KULLEĠĠ SAN BENEDITTU Boys Secondary, Kirkop

Transcription

1 KULLEĠĠ SAN BENEDITTU Boys Secondary, Kirkop Mark HALF-YEARLY EXAMINATION 2012/13 Track 3 (JL) FORM 4 BUSINESS STUDIES TIME: 1h 30min Section Global Mark Max. Mark Mark DO NOT WRITE ABOVE THIS LINE Name: Class: Section A (10 marks) Underline the correct answer: 1. An economy in which there are both public and private sectors is called (a) a market economy (b) a mixed economy (c) a planned economy 2. An economy which is completely controlled by the state is called (a) a capitalist economy (b) a free economy (c) a command economy 3. The following are characteristics of a free market economy; except: (a) The private sector decides what to produce according to demand (b) Prices are determined by demand and supply (c) Continuous government intervention in allocation of resources 4. A resource is (a) anything used by a business to produce a good or provide a service (b) the money needed by a firm for production (c) the fixed capital of a firm together with its liquid capital 5. A want refers to anything that (a) is necessary for our living (b) people would like to have (c) individuals should always have Kulleġġ San Benedittu BS Kirkop Page 1 of 7

2 6. Direct Services include: (a) drivers, office cleaners, factory workers (b) watchman, salesman, handyman (c) teachers, nurses, hairdressers 7. Consumers are: (a) that part of the distribution process which sells goods to the public (b) organisations which use the factors of production to make a product (c) persons who buy goods or services for their own use 8. Business Activity should aim to: (a) make profit for the owners at the expense of customers (b) satisfy people s needs and wants while earning decent profit for the owner (c) try to maximize profit even by adopting corrupt practices 9. The term scarcity in Business Studies means: (a) lack of enough resources to satisfy all people s wants (b) not enough money to buy all the things we want (c) the shortage of a product throughout certain periods during the year 10. Economics in Business Studies involves: (a) how the government runs the economy (b) making the best use of all the resources that what we have (c) how a country can make money SECTION B (20 marks) ALL QUESTIONS ARE TO BE ANSWERED ON THE FOOLSCAPS PROVIDED Remember to write down your name and class on each foolscap. You are also required to write down the section AND the number of each question besides your answer. Do NOT copy the questions given. Answer all questions in this section. (SHORT ANSWERS ARE REQUIRED) (2 marks for each answer) Explain briefly but clearly the difference between: (You can give suitable examples to illustrate your answer) 1. Goods & Services 2. Durable Goods & Non-Durable Goods 3. Unlimited Wants & Limited Income 4. Choice & Opportunity Cost 5. Direct Production & Indirect Production 6. Frictional Unemployment & Structural Unemployment 7. Working Population & Ageing Population Kulleġġ San Benedittu BS Kirkop Page 2 of 7

3 8. Wages & Salaries 9. Chain of Production & Interdependence of Industry 10. Letter & Memo (memorandum) SECTION C CASE STUDY 1 (20 marks) Analyse the following and then answer the questions laid down thereafter: Any entrepreneur starting up a business has a number of goals (aims/purposes/aspirations) that s/he wants to achieve. These are called OBJECTIVES. Over time the objectives of the business can change as the business grows or face difficulties. 1. List the three main objectives of any type of Business (3 marks) 2. Write down the three main reasons why business grow (3 marks) Most businesses start off small and grow in size by time by putting back profits into the business. This is called INTERNAL GROWTH (or Internal Expansion). 3. Briefly explain how firms can acquire internal expansion 4. On the other hand, the size of a firm can increase externally as a result of mergers or takeovers. Briefly but clearly distinguish between these two terms. 5. A series of mergers and/or takeovers could lead to a monopolistic situation. Explain the following terms: (i) Monopoly (ii) Oligopoly 6. What is meant by the term non-price completion in an oligopolistic market? You can give some local examples to substantiate your answer. 7. Briefly explain multinational companies. 8. List two positive effects of multinational companies on the local economy. 9. Concisely explain the meaning of diversification and globalization. Kulleġġ San Benedittu BS Kirkop Page 3 of 7

4 SECTION D CASE STUDY 2 (20 marks) The joining together of two or more firms is described as INTEGRATION, as one business becomes part of the other. 1. Explain what is the main difference between horizontal and vertical integration. You can make reference to the above illustration. 2. By making reference to the diagram above, give examples to highlight the difference between: (i) Vertical Integration FORWARD (ii) Vertical Integration BACKWARDS (4 marks) 3. Discuss two advantages of both types of VERTICAL integration. (4 marks) 4. Lateral Integration (also known as conglomerate) occurs when firms in different industries merge. List the main reason why this is done. Kulleġġ San Benedittu BS Kirkop Page 4 of 7

5 It is generally accepted that a large business has certain advantages over small one. Large businesses tend to dominate certain industries because size gives them advantages over smaller organizations. These advantages are called ECONOMIES OF SCALE. However, sometimes business growth results in disadvantages and when this occurs they are referred to as DISECONOMIES OF SCALE. 5. Distinguish between internal and external economies of scale. 6. List two types of internal economies of scale. 7. As already stated, a business can suffer from diseconomies of scale. When these happen, it negatively affects the business. Discuss one reason why internal diseconomies of scale can be experienced. In spite of the benefits of large-scale business operations, small firms continue to exist. Although there has been a fairly long-term trend towards the larger firm, in Malta there are a very large number of successful small business. 8. Discuss some reasons for the survival and success of small firms in Malta. You can mention some examples from your own experience in the town or village in which you live in. SECTION E CASE STUDY 3 (20 marks) Money is generally accepted as payment for goods and services and repayment of debts in a country. In itself, existing money is practically worthless: the starving man cannot eat it, nor the thirsty men drink it, but each may use it to buy food or drink. 1. List 4 main characteristic (or qualities) of money (4 marks) Kulleġġ San Benedittu BS Kirkop Page 5 of 7

6 2. Money is said to serve as a medium of exchange. This is the main and most important function of money. Explain this term. You can use a simple diagram to illustrate your answer. 3. Write down two other functions of money. A most remarkable feature of modern production methods is the way in which work is divided or specialized. The production of goods is broken down into a large number of separate and simple operations. Each worker is responsible for a particular part of the finished product and spends the whole of his/her time carrying out one of these simplified operations to form all the parts needed for the finished (or semi-finished) product. Thus, in many industries, the finished product is the result of the combined efforts of many hundreds of specialized workers. This technique of breaking down production into a large number of specialized tasks is described as the DIVISION OF LABOUR or SPECIALISATION. 4. There are two main ways of looking into specialization; namely specialisation by process and specialisation by product. Write short notes to explain each one of them. 5. List down two advantages and two disadvantages associated with specialization. (4 marks) 6. What is the main difference between a private limited company (ltd) and public limited company (plc)? Kulleġġ San Benedittu BS Kirkop Page 6 of 7

7 7. Write a short definition to explain the following terms in relation with setting up a limited company: (i) The Memorandum of Association (ii) The Articles of Association 8. Discuss the main role of The Malta Stock Exchange (Il-Borza ta Malta) SECTION F (10 marks) Write 2 short paragraphs (of about 5 lines each) to explain TWO of the following: (i) (ii) (iii) (iv) (v) Internal Structure and Span of Control (can include advantages & disadvantages of both wide and narrow span of control) Franchising The Importance of the Marketing Function to Business The Bartering system Nationalisation & Priviatisation Kulleġġ San Benedittu BS Kirkop Page 7 of 7