UNIDAD EDUCATIVA TOMS MORO

Individuals and Societies: Business and Management HL

Semester One Exam
2015 - 2016
Name:
Grade: Second Year of Baccalaureate
30 minutes

Date: ..
ABCD

Duration of the Test: 1 hr

General Instructions:
Verify that your cell phone is turned off and inside your backpack (Not in your pencil case).

Verify that there is nothing written on the desk. If so, report to the teacher now. Any
marks found on the desk subsequently will be assumed to be done by the student working
at that desk.

Verify that there are no materials that are not permitted during the examination on your
desk.

Remember that any instance of cheating or academic fraud will receive the corresponding
sanction.

It is prohibited to talk under any circumstances during the exam.

For each of the following sections, circle the correct answer for the multiple choice questions
and write short answers in the spaces provided.
Part I: Topic 1.1 Business Organization and Environment and Stakeholders

1)

What is a business?
a. Non tangible products that are sold to the general public.
b. Physical goods that are used by industry to aid in production of other goods and
services
c. An organization that uses resources to provide products or services to customers

2)
a.
b.
c.
d.

An organization that is protected by limited liability and is able to sell its

shares to the general public on a stock exchange would be called what?
Public Limited Company
Public Sector Company
Private Limited Company
Private Sector Company

a.
b.
c.
d.
e.

Three examples of internal stakeholders.

Customers, Suppliers, Government
Shareholders, Government, Managers
Managers, Workers, Competitors
Shareholders, Workers, Customers
Managers, Workers, Shareholders

3)

4)

Entrepreneurs typically have these types of characteristics:.

a. They are risk takers
b. They are innovators

c. They are visionaries

d. All of the above
e. None of the above

5)

Study the data below and answer the questions that follow. A, B, and C
represent three countries: Germany, Pakistan and China (although not
necessarily in that order).
Structure of employment (%)
A
B
C
Agriculture
9
1
22
Manufacturing
47
28
24
Services
44
71
54

a) Identify the countries A, B and C.

(3 points)

b) Use the data in the table to justify your answer to part a).

(7 points)

Part 2: Topic 1.2 Types of Organizations

1) Which of these is not an advantage of sole traders?
a. Unlimited liability
b. Few legal formalities
c. Being your own boss
d. Privacy

2) Which advantage(s) do Partnerships enjoy?

a. Financial privacy
b. Division of labour
c. a. and b.
d. None of the above
3) Which of the following is true about corporations:
a. They enjoy unlimited liability
b. Lack of continuity
c. They can easily raise finance
d. All of the above
4) Limited liability could best be described as:
a. A tax benefit for corporations
b. The benefit of being your own boss
c. The ability to buy products more cheaply al por mayor
d. A legal protection for the owners of businesses
Part 3:
objectives

Topic

1.3

Organizational

c. Opportunity
vision
statement
of
an
d. Threat
organization is defined as:
a.
A simple declaration of theFor the following activity, please answer
underlying
purpose
of
anin the space provided.
organizations existence
6) The Ansoff Matrix
b. The main reason for a business to Use the Ansoff matrix to explain the growth
operate
strategies in the following cases. Write the
c. A statement that outlines ananswer in the space:
organizations aspirations for the
future
a) Cadbury, the chocolate manufacturer,
launches new products under the name
d. None of the above
of Crme Eggs, Flake, Crunchie, and
Heroes in order to compete with existing
For
the
following
multiple
choice
rivals. _________________
questions, identify in each case where
you would place the given situation in
b) Nissan, a mass market car
the SWOT matrix by circling the correct
manufacturer, launches a new line of
answer:
cars under the Infinit brand to cater to
rich customers.
__________________________
2) The new president of Ecuador has
lifted the existing laws limiting
c) Tesco, the worlds second largest
companies abilities to invest in
retailer, expands to provide petrol and
Ecuador.
financial services to its customers.
_______________________
a. Strength
b. Weakness
c. Opportunity
Part 4: Topic 1.4 Stakeholder Conflict
d. Threat
1) The

3) Our company was the first in the

industry to provide a particular
product and we are known as the
first of its kind.
a. Strength
b. Weakness
c. Opportunity
d. Threat

1) In

the space provided, explain

three examples of stakeholder
conflict of interest. (6 points)

4) One of our chief competitors hasPart 5: Topic 1.5 External Environment

recently gone out of business.
a. Strength
b. Weakness
c. Opportunity
d. Threat

For the following activity, identify the

situation given as either Social,
Technological, Economical,
Environmental, Political, Legal or Ethical
by writing the word in the space
5) One of our locations in Cuencaprovided. You are tasked with
recently was closed for making identifying characteristics of the external
someone
sick
with
bad
foodenvironment for a company that is
because our cleanliness policy isconsidering opening operations in a new
country. (1 point each)
not very good.

a. Strength
b. Weakness

a. The countrys overwhelming majority

c. The poor regulation in the public

are Hindus. This means that they

are mostly vegetarian.
________________
b. The newly elected president is said
to be open to better trade relations
with neighbouring Pakistan.
____________

transport sector has led to

widespread pollution.
_________________
d. New manufacturing job opportunities
are allowing poorer families to make
more money than ever before.
_______

Part 6: Topic 1.6 Growth and Evolution

Please circle the best answer for each of the following questions.

1) Which of the following is the best definition of economies of scale?

a. The impact of globalization on the growth and evolution of business
b. The lower average costs of production as a firm operates on a larger scale
c. The impact of multi-national corporations on host countries
d. The effect of inorganic growth on more economically developed countries
2) Internal growth can best be described as:
a. Growth that occurs through alliances or mergers with other organizations
b. Growth that occurs inside of the organization example: more employees
c. Growth that occurs when a business uses its own resources and capabilities to
grow
d. None of the above

3) Which of the following is not an example of economies of scale?

a. Organic economies
b. Financial economies
c. Risk-bearing economies
d. Purchasing economies
e. All of the above are examples of economies of scale
Part 6 Continued.

4) Diseconomies of scale can best be described as:

a. An increase in overall productivity within an industry. Example: the internet has
created a huge cost savings for businesses involved in E-commerce
b. A particular region or country is highly regarded and has a trustworthy
reputation for producing a given product
c. One of the effects of good hiring policies inside of an organization
d. Higher unit costs as a firm continues to increase in size

5) The following are all benefits to an organization being large except:

a. Brand recognition
b. Lower prices
c. Diseconomies of scale
d. Customer loyalty

Part 7: Topic 1.7 Organizational Planning Tools

1) The following data refers to an activity. Please answer the following

questions in the space below.

Activit Preceding
y
Activity
A
B
A
C
A
D
B
E
C
F
D and E
G
A
H
G and F

Duratio
n
4
6
7
12
9
3
16
3

a) Draw the network for the data provided.

(6 points)
b) Use the duration times to calculate the
EST and the LFT of each activity. (6
points)
c) Identify the critical path. (2 points)
d) Explain the importance of the critical path

Part 7 continued

2) Expansion decision:
The owner of a petrol station is planning to expand the business. The two
options are to build a forecourt to sell petrol or to construct a showroom to
sell cars. The estimated building costs are: petrol forecourt $100, 000; car
showroom $150, 000. The forecast economic consequences or pay-offs
during the expected lives of these investments will depend on the level of
demand in the economy, as shown in the table below. The probability of
demand being low during the life span of these investments is 0.2 and the
probability of high demand is 0.8.
Deman Petrol
d
Forecourt
High
500,000
Low
400,000

Car
Showroom
800,000
200,000

a) 1 Show these options on a decision tree, adding the pay-offs and

probabilities.
Calculate the expected value of both investments
and recommend which option should be taken. (12 points)
b) State three other factors that you consider might influence the
business owners final decision. (3 points)

Unidad Educativa Toms Moro

Business Management II Bach All Courses
Semester 1 Exam Rubric
Part 1: Business Organization and Environment
Multiple Choice
Student can obtain 1 point per multiple choice question by circling or underlining
the best option of the options provided.
Question 5 Short answer. Student is evaluated by the correct use of the
command terms Justify and Identify. Question section a) asks students to identify
3 countries for 3 points. Part b) asks them to justify why they have chosen the
stated country as their answer. The answer to part b) should include some
previous knowledge about the countries in question.
Part 2: Types of Organizations
Multiple Choice
Student can obtain 1 point per multiple choice question by circling or underlining
the best option of the options provided.

Part 3: Organizational Objectives

Multiple Choice
Student can obtain 1 point per multiple choice question by circling or underlining
the best option of the options provided.
Question 6 asks students to fill in the blanks with the growth strategies featured in
the Ansoff matrix. They will receive 1 point for each correct answer written in the
corresponding space.
Part 4: Stakeholder Conflict
Short answer. Student will be awarded 6 points maximum for using the command
term explain correctly in the explanation of three types of stakeholder conflict. For
each correctly identified stakeholder conflict with explanation, 2 points will be
awarded.
Part 5: External Environment
Students will be awarded one point each for identifying and correctly placing the
appropriate feature of the SWOT analysis in the space provided.
Part 6: Growth and Evolution
Multiple Choice
Student can obtain 1 point per multiple choice question by circling or underlining
the best option of the options provided.
Part 7: Organizational Planning Tools
Critical path analysis. Student will be awarded the maximum of 6 points for part a)
if no errors exist in the network diagram and the graphic is properly labeled. For
minor problems with labeling or graphing, a grade of between 4 and 5 will be
awarded. For major flaws that exhibit a lack of understanding of the network
diagram in relation to the critical path analysis, a lower band of 0-1 or 2-3 will be
awarded depending on the severity of the errors.

Unidad Educativa Toms Moro

Business Management II Bach All Courses
Semester 1 Exam Rubric
Part 7: continued
In the second section, b), students are asked to calculate the ESTs and the LFTs
correctly for each activity in the network diagram. Correct placement and
calculation of all EST and LFT figures will be awarded the full 6 points. Minor
calculation errors will be marked only once and will not affect the marking for the
rest of the figure.
In section c) students will be awarded 2 points for correctly identifying the critical
path with red hash marks.
In section d), the student will be awarded 5-6 points for the correct use of Business
Management terminology, using the command term Explain correctly, and
providing support to justify their answer. A band of 3-4 points will be awarded for

quality answers that do not properly use the glossary command term. A band of 12 will be used for students who lack fundamental understanding of the terms and
concepts.
In the final question, the students will be awarded full points for correctly drawing
and labeling the decision tree, including correct calculations, and choosing the
best option. A band of 9-11 points will be applied for students with minimal or
minor graphing errors or labeling problems. A band of 6-8 will be applied for
errors in calculations that significantly affect the outcome. A band of 1-5 will be
applied for answers that dont meet the above criteria.
For the second part of the final question, the student will be awarded 1 point each
for correctly stated factor requested in the question.