Q1 · A government increased revenue by increasing taxes on firms 0987/12 May/June 2020
18 A government increased revenue by increasing taxes on firms. Which tax did it increase? A inheritance tax B profits tax C sales tax D value added tax
1 marks
Answer: B
This question in 0987/12 May/June 2020
Q2 · Firm X supplies bricks and decides to merge with firm Y that also supplies bricks 0987/12 Oct/Nov 2020
14 Firm X supplies bricks and decides to merge with firm Y that also supplies bricks. Which form of merger has taken place? A backward vertical B conglomerate C forward vertical D horizontal
1 marks
Answer: D
This question in 0987/12 Oct/Nov 2020
Q3 · Why are many hairdressers able to operate as small businesses? 0987/11 May/June 2021
13 Why are many hairdressers able to operate as small businesses? A high level of competition B high scope for economies of scale C long period of training required D low start-up and running costs
1 marks
Answer: D
This question in 0987/11 May/June 2021
Q4 · A Swedish furniture maker bought a Romanian firm that owned 83 000 hectares of trees 0987/12 May/June 2021
13 A Swedish furniture maker bought a Romanian firm that owned 83 000 hectares of trees. Which type of merger is this most likely to be? A diversification B horizontal C vertical backward D vertical forward
1 marks
Answer: C
This question in 0987/12 May/June 2021
Q5 · Which firm is most likely to be classified as a small firm in the tertiary sector? 0987/12 May/June 2022
11 Which firm is most likely to be classified as a small firm in the tertiary sector? A a farm B a hairdresser C a steelworks D a supermarket
1 marks
Answer: B
This question in 0987/12 May/June 2022
Q6 · Which conditions are most likely to attract small firms to enter a market? 0987/11 May/June 2023
14 Which conditions are most likely to attract small firms to enter a market? fixed costs of the market for entering the the product industry A local high B local low C national high D national low
1 marks
Answer: B
This question in 0987/11 May/June 2023
Q7 · An airline takes over an online clothing company 0987/12 Oct/Nov 2023
14 An airline takes over an online clothing company. What is an advantage of such a move by the airline? A to diversify their operations B to generate economies of scale C to improve lines of communication D to increase market share
1 marks
Answer: A
This question in 0987/12 Oct/Nov 2023
Q8 · Which combination shows the advantages of a small firm over a larger firm? 0987/12 May/June 2024
12 Which combination shows the advantages of a small firm over a larger firm? better greater lower average cost communication independence A no no yes B no yes no C yes yes no D yes yes yes
1 marks
Answer: C
This question in 0987/12 May/June 2024
Q9 · A fast-food multinational bought a food-ordering website, in order to allow the… 0987/12 Oct/Nov 2024
12 A fast-food multinational bought a food-ordering website, in order to allow the multinational’s customers to download menus and make advance payments. Which term best describes this merger? A backward vertical B conglomerate C forward vertical D horizontal
1 marks
Answer: C
This question in 0987/12 Oct/Nov 2024
Q10 · To be able to produce a car tyre, rubber is required 0987/12 Oct/Nov 2025
14 To be able to produce a car tyre, rubber is required. If a car tyre manufacturer merges with a supplier of rubber, which type of merger is this? A conglomerate B horizontal C internal D vertical
1 marks
Answer: D
This question in 0987/12 Oct/Nov 2025
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