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A’ LEVEL MANAGEMENT OF BUSINESS QUESTIONS AND ANSWERS 1ST EDITION TURN- UP COLLEGE

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Despite the advantages of large firms, many small businesses are very successful. Give three reasons that justify this statement. [6] Answer Reasons might include: - - Personalized services - Tailor- made products - Convenient opening times - Closeness / proximity to customers - Subcontracted by large firms etc. 2. (a) Explain the term “de- integration.” [3] (b) Why do firm “de- integrate.” [4] Answer (a) De- integration refers to the process of a firm or group reducing the scope of its activities. It may take different forms such as de-merging, divestment, contracting – out and management buyouts. (b) Reasons for de-integration - Raising finance - Saving management time and expertise - Increased efficiency - Defensive reasons for example to avoid take over as a result of poor performance. 3. Suggest two possible reasons for the government’s privatization policy. [4] Answer - To relieve the government from financing the parastatals. - To improve efficiency - To empower the citizens of the country economically etc. 4. (a) Distinguish between the public sector and private sector of an economy. [2] Page 9 Turn -Up College ‘A’ Level Management revision book (b) Explain why some goods and services are provided by the public sector in your country. [3] Answer (a) Public sector – government ownership and aims at improving social welfare. Private sector – individual ownership and aims at maximizing profit. (b) Reasons might include: - - To aid affordability to every citizen - For strategic reasons. - To ensure continued supply of the product. - To ensure continued finance as government is the only body that fund industries like ZESA etc. 5. (a) Define diseconomies of scale. [2] (b) Explain two different types of economies of scale from which a large retailer might benefit. [3] Answer (a) Diseconomies of scale are an increase in the cost per unit as a result of increased scale of production. (b) Managerial economies of scale, technical economies of scale financial economies of scale marketing economies of scale. Risk bearing economies of scale. 6. State and explain three ways in which governments could encourage businesses to invest. [6] Answer Ways might include: - Tax holidays - Subsidies - Building factory shells - Providing land at affordable rent - Finding markets by farming links with other countries. 7. How might prospects of small businesses be affected by a very low level of economic growth? [4] Page 10 Turn -Up College ‘A’ Level Management revision book Answer - Low economic growth results in reduced business activity. - Demand is reduced - Reduced incomes of the people - Reduced employment levels - Reduced availability of inputs. Etc

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A’ LEVEL MANAGEMENT OF BUSINESS

Voorbeeld van de inhoud

‘A’ LEVEL MANAGEMENT OF
BUSINESS QUESTIONS AND
ANSWERS




1ST EDITION




TURN- UP COLLEGE

, Page 2




PUBLICATION STAFF

Publishing Director
Sam Madzingira

Copy Proof Reader
Curriculum Development Unit Zimbabwe

General Editor
C.K Mhuri

Contributors
Mr. E. Madzingira, Mr. Tadu

Text Printers
Chiedza Muchena, Crystabell Mudzingwa, Artwell Ncube

Publisher
Turn-Up College Zimbabwe
Office 28, N0. 131 Trade Centre Building
13th /14th AV Bulawayo

ISBN 978 0 7974 4553 6




Turn -Up College ‘A’ Level Management revision book

, Page 3




Copyright © by Turn-Up College
First printed 2007
Re-printed 2008; 2010, 2011


All rights reserved; Printed in Zimbabwe, no part of this book may be reproduced, stored
in a retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without prior written permission from the
publisher or a license permitting restricted copying in the Zimbabwean Copyright Act.
This study material has been provided in good faith. It is illegal to reproduce it. Should it
be reproduced, we will take legal action against that person and anyone else connected
thereto. For further information contact Turn -Up College 28 Trade Centre, 131 Fort
Street, between 13 and 14th Street, P.O. Box 2759, Bulawayo.




Turn -Up College ‘A’ Level Management revision book

, Page 4




Foreword

I had the opportunity of discussing this book with several educationists, teachers and
students when it was in the process of making, and I felt at once that it was likely to
prove unusually useful. It gathers together a great deal of information which must
otherwise be delved for in many books and all this is arranged judiciously and on
practical lines. The authors’ outlook might be described as one of liberal commonsense
clarity, simplicity of expression, and examination - skills - focused. Our study packs are
there to offer a canvas for Zimbabweans to showcase their best ideas to help transform
the country into a knowledge- based society where citizens are free to express their
creativity, knowledge and ingenuity. We have set challenging objectives, but we believe
that only by striving to achieve the highest, can we elevate ourselves above the elements
which tend to hold our country back. However, if your see anything where you feel we
may have failed to deliver, and where we may have failed on issues such as content,
depth, relevance and usability, please let us know by using the contact numbers
(09) 61226/61247, 0773 247 358; or Box 2759 Byo; email at .
We are here to listen and improve.


In my days as a teacher and as a student I should have welcomed this book warmly
because:
(i) It approaches the syllabus wholistically
(ii) It uses simplified expression
(iii) It has an in-depth coverage of content
(iv) It provides examination skills at the earliest stage of studying
(v) It provides local, international and commonplace examples; illustrations and case
studies.
(vi) It provides intelligent questions and answers of the examination type on a chapter
by chapter basis
(vii) Last but not least, it provides a clear platform for self-evaluation as one prepares
for the final examinations.

I have no doubt that learners and educators would as well find this book to be the best. It
is certainly a manual for success. Every one would find it worthy to have his own copy. I
should not be surprised if the Turn-up College Study Pack became the best resource in
school and out of school.



Sam Madzingira
Director




Turn -Up College ‘A’ Level Management revision book

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