Rustomjee Cambridge International School & Junior College
First Term Examination
SUBJECT: Business Studies GRADE: IX Div: ____
Question No. Marks Obtained
---I. Choose the correct alternative (10 marks) a. Which of the following is a good example of producer good ?
1. A MP3 player 2 .bicycle 3. tractor 4. toys
b. Which of the following is an example of a business objective in a private sector ? 1. maximize social benefit 2. growth
3. minimise profit 4. decrease market share
c. Which of the following is the role of an entrepreneur ?. 1. auditing 2. outsourcing
3. risk taking 4. following instructions
d. Which of the following is a feature of limited companies ? 1. They are usually multinationals.
2. They pay income tax on profits. 3. Members have limited liability 4. They raise capital by selling shares
e. Which of the following is a feature of globalisation ?
1. There is a fee for the interchange of technology and intellectual property across borders .
Name: _____________________________________________________Roll No.__________ Time: 3 hrs. Marks ________ Marks Obtained : ____
3. The flow of capital is restricted between nations.
4. There is a high degree of interdependence between nations.
f. What is probably the most common reason for changing the legal status of a business when growing.
1. To dominate the market. 2. To raise more finance.
3. To avoid the VAT registration. 4. To benefit from unlimited liability.
g. Which of the following is an example of working capital ? 1. machine
2. lorry
3. stocks of raw materials and components 4. office premises
h. Which of the following is an example of business operating in the secondary sector ? 1. Fish farm 2. commercial bank
3. confectionery manufacturer 4.supermarket
i. Which of the following is an economic objective of the governemnet ? 1. high interest rates
2. raising prices
3. reduce unemployment 4. reduce economic growth
Q.1. Define the following ( 10 marks) a Revenue : ____________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
b. Deindustrialization :
_____________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ c. capital employed : ____________________________________________________ ______________________________________________________________________ ______________________________________________________________________ d. National wealth : _____________________________________________________ ______________________________________________________________________ ______________________________________________________________________ e. Working capital : ______________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Q.2. Name the following (5 marks) a.Term used to describe an increase in the value of one currency against another Ans. ____________________________________________________________ b.A tax levied on the price of an imported product.
Ans. ____________________________________________________________ c. This describes a market in which consumer demand and sales are falling over time. Ans._____________________________________________________________ d.These industries are owned and controlled by a national government.
Ans. _____________________________________________________________ e. A measurable and time- limited business objective.
Ans. _____________________________________________________________
(a) Using the data given in Fig. 1,
(i) state the % of the workforce employed in primary activities in 2000,
... ... [1] (ii) calculate the number of people employed in tertiary activities in 2001.
... ... ... ... [2] (b) Explain why, in many countries, the percentage of the workforce employed in tertiary activities is increasing.
... ... ... ... ... ...[3]
(i) What is meant by a monopoly?
... ... ... ... [2] (ii) Explain what advantages the companies would expect to gain from this merger. ... ... ... ... ... ... ... ... [4] (iii) Consumer groups objected to the creation of this monopoly. Why do you think they did this?
... ... ... ... ... ... ... ... [4] (d) A market economy exists in many countries. Identify the main features of such a system.
... ... ... ...
... ... ... ...[4]
Q.4 [ 16]
(a) Table 2 shows the size of businesses by the number of people employed. Is using the number of employees to measure business size the best method? Explain your answer. ... ... ... ... ... ... ... ...[4] (b) In country A some of the largest businesses are in the public sector. Explain two objectives that a public sector business might aim to achieve.
... ... ... ... ... ... ...
... ... ... ... ...[6] (c) Some people say that business activity is bad because it can damage the
environment. Does business activity always damage the environment? Explain your answer.
... ... ... ... ... ... ... ... ... ... ...[6] Q.5 (a) Lloyd needs to raise capital to expand his business. He is thinking of forming a business partnership with a friend. (10 Marks) (i) Identify and explain two advantages of forming a business partnership.
Advantage 1: ... ... ... ... Advantage 2: ... ... ... ...[4] (ii) Explain one problem Lloyd might face in having a business partner.
... ... ... ... ... ... [3] (iii) Apart from forming a partnership, explain one other source of finance that Lloyd might use to expand his business.
... ... ... ... ... ... [3]
Q.6 (a) Dilip is a sole trader. Identify and explain one advantage and one disadvantage to Dilip of being a sole trader. (8 Marks)
Advantage: ____________________________________________________________ ______________________________________________________________________ Explanation: ___________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Disadvantage: __________________________________________________________ ______________________________________________________________________
Explanation: __________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
Q7. LL Drinks
( 8 marks)Q.5. LL Drinks is a public limited company which produces a variety of fruit drinks. The drinks are produced and sold in many different countries across the world. LL Drinks is a successful company, but the directors want to increase its share of the fruit drinks market around the world.
The following two ways of increasing market share have been identified.
Option 1: Increase sales of its most popular brand of drinks by starting to sell it in 10 more countries. The investment required to launch the drinks into these new markets is estimated to be $50m. This includes market research, marketing campaigns and
building factories to produce the fruit drinks in these countries.
Option 2: Take over a competitor which sells a different range of drinks. The cost of buying all the shares to take over this competitor is estimated to be $100m.
(a) The directors of LL Drinks want to increase its market share. Identify and explain
two other aims the directors might have for the business.
Aim 1: ... Explanation: ... ... ... ... ... ... ... Aim 2: ... Explanation: ... ... ... ... ... ... [8] (a) Referring to the information in the case, identify and explain one reason why people might want to become shareholders of LL Drinks. (4 marks) Reason 1: ... ...
Explanation: ... ... ... ... ... ... Q8.Jaipur Textiles is a private limited company. Its shareholders enjoy limited liability and received a dividend of $0.10 per share in 2009. ( 6 Marks) (i) What is meant by limited liability? (2) ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ (ii) What is meant by a dividend? (2) ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ (iii) How do private limited companies raise capital? (2) ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ Q7.Jaipur Textiles supplies two multinational companies. (3 Marks) (i) What is a multinational company? (1) ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ (ii) Describe one disadvantage of a multinational setting up a large retail complex in a developing country. (2) ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________
