset on credit.

8. Which situation best illustrates a virtual market rather than a physical market?

Customers inspect products in a warehouse
Customers exchange goods at a retail store
Customers purchase goods through an online platform
Customers purchase goods at a town market

Customers purchase goods through an online platform

Explication

A virtual market conducts transactions through electronic or online channels. A physical market requires transactions at a tangible location.

9. A factory that relies mainly on automated machinery and expensive equipment is best described as what type of production operation?

Labour-intensive
Consumer-intensive
Market-intensive
Capital-intensive

Capital-intensive

Explication

Capital intensity refers to relying relatively heavily on capital equipment and assets. Labour intensity instead emphasizes the use of workers.

10. Why is a decision tree important in business-enterprise planning?

It replaces all managerial judgment with fixed rules
It identifies the physical location of every customer
It records only the business’s past transactions
It evaluates decisions and their possible outcomes

It evaluates decisions and their possible outcomes

Explication

A decision tree is a planning tool used to evaluate decisions and their possible outcomes. It helps an enterprise compare alternative courses of action.

11. Why does manufacturing agricultural and industrial chemicals create a significant workplace safety concern for Chikoti (Pvt) Ltd?

The products can be sold through virtual markets
The business operates in a highly competitive market
The chemicals may harm human health
The products automatically eliminate workplace accidents

The chemicals may harm human health

Explication

Chikoti manufactures chemicals that may harm human health, creating a direct workplace hazard. Competition and sales channels do not themselves describe this health risk.

12. Which combination best represents Chikoti’s approach to protecting its workers?

Production quotas, tax incentives and financial audits
Higher wages, advertising campaigns and market research
Safety equipment, intensive training and accident reporting
Online sales, export promotion and price reductions

Safety equipment, intensive training and accident reporting

Explication

Chikoti protects workers with goggles, masks and safety shoes, provides continuous intensive safety training, and encourages accident reporting. Protective clothing and training address different aspects of workplace safety.

13. When deciding whether to build a new plant near Rusape Dam or contract out production, what should Chikoti evaluate?

Factors influencing the plant-location and production decision
Only the design of workers’ uniforms
Only the company’s advertising message
Only the number of foreign competitors

Factors influencing the plant-location and production decision

Explication

The decision requires evaluating factors that could influence developing a plant near Rusape Dam or contracting out production. The alternatives involve both location and production arrangements.

14. What best explains Chikoti’s sales pattern between 2015 and 2016?

Sales remained stable because macroeconomic conditions did not affect demand
Sales fell in both years because government policies reduced agricultural production
Sales fell in 2015 under negative conditions and rose in 2016 after supportive macroeconomic developments
Sales rose in 2015 under negative conditions and fell in 2016 after supportive macroeconomic developments

Sales fell in 2015 under negative conditions and rose in 2016 after supportive macroeconomic developments

Explication

Chikoti’s sales plunged to a low record in 2015 amid negative economic conditions, then demand increased in 2016 after positive macroeconomic developments. The two years reflected contrasting economic circumstances.

15. Which set of conditions was identified as contributing to Chikoti’s sales decline?

Safety training, protective clothing and accident reporting
Unemployment, inflation and cash-flow shortages
Environmental regulations, export access and trade liberalisation
Command Agriculture, ZIMASSET and industrial recapitalisation

Unemployment, inflation and cash-flow shortages

Explication

Unemployment, inflation and cash-flow shortages were identified as negative economic conditions contributing to the decline in sales. Environmental regulations concern compliance, while the listed policies were associated with rising demand.

16. How is globalisation represented in Chikoti’s business environment?

Trade barriers are removed, creating opportunities to enter foreign markets
Workplace safety rules replace international trade policies
Domestic production is restricted to one local market
Government regulations prevent businesses from selling abroad

Trade barriers are removed, creating opportunities to enter foreign markets

Explication

Globalisation is represented by the removal of trade barriers among nations and the resulting opportunity to enter foreign markets. It expands potential international market access rather than restricting firms to domestic sales.

17. Using current assets of $10,000 and current liabilities of $5,000, what is Taftan Wedding Specialists’ current ratio?

2:1
5:1
1:1
3:1

2:1

Explication

The current ratio is calculated as current assets divided by current liabilities: $10,000 ÷ $5,000 = 2:1. It includes all current assets, including inventory.

18. If current assets are $10,000, inventory is $5,000, and current liabilities are $5,000, what is the acid-test ratio?

2:1
1:1
3:1
0.5:1

1:1

Explication

The acid-test ratio excludes inventory, so it is calculated as ($10,000 − $5,000) ÷ $5,000 = 1:1. Unlike the current ratio, it measures liquidity without relying on inventory being sold.

19. Why did Taftan need adequate finance in 2016?

To eliminate all current liabilities through asset sales
To invest in new technology and recover lost market share
To reduce its inventory without changing its technology
To replace external finance with retained inventory

To invest in new technology and recover lost market share

Explication

Taftan faced intensified competition in 2016, so it needed finance to invest in new technology and recover lost market share. The other options do not describe the stated business need.

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Mémorisez les réponses avec 34 flashcards sur Business Enterprise Skills.

What defines a franchise enterprise's operation?

It operates using an established business model and brand under agreement.

What does an economic system describe?

How a country organises ownership, production, and distribution of goods and services.

What does the examination require regarding franchise enterprises?

A practical example to support their description.

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