商务专业英语试卷及答案(1)

商务专业英语试卷及答案(1)
商务专业英语试卷及答案(1)

商务专业英语试卷及答案(1)

ⅠTrue or False Questions. (1 point each, 25 points total)

1. Organization can be categorized by activity, namely, based on turnover, assets, number of

employees.

2. The aim of organizations is to generate outputs which have a greater value than the labor

used up.F

3. Objectives must be quantifiable and specific.

4. Crisis management describes how the managers prepare for and react to a sudden change.

5. Sole trader is an individual who owns the business.

6. Worker co-operative set up to benefit consumers.

7. Public sector organizations are owned or directed by the Government.

8. Theory Y managers seem to believe that employees are lazy, do not want to work, have to

be controlled and monitored.

9. Private limited companies must state the extent to which they comply with the Cadbury

Codes of Best Practice in their annual report.

10. The issued share capital can not be greater than the authorized.

11. B is an associate company of A if A has between 20 and 50% of the shares of B.

12. A franchisor buys the right to use/sell a product or service to a franchisee in return for a

fixed fee and /or percentage of the turnover.

13. Merger occurs when two or more firms join together, it might be through a merger or a

take-over.

14. Synergy is the idea that when two companies join together, overall performance will be

worse than the sum of the two firms individually.

15. Microenvironment are factors beyond the immediate environment of the firm.

16. Niche market is a small part of the market which major producers are concerned with.

17. Stages of the product life cycle include development, introduction, growth, maturity and

decline.

18. Market penetration attempts to gain a greater share of a new market.

19. Focus of pull strategy is on consumers, by appealing to consumers directly.

20. The less the value of the advertising elasticity, the greater the relationship between advertising and demand.F

21.Accounts provide numerate information to help decision making.

22.Day to day finance of the organization=current assets + current liabilities

23. GDP shows how much has been earned within a country.

24. The Multiplier is based on the idea that one person’s spending is another’s income.

25. Contribution=revenue – variable costs T

ⅡAnswer the Following Questions (5 points each, 30 points total)

26. What are the main elements of business plan?

27. What is a merger? And why merge?

28. What are the reasons for becoming multinational?

29. How do small firms survive?

30. How to improve cashflow?

31. Use a diagram to illustrate Break Even Output and Margin of Safety.

Ⅲ Calculations (8 points for 32nd, 16 points for the 33rd, 24 points total)

32. Methods of investment appraisal

Please calculate Payback and ARR according to the following table.

Note:Payback: this is the length of time it takes for the firm to recoup its initial investment.

Average rate of return (ARR) : this is the average profit per year as a percentage of the initial investment.

33. Ratios Ratios analysis compares one figure with another to place it in context and assess its

relative

importance. It helps analyse data and aids decision making. Please calculate Asset Turnover , Profit Margin , Acid Test and Gearing according to the following accounts.

Ye ar £ Discount factors

Calcul ation Present value 0 (20

0) 1.000 (200)×

1.000

(200)

1 50 0.909 50×0.9

09

45.45 2

50

0.826 50×0.8

26

41.30 3 100 0.751 100×0.

751

75.10 4 160

0.683 160×0.

683

109.28

Profit and loss

for the year ending 17th June 2008

Turnover (or sales) Cost of sales Gross profit Expenses Operating profit Non operating income

Profit before interest and tax Interest payable Tax

Profit attributable to ordinary shareholders Dividends Retained profit

£400 300 100 80 20 0 20 4 1 15 10 5

Balance sheet

As at 17th June 2008

Fixed assets Current assets Stocks Debtors

Cash

Less

Current liabilities Assets employed (or net assets) Issued share capital of £1 shares Reserves

Long term liabilities Capital employed

£190 10 6 4 20 10 200

100 50 50 200

Answers:

ⅠTrue or False Questions

1.T

2.T

3. F

4.F

5.T

6.T

7.T

8.F

9.T 10. F

11.T 12.F 13.T 14.F 15.F

16.F 17.T 18.F 19.T 20.F

21.T 22.F 23.F 24.F 25. T

ⅡQuestions

26. To employers: channel of communication; can highlight human resource implications of any action; provide ideas/information.

To employees: provide power; provide advice; provide services; provide protection.

27. Factors a firm can control, but which restrict its ability to achieve its objectives. Including finance, marketing, human resources and production.

28. Reasons for becoming multinational: to make use of resources abroad; to be closer to markets; to avoid legislation in their own country which may prevent firms getting too big; to gain tax advantages or grants from overseas governments; weakens of domestic unions by spreading bases around the world.

29. Advantages: Minimizes stock holding costs; Money not tied up; Focuses effort on quality as finished goods sent to customer immediately not left in stock.

30. Types of budget:

Sales budget: sets sales estimates for each product in terms of number of units.

Production budget: sets output targets. Cash budget: cash flow forecast. 31.

Master budget: summaries estimated income, expenditure, and profit.

Explain simply. Ⅲ32. Payback = 3 years (£50 in year 1 + £50 in year 2 + £100 in year 3) = £200 initial outflow ARR = 20%

Total inflows = 50+50+100+160 = £360 Initial cost = 200

Overall return = net inflows – initial cost = £360-£200 = £160

Average return per year = overall return ÷ number of years = £160/4 = £40 per year

Average Rate of Return(%) = (average return per year ÷ initial cost) × 100 = (40÷200) × 100 = 20% 33.

Total = fixed cost +

variable costs

Total revunue Price × quantity Fix

ed costs Bre ak even

outpu p ……………………………………....

…………….…………………….……..………….. Co st Reve nue £ Outp ut l At O output fixed

costs still O ………….……

Pres ent outp ut Margin safety

(%)= (profit before interest and tax ÷ sales) × 100 = (£20÷£400) ×100 = 5%

Acid Test (number of times) = Current asset without stocks ÷ current liabilities = £10÷£10 = 1

Gearing (%)= (long term liabilities ÷capital employed) × 100 = (£50÷£200) ×100 = 25%

Stock Turnover (number of times)

= cost of sale ÷ stock = £300÷£10 = 30

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