Name
SHREWSBURY SCHOOL
SIXTH FORM ENTRANCE
EXAMINATION 2009
BUSINESS STUDIES
(1 hour)
Instructions to candidates:
 Answer all questions.
 Answer in the spaces provided.
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Section A – Multiple Choice
Answer all questions
(15 marks)
1. City Link, FedEx and TNT have all benefited from…
a. Product placement on the X Factor
b. Privatisations proposed by David Cameron
c. A National postal strike
d. A significant fall in the value of the dollar
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2. Why were Ticketmaster and concert promoter Live Nation recently in the
news?
a. Black market World Cup tickets were affecting their revenues [ ]
b. Robbie Williams was planning a world tour
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c. eBay has banned the sale of concert tickets on their site
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d. Their proposed merger was blocked
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3.
According to some banks, recent house price increases in the UK are due to…
a. Increased demand and higher interest rates
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b. Increased demand and a lack of supply
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c. Lower interest rates and fewer TV makeover shows
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d. Reduced demand and lower supply
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4. What is the G7?
a. The code name for the next Blackberry
b. The interest rate used by the US banks
c. The Conservatives 7 step plan for growth
d. USA, Japan, Britain, Germany, France, Italy and Canada [ ]
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5. Mintel forecasts that the sales of what will increase by 5.8% in the UK despite the
recession?
a. Chocolate
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b. Independent school education
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c. Baked beans
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d. Business class flights
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6. What is the name of the interest rate that banks use to lend to each other?
a. LIBOR
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b. BANKOR
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c. PAYE
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d. INTRAT
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7. Which government subsidy scheme was extended to cover an extra 100,000
units?
a. Identity cards for immigrants
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b. University places
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c. Car scrappage
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d. Bus passes for pensioners
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8. What grew 4.6% to £1.752bn in the first half of 2009 in the UK?
a. Tesco’s sales
b. Losses at the Royal Mail
c. Profits at Google
d. Online advertising
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9. What is the definition of a Recession?
a. Unemployment of 7.5%
b. When GDP falls to £15,000 per capita
c. Two consecutive quarters of declining GDP
d. When economic growth slows
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10. Diageo is a multinational company and it’s most well know brand is:
a. Redbull
b. Guinness
c. Trident
d. Dr Pepper
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In questions 11 to 15 match the name with the company they are associated with:
11. Sir Terry Leahy is the C.E.O of?
a. Tesco
b. Sainsbury’s
c. Morrissons
d. Asda
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12. Sir Philip Green is the C.E.O of?
a. Next
b. Topshop
c. Marks and Spencer
d. Carphone Warehouse
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13. Sheikh Mansour bin Zayed Al Nahyan is financially involved with which English
football club?
a. Liverpool
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b. Manchester City
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c. Notts County
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d. Portsmouth
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14. Steve Jobs is the co-founder of which company?
a. Dyson
b. Microsoft
c. Apple
d. Nike
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15. Mark Zukerberg founded which social networking site?
a. Twitter
b. Facebook
c. Bebo
d. MySpace
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Section B – Calculations
(15 marks)
Answer all questions
1. John had a business idea to buy, print and sell t-shirts. John decided to buy 300 tshirts with each t-shirt costing £7 to buy. John printed every t-shirt with various
designs. Printing costs came to a total of £2 per t-shirt.
John had intended to sell the t-shirts at £15 each. However he only managed to
sell 100 t-shirts at the full selling price, the next 100 were sold at £12 and the
final 100 were sold at a disappointing £7.
(5 marks)
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2. Jack Shepard is a salesman for a medical supplies company. Jack earns a basic
monthly salary of £1,500 as well as a 2% commission on the monthly sales that he
makes.
In the month of September 2009 Jack made sales for his company with a value of
£100,000.
Jack also needs to make the following deductions from his total pay (salary plus
commission) each month:
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Mortgage
£700
Income Tax (20% of total monthly pay)
Council tax
£70
Water Rates
£20
What is this Jack’s disposable income in September?
(5 marks)
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In October however Jack receives a basic salary increase of 5%. But at the same
time income tax rates are set to increase by 2%. All of the other costs remain
the same. What will Jack’s new disposable income be?
(5 marks)
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Section C
(45 marks)
Answer the following questions:
1. The UK is currently suffering in a very difficult economic environment. How
in your opinion has this affected UK businesses and what does the future
have in store for these businesses?
(25 marks)
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2. Mattel, whose brands include Barbie and Fisher Price, is one of the largest toy
manufactures in the world with global sales of $5billion. Two years ago 18
million toys were found to be unsafe because the paint used contained too much
lead. Discuss how this discovery might have affected Mattel?
(20 marks)
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