FORM 3 BUSINESS STUDIES HALF YEARLY EXAM TIME: 1h 30 min. Sec E. Sec E. Case 1

Transcription

1 FORM 3 BUSINESS STUDIES HALF YEARLY EXAM TIME: 1h 30 min Name: Class: Index No. FOR TEACHER S USE ONLY SEC A Sec B Sec C Sec D Sec E Sec E Sec F TOTAL Case 1 Case 2 MARK ANSWER ALL SECTIONS SECTION A FILL IN THE BLANKS WITH THE WORDS PROVIDED [ /] capital durable needs consumer scale of preferences services choices resources single use opportunity cost The main purpose of the existence of businesses is to provide goods and to satisfy the and wants of society. Man s wants are insatiable and there are not enough to satisfy all of these. Due to this scarcity, people have to make. The average family, a businessman and the government would need to make a _, that is they spend their income on the most important things first before they spend money on other 1

2 things. Also, many times one has to choose on spending the money available on one of two items costing the same amount. The item given up is the of the chosen item. Businesses produce two types of goods: those used by everyone, goods and those used by businesses, goods. The goods that we buy fall under three categories which are items which are only used once, non-durable goods which have a short expiration date and goods which last for a long time. SECTION B UNDERLINE THE CORRECT ANSWER IN INK [ /] 1. The following are examples of basic needs (a) food, shelter, jewellery. (b) food, shelter, clothing. (c) shelter, clothing, i-phone. 2. The following are examples of capital: (a) machinery, office computer, printing press (b) manual tools, sea, banana plantation (c) ambulance, TV set at home, personal watch 3. The following form part of the public sector of the Maltese economy: (a) the Police Corp, the Maritime Authority, Go plc (b) Simonds Farsons Cisk plc, HSBC (Malta) plc, Bank of Valletta plc (c) Enemalta Corporation, Water Services Corporation, the Armed Forces 4. The following are business functions, except (a) Research and Development, Finance, Marketing (b) Purchasing, Personnel, Production Department (c) Purchasing Department, Public Registry, Legal Department 2

3 5.An organization chart shows (a) whether the firm is decentralised or centralised. (b) the internal structure of an organisation. (c) the contacts that the firm has with other firms. 6. A memorandum is used: a) to show the plan of a meeting to those attending. b) to communicate with a complaining client. c) to send a message to an employee. 7. A private-public partnership is: a) an arrangement between the government and private enterprises to carry out a project together. b) a business set up between two to twenty partners. c) an arrangement between the government and public enterprises to carry out a project together. 8. A Subsistence Economy is typical of: a) European countries where there is both public and private business ownership. b) Japan and the United States where all goods and services are provided by private entrepreneurs. c) Poor countries where people produce only what they need. 9. Local Councils: a) have the authority to see that businesses abide by laws. b) take care of a particular town or village such as garbage collection and the upkeep of playgrounds. c) provide free or almost free services to all the citizens of Malta.. Visual communication consists of he use of: a) graphs, pictures, maps, video clips etc to convey a message. b) facial expressions and gestures that give away how a person is feeling. c) s and web pages. 3

4 SECTION C Match the following terms to their meanings by writing the letter of the term next to its meaning: [ /] Term a Direct Production b Legal tender (of money) c Profit d Command Economy e Limited liability Meaning The factor payment for the entrepreneur If the business fails private belongings are not at risk. Heads a local council, as s/he would have obtained the majority of votes. Producing the thing you need on your own All decisions are taken by the General Manager f Not a separate legal entity It is acceptable as repayment of debts or as payment for goods. g Mayor h Centralisation A meeting called quickly due to an urgent matter All factors of production are owned by the government and no private businesses can exist. i Notice If someone breaks the law within the business the owner/s will be held responsible, j Ad hoc meeting A written form of communication aimed for all those who pass by a notice board. 4

5 SECTION D GIVE TWO EXAMPLES OF EACH OF THE FOLLOWING:[ /] a) The first forms of money b) Single use items c) Computer use in business d) Voting during a meeting e) Government Departments f) Reasons for business activity g) Jobs in the Primary Stage of production h) Commercial services i) Wants j) Items which do not pass through the secondary stage of production 5

6 SECTION E You have two case studies. Read the text and then answer the questions which follow. Both case studies are to be tackled. CASE STUDY 1 Tom is the sole owner of a Stationer s shop. He has to take care of every aspect of his business, from controlling his finances, to ordering and buying goods from suppliers, storing the goods and putting them on the shelves for sale. He has to do his own advertising and is always in his shop to sell his wares.. He also took care of recruiting his shop assistant. On the other hand, PRICE-SLASHER Ltd, a supermarket at the end of the street, is owned by a number of shareholders. It employs a large number of personnel divided into different departments, which focus on their relevant business function. 1. What type of business is: ( /2) a) Tom s Stationery shop b) Price-Slasher Ltd 2. Which business functions are related to: ( /4) a) Buying goods from suppliers to be resold b) Advertising and selling c) Recruiting Personnel d) Dealing with money 3. a)which are the two business functions which are not mentioned? b) Why can a shop or a supermarket do without these two functions? ( /4) 4. In a large business like Price-Slasher Ltd they would have a diagram to show how the personnel are organised in their departments. What is this diagram called? ( /1) 5. Look at the diagram on the next page and answer the questions that follow: 6

7 General Manager Board of Directors Finance Personnel Marketing Purchasing Manager Manager Manager Manager 3 Accountants 2 Recruitment 3 AdvertisIng Officers Officers Chief Buyer cashiers 2 clerks 1 clerk 4 storekeepers 6. Fill in the missing title and rewrite it here ( /1) 7. What is the span of control of the Marketing Manager? ( /1) 8. How many levels of authority are there from the store-keepers to the board of directors? ( /1) 9. Is this a tall or flat organisation? ( /1). To whom would the chief buyer delegate responsibilities? ( /1) 11. Illustrate the chain of command when an order is given by the board of directors to the cashiers. ( /2) Board of Directors Cashiers 12.What is Decentralisation? ( /2) 7 Total /20

8 CASE STUDY 2 In primitive times there were no shops from where people could buy what they needed. After observing nature, man learnt new skills such as conserving animal hides to use as clothes, raising crops and animals for food, making weapons out of metal and hard stones, making clay pots etc. Not everyone became skilled in the same things. The more skilled they became, the more they produced and ended up with extra produce which would go to waste, especially where it concerned food. As such the concept of exchanging things cropped up. However this had its disadvantages. So someone came up with the idea of using a medium which was considered as precious and acceptable by all in order to buy things with, and thus money was invented. 1.Give the terms for: ( /2) a) exchanging things without the use of money b) extra produce 2. Explain the problems caused by this system: ( /4) a) There had to be a double coincidence of wants b)divisibility of goods wasn t possible 3. Mention the four characteristics of money: ( /4) 4. Which are the three functions of money? ( /6) 5. What is division of labour? ( /2) 6. Give one advantage and one disadvantage of specialisation by process.( /2) Avantage Disadvantage 8

9 SECTION F Give detailed answers to the questions on any ONE of the following three (one is on the next page): ( marks) 1. Partnerships and Companies are both business concerns found in the private sector. They both involve a number of people as owners. a) Mention 2 reasons why partnerships may form. ( 2 marks) b) Who can help partners raise more capital?( also define the role of this person/these people) (2 marks) c) Partners should make a contract between themselves. What is the contract known as? Mention two items found in it. ( 2 marks) d) Mention and explain two advantages that a limited company has over a partnership. ( 2 marks) e) Who are the owners of a company and who controls it? (1 mark) f) Where and to whom would a public company sell its shares? (1 mark) OR 2. Communication is a very important aspect in business. In fact where there are good communications a business is more likely to be efficient and successful. a) Give two internal purposes of communication. ( 2 marks) b) List four methods of communication giving one example of each( 2 marks) c) Which are the four elements in communication? Illustrate by an example. (2 marks) d) What is the grapevine effect? Mention and explain two other reasons for bproblems in communication. ( 2 marks) e) Draw up a memo sent by Mr Tibbs General Manager to Ms Blake secretary, using today s date and Ref No 5432 c, where he asks her to prepare an agenda for the next committee meeting, which is to be held on the 20 th of February at the Board Room. ( 2 marks) OR 3. All businesses need resources in order to produce and sell goods and services. a) Which are the four factors of production? Explain each one briefly.(4 marks) b) Which are the two types of capital? Give two examples of each. (2 marks) c) Explain with examples the following: i) Professional workers ii) Skilled workers iii) Semi-skilled workers iv) Unskilled workers ( 2 marks) d) Who is the entrepreneur? Why is s/he the most important factor of production? And what is the factor payment for enterprise? ( 2 marks) 9

10 Number of question chosen