IB Business Past Paper 2020-2021 PDF

 elow are the elements in the business environment, except... B A. Economic and legal environment B. Technological environment C. Competitive environment D. People environment ANSWER: D Business must meet global challenges, including war and terrorism. War and terrorism may impact the prosperity o...

 elow are the elements in the business environment, except... B A. Economic and legal environment B. Technological environment C. Competitive environment D. People environment ANSWER: D Business must meet global challenges, including war and terrorism. War and terrorism may impact the prosperity of people everywhere, including businesses. How do we minimize international tensions? A. Foster global economic growth among both profit-making and nonprofit organisations, especially less developed countries B. Increase military budget C. Declare trade wars on countries that are considered competitors in the same business sector D. Limit the issuance of work permits for foreign workers ANSWER: A Which one is not considered as factors of production? A. Natural resources B. Workers C. Willingness D. Capital ANSWER: C Below are the social environment aspects that a business needs to pay attention for, except? A. Managing diversity B. The increase in the number of older citizens C. The increase in the number of single-parent families D. War and terrorism ANSWER: D ____ means producing items using the least amount of resources. A. Efficiency B. Productivity C. Effectiveness D. Empowerment ANSWER: A..... is the number of outputs that are generated from the input issued. A. Efficiency B. Use of Technology C. Productivity D. Income ANSWER: C Increasing production efficiency by using the latest machines is an example of a business environmental factor, namely? A. Economic and legal environment B. The technological environment C. Social Environment D. Global Business Environment ANSWER: B Taking someone's personal information such as a credit card number for illegal acts is referred to as? A. False Empowerment B. Database theft C. Identity theft D. Credit card theft ANSWER: C Providing training and greater responsibility to workers is a form of? A. Empowerment B. Diversity C. Responsibilities D. Productivity ANSWER: A. Those who are affected by the ups and downs of a business activity are referred to as? A. Entrepreneur B. Business owner C. Stakeholders D. Business Environment ANSWER: C Capitalism is an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit. Countries that implement capitalism system will have several advantages, except A. Society becomes more creative and innovative B. Encouraging open competition between companies C. Have easier management, control, and supervision processes D. Willing to take the bigger risks than they might in general ANSWER: C In general, under free-market capitalism, people have the following basic rights, except... A. The right to freedom of choice B. The right to own a business and keep all that business's profit C. The right to own a private property D. The right to make legal regulations ANSWER: D An economic system which believes that some, basic businesses must be owned by the government so that profits can be more evenly distributed among the people is a definition of the economic system.... One example of a country implementing this economic system is.... A. Capitalism, German B. Socialism, Denmark C. Communism, Vietnam D. Communism, Laos ANSWER: B Specifically, a major reason for the creation of a mixed economic system in the world, is because A. The economic system of communism can cause shortages, which have an impact on the basic needs of society that are not met B. The free market economic system has the potential to cause large income inequality in society C. It is considered that the free market and command economic systems have not resulted in optimal economic conditions D. All the answers are correct ANSWER: C One of the advantages of communism economic system is É A. Less likely to experience an economic recession B. Motivating business in the country C. Willing to take bigger risks than they generally might D. society becomes more creative and innovative ANSWER: A An economic system in which some allocations of resources are made by the market and some by the government is also called..., one example of a country that adopts this economic system is... A. Mixed economy, German B. Socialism, Sweden C. Kapitalism, Canada D. Mixed economy, Laos ANSWER:A The following are characteristics of the capitalism economic system, except... A. Very little incentive to work hard or to produce quality goods or services. B. Freedom of speech, religion, choice of work, to make choices in elections C. There is almost no shortage or oversupply in long time D. Various kinds of goods and services available ANSWER: A The following are the advantages of a socialist economic system, except... A. Free education, health care and child care. B. Workers typically receive longer vacations, work less per week, and receive more employee benefits. C. Emphasizes social and economic equality D. Emphasize the existence of the motive for freedom and profit economic growth. ANSWER: D Socialism seeks to create more equality than capitalism, on the other hand it also takes away some of the incentives of business people. For example, when the socialist Francois Hollande became president of France, the highest tax rate reached 75 percent. As a consequence of this policy, France lost most of its knowledgeable, educated and skilled human resources because they migrated to other countries. Based on that example, socialism can have negative consequences called... A. Brain Drain B. Brain Gain C. Brain Circulation D. Brain Waste ANSWER: A The command economy is illustrated by the major government role in deciding what goods and services to produce, who will get them, and how the economy will grow. The economic systems that are included into this category are... A. Socialism and Capitalism B. Socialism and Communism C. Capitalism and Communism D. Capitalism and Mixed Economy ANSWER: B A country has an..... if it can produce a specific product more than all other countries. A. Absolute Advantage B. Comparative Advantage C. Competitive Advantage D. Local-specific Advantage ANSWER: A The comparative advantage is the theory that suggested by.... in 19th century A. Adam Smith B. David Ricardo C. Karl Marx D. Ray Vernon ANSWER: B What is the definition of dumping? A. Buying products from another country at lower prices B. Selling products in a foreign country at lower prices than those charged in the producing country C. Buying products in a foreing country at lower prices than those charged in producing country D. Selling products in a foreign country at higher prices than those charged in producing country ANSWER: B Why is offshore outsourcing a major concern for the future? A. It may cause an increase in number of lost jobs in the home country B. It may produce goods of superior quality C. It may cause a decrease in number of lost jobs in the home country D. It may replace human labor with robots and AI ANSWER: A Unfavorable balance of payment exists when? A. More money is flowing out of a country than coming in B. More money is flowing in of a country that out C. Money flowing and flowing out of a country is equal D. There is no correct answers ANSWER: A How do multinational corporations differ from other companies that participate in global business? A. Multinational companies are ignorant of cultural implications in making business decisions. B. Multinational companies pay their employees in their home countryÕs currency. C. Multinational companies offer the same price for their products in every country they operate in. D. Multinational companies have manufacturing facilities or other physical presence in global markets. ANSWER: D A global strategy in which a firm allows a foreign company to produce its product in exchange for a fee is the definition of? A. Franchising B. Contract Manufacturing C. Licensing D. Exporting ANSWER: C Which of this following options is an Agreement that created a free-trade area among the United States, Canada, and Mexico? A. GATT B. COMESA C. NAFTA D. GATS ANSWER: C Which of these following statements is the definition of Joint Venture? A. a partnership in which two or more companies join to undertake a major project B. a foreign company's production of private-label good to which a domestic company then attaches its brand name or trademark C. a long-term partnership between to or more companies established to help each company build competitive market advantages D. a global strategy in which a firm allows a foreign company to produce its product in exchange for a fee ANSWER: A Potential stumbling blocks to global trade include these forces below, except: A. legal and regulatory forces B. physical and environmental forces C. sociocultural forces D. physiological forces ANSWER: D Which of the following statements is INCORRECT in explaining the difference between legality and ethics? A. Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society. B. Ethics reflects people’s proper relationships with one another. C. Legality reflects people’s improper relationships with one another. D. Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence. ANSWER: C We can put our business decisions through an ethics check by asking three questions, except: A. Is it legal? B. Does it bring good publicity? C. Is it balanced? D. How will it make me feel? ANSWER: B Ethical standards that emphasize on preventing unlawful behavior by increasing control and penalizing wrongdoers belongs to which type of ethical code? A. Compliance-based ethical codes B. Integrity-based ethical codes C. Responsibility-based ethical codes D. Management-based ethical codes ANSWER: A Four basic rights of consumers make sure business do their responsibility to their consumers. They are A. right to safety, right to be informed, right for installments, right to consume B. right to safety, right to choose, right to be heard, right to consume C. right to safety, right to be informed, right to choose, right to be heard D. right to safety, right to choose, right for installments, right to be heard ANSWER: C How do businesses demonstrate corporate responsibility toward stakeholders? A. By satisfying employees with goods and services of real value B. By borrowing money from investors C. By seeing that hard work and talent are unfairly rewarded D. By creating new wealth for society and promoting social justice ANSWER: D What indicator is used to measure an organization’s progress toward social responsibility? A. corporate social audit B. corporate cultural audit C. corporate legal audit D. corporate tax audit ANSWER: A An unethical activity in which employees use private company information to further their own fortunes or those of their family and friends are called A. Insider trading B. Whistleblowing C. Corporate policy D. Industry Fraud ANSWER: A Five types of groups serve as watchdogs to monitor how well companies enforce their ethical and social responsibility. They are A. Socially conscious investors, socially conscious research organizations, environmentalists, union officials, and customers B. Socially conscious investors, socially conscious research organizations, environmentalists, local police, and Ministry of Industry officials C. Stock brokers, management consultancy firms, environmentalists, union officials, and customers D. Stock brokers, management consultancy firms, environmentalists, union officials, and customers ANSWER: A The social performance of a company has several dimensions, except: A. Corporate philanthropy B. Corporate policy C. Corporate responsibility D. Corporate insurance ANSWER: D Insiders who report illegal or unethical behavior are called A. Prosecutors B. Auditors C. Investigators D. Whistleblowers ANSWER: D After graduating with an Engineering degree, Eve established Eve Electronic Services and has been the owner and founder for over 3 years. What is the disadvantage of Eve’s form of business ownership? A. Eve is able to keep all profit and benefits earned B. Eve Electronic Services have a limited lifespan C. Eve can be her own boss D. Eve does not have to pay special taxes ANSWER: B Jack and Jill opened a bakery, both contributed to the business equally and agreed to share their profits depending on the number of pastries they sold, if Jack made a mistake, Jill does not have to worry about losing her assets due to his mistake. What kind of partnership is done between Jack and Jill? A. General partnership B. Limited partnership C. Master limited partnership D. Limited liability partnership ANSWER: D Apple Inc. is an example of a corporation. What is the advantage of establishing a corporation? A. Ability to raise more money for investment B. Difficulty of termination C. Two tax returns D. High initial cost ANSWER: A In 1999, ExxonMobil was established by the merger of Exxon and Mobil, two major oil companies. What type of merger is done by ExxonMobil? A. Vertical merger B. Conglomerate merger C. Horizontal merger D. Acquisition ANSWER: C 93% of McDonald's restaurants are franchised, with the remaining 7% run by McDonald’s themself. What is one of the advantages of franchising? A. Coattail effect B. internationally recognized name C. Shared profit D. Large start-up cost ANSWER: B Based on UU no 40 Tahun 2007, Which of these following statements should NOT be included in articles of association? A. The enormity of the authorized capital (modal dasar) B. Company’s period of establishment C. Amount of paid-up capital D. Procedures for the appointment, replacement, dismissal of the organization members. ANSWER: D According to UU no 40 Tahun 2007, some of the authorized capital of the company must be issued and fully paid. What is the minimum requirement of authorized capital that must be fully paid up? A. 10% of authorized capital B. 20% of authorized capital C. 25% of authorized capital D. 5% of authorized capital ANSWER: C According to UU no 25 Tahun 1992, what is the definition of Secondary Cooperative? A. A cooperative established by and with its members as a cooperative B. A cooperative that is founded by and has individual members C. A cooperative that produces goods that have been previously processed by the Primary cooperative D. A cooperative that is ready to become a Persero ANSWER: A Based on UU no 25 Tahun 1992, which is NOT the function and role of the cooperative? A. participate actively in efforts to enchance the quality of human life and society B. Build and develop the potential and economic capacity of members in particular and society in general to improve their economic and social welfare C. strenghten the people's economy as the basis for the strength and resilience of the national economy with cooperatives as the pillar D. developing human resources and increasing the production of a particular good. ANSWER: D Based on UU no 25 Tahun 1995, which of these following that is NOT the right of every member of the coperative? A. elect and/or be elected as a member of the management or supervisory B. requesting a member meeting according to the provisions in the articels of association C. express opinions or suggestions outside the member's meeting, whether requested or not D. participate in business activities organized by the cooperative ANSWER: D There are a few reasons why people are willing to take the entrepreneurial risk, except: A. Challenge B. Profit C. Opportunity D. Dependence ANSWER: D Great business ideas are not enough, but there must be a desire to realize, actualize, and build the dream into reality. This explains the.... attribute: A. Action-oriented B. Highly energetic C. Self-nurtured D. Tolerant of uncertainty ANSWER: A Entrepreneurs who are willing to accept the risk of starting and managing the type of business that remains small, which lets them do the kind of work they want to do, and offers them a balanced lifestyle is called: A. Multipreneurs B. Micropreneurs C. Intrapreneurs D. Macropreneurs ANSWER: B Which of the following is NOT the challenges of working at home? A. Getting new customers B. Managing cost C. Keeping work and family tasks separate D. Managing risk ANSWER: B Creative people who work as entrepreneurs within corporations is called: A. Multipreneurs B. Micropreneurs C. Intrapreneurs D. Macropreneurs ANSWER: C Which of the following is the correct statement of why small businesses fail to compete? A. Allow setbacks and unexpected expenses B. Keep complete and accurate records C. Underestimating how much time it will take to build a market D. Borrowing money with plan on how and when to pay it back ANSWER: C Which of the following is NOT the factors that could increase the chance of success for small business? A. The owner pays attention to new competitors B. The business is in a growth industry C. A large business sells a franchise operation to local buyers D. The product is easily made by mass-production techniques ANSWER: D Patrick wants to start a business with his new invention, however he needs some fund. Therefore, he opens a Kickstarter account, which means Patrick will gain fundings from: A. Angels and venture capitalist B. Family and business associates C. Banks and finance institutions D. Small Business Association (SBA) ANSWER: A Which of the following is the incorrect statement regarding advantages of small business in international trade? A. Small companies can provide a wide variety of suppliers B. Small companies can give customers personal service and undivided attention C. Small business can gain fund easier D. Small companies can usually begin shipping much faster ANSWER: C Mrs. Nurhayati Subakat used to work in a cosmetic company before becoming the founder of cosmetic brands such as Wardah, Make Over, and Emina. This means, Mrs. Nurhayati learn to be an entrepreneur from: A. Learn from others B. Get some experience C. Looking for help D. Take over a successful firm ANSWER: B There are a few activities associated with the Planning, except: A. Developing strategies to reach those goals B. Setting precise standards C. Rewarding outstanding performance D. Determining resources needed ANSWER: C The process of developing detailed, short-term statements about what is to be done, who is to do it, and how to do it, is called: A. Strategic Planning B. Tactical Planning C. Contingency Planning D. Operational Planning ANSWER: B The process of preparing alternative courses of action the firm can use if its primary plans don’t work out is called: A. Strategic Planning B. Tactical Planning C. Operational Planning D. Contingency Planning ANSWER: D What is the 4th step of six Ds of Decision Making? A. Decide which alternative is best B. Develop alternatives C. Describe and collect needed information D. Do what is indicated (begin implementation) ANSWER: A What level of management is Plant Managers? A. Top Management B. Middle Management C. Supervisory (First-line) Management D. Non-supervisory ANSWER: B The ability to perform tasks in a specific discipline (such as selling a product or developing software) or department (such as marketing or information systems) is called: A. Technical Skills B. Human Relations Skills C. Conceptual Skills D. Managerial Skills ANSWER: A A management function that includes hiring, motivating, and retaining the best people available to accomplish the company’s objectives is called: A. Leading B. Planning C. Controlling D. Staffing ANSWER: D There are a few styles of leadership. Free-rein leadership is: A. Leadership style that involves making managerial decisions without consulting others B. Leadership style that consists of managers and employees working together to make decisions C. Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives D. Leadership style that consists of managers and employees working on their own ANSWER: C The following are what leaders must do, except: A. Communicate a vision and rally others around that vision B. Promote corporate ethics C. Decline change D. Establish corporate values ANSWER: C What is the first thing that needs to be done in Controlling function? A. Taking corrective action when needed B. Establishing clear performance standards C. Communicating results and deviations to the appropriate employees D. Comparing results against plans and standards ANSWER: B The situation in which the average cost of goods goes down as production levels increase is called A. Economies of scale B. Diseconomies of scale C. Marginal cost of production D. Maximum capacity ANSWER: A Which option is NOT one of Fayol's Principles of Organization? A. Subordination of individual interests to the general interest B. Hierarchy of authority C. Degree of Centralization D. Staffing and promotion based on qualifications ANSWER: D Companies like United Parcel Service (UPS) maintain strict written rules and decision guidelines for their service so that their employees don’t have to pause to make decisions. This principle thrives on whose theory? A. Adam Smith B. Karl Marx C. Max Weber D. Henri Fayol ANSWER: C A visual device that shows relationships among people and divides the organization’s work to shows who reports to whom is called A. Organization structure B. Chain of Command C. Bureaucracy D. Organization Chart ANSWER: D Global companies like Samsung and Apple concentrate their decision making process at the top level of management. This decision making process authority is called A. Decentralization B. Centralization C. Localization D. Glocalization ANSWER: B One of the disadvantage of departmentalization is A. The company can achieve economies of scale easier B. Department may not communicate well C. Employees can coordinate work within the function D. Top management can easily direct and control various departments’ activities ANSWER: B Type of organization in which specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff structure is called A. Matrix organization B. Line and staff organization C. Line organization D. Cross-functional self-managed teams ANSWER: A Comparing an organization’s practices, processes, and products against the world’s best is called A. Networking B. Benchmarking C. Core competencies D. Restructuring ANSWER: B Widely shared values within an organization that foster unity and cooperation to achieve common goals is the definition of A. Organizational principles B. Organizational rules and guidelines C. Organizational culture D. Organizational structure ANSWER: C David has to directly send documents to the neighbouring company, but he is unable to because he has an urgent meeting to attend. So, david asks one of the office boys to send the documents for him. To show his gratitude, david gives the office boy some pocket money and a lunch, even though it is not compulsory and was not stated in the company's rules and guidelines. David action can be categorized as A. Informal Organization B. Organizational principles C. Organizational norm D. Formal Organization ANSWER: A