at the end of each question or part question.
The businesses described in the case study are entirely fictitious.
You are advised to spend no longer than 2 hours on Section A.
You are reminded of the need for good English and clear presentation in your answers.
Calculators may be used.
Section A [70 Marks]
Answer all questions.
1 What is de-industrialisation? 
2 a) List three stakeholders that might wish to compare the size of one business to another. 
b) State and explain any two factors that are taken into consideration when measuring the size of a business. 
3 a) What is the importance of small business operations in your country? 
b) Explain the difficulties faced by small firms in their operations. 
4 Murape Pvt Ltd sells computers to small businesses around the country. It is suffering cash flow problems at the moment. How might this firm improve on its cash flow? 
5 a) Distinguish between marketing and selling. 
b) Explain any two factors that influence demand for a product. 
6 Explain two ways in which a football club might reduce its break-even level. 
7 Mr B. Banda is an old and experienced tailor who uses job production in making suits for his customers. Outline the advantages and disadvantages he is likely to encounter in his business. 
8 a) State two sources of internal and two sources of external finance for a firm. 
b) Outline the factors considered by a firm when sourcing finance. 
9 To what extent are published accounts of a firm useful to a potential investor? 
10 a) What is a training programme? 
b) State and explain any two reasons for high labour turnover in an organisation. 
11 a) What is an autocratic leadership style? 
b) Explain the circumstances in which an autocratic management style may be appropriate. 
12 A firm is faced with a choice of buying a small machine or a large one. The return or pay off will vary depending on the choice of machine and state of demand. The relevant data is shown below:
|State of demand||Probability||Pay off from the small machine||Pay Off from the large machine
|High||0.2||80 000||160 000
|Medium||0.6||72 000||48 000
|Low||0.2||32 000||-20 000
a) Present the above information on a decision tree diagram. 
b) Which machine should be chosen and why? 
Section B [30 Marks]
Read the following case study and answer all the questions that follow.
National Railways of Zimbabwe (NRZ) strike costs economy millions of dollars.
Zimbabwe’s imports and exports by rail to the sub-region came to a standstill yesterday as the strike by the railway employees entered its second day, costing the country’s economy millions of dollars-an official said. There appeared no end in sight to the strike after the company manager ordered all striking workers not to go to their work stations if they were not ready to resume work.
He told the strikers that the government had said it was consulting treasury to give the parastatal $200 million the workers are demanding in backdated allowances.
NRZ sources said no goods or passenger trains were running yesterday as workers rejected an appeal by management to return to work while negotiations were in progress. They said the strike had adversely affected regional trade with all rail traffic between the neighbouring countries affected.
“The NRZ handles about 1 400 tonnes of transit traffic a day from neighbouring countries. These include maize from South Africa to Zambia and the Democratic Republic of Congo and copper from Zambia to Durban in South Africa” a reliable source said.
“Internally Zimbabwe uses the railways to move tobacco, maize and oil.” he added. The general manager admitted that the company is losing millions of dollars a day because of the strike. Sources said if the strike continued until next week shortages in some commodities would be felt. Industrialists said they were still counting their losses. The president of the Confederation of Zimbabwe Industries said companies were making frantic efforts to find alternative transport, which would be expensive, to move their goods. “The strike is very disruptive. Companies are already feeling under pressure and this thing does not help the economy at all.” he said in a telephone interview from the capital city. “Road transport is more expensive because of handling costs.” We urge everybody to exercise maximum restraint and hope that this thing is solved very soon.
Source: Chronicle 16 March 1999
13 Explain the problems that might be faced by any three stakeholders of this business as a result of the strike. 
14 Discuss the importance of rail transport within this region. 
15 If you were in the management team, what motivational factors could you put into practice to avoid the strike by railway workers? 
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