QUESTION: 21

The abbreviation `SME' stands for ...

Small and medium-sized entity
Small and medium-sized enterprise
Supply management enterprise
Single-minded entrepreneur

Answer(s): C

Explanation:

This is the standard definition, widely used, and given in your textbook.

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QUESTION: 22

In which one of the following sectors would you least expect to find seasonal unemployment:

Policing
Construction
Agriculture
Tourism

Answer(s): A

Explanation:

Agriculture and tourism are normally associated with high levels of seasonal employment, and hence to some extent, unemployment.
Construction also often has an element of seasonality. For example, there is a saying in Alaska: 'there are two seasons - winter and construction', although in some less extreme climates construc-tion carries on year-round.
In most situations, we normally expect police employment levels to be relatively consistent through- out the year.

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QUESTION: 23

Fiscal policy deals with:

Government decisions and actions regarding the number of staff members employed in the government Treasury
Government decisions and actions regarding the level of interest rates and supply of money in the economy
Government decisions and actions regarding the balance between taxation revenue and public expenditure
Government decisions and actions regarding exchange rates and unemployment in the economy

Answer(s): C

Explanation:

The correct answer simply describes what fiscal policy is. This topic is often mentioned or discussed in serious radio / TV news broadcasts.

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QUESTION: 24

Which of the following is likely to reduce 'capital growth'? Select all that apply.

Increased sales
Payment of high salaries and large allowances to senior managers
Payment of dividends
Increased profit

Answer(s): B,C

Explanation:

Payment of high salaries and large allowances, may, fairly obviously reduce the amount of profit which can be retained for capital growth. If money is being distributed in this way, it isn't being re- tained.
A profitable company has a choice: to pay dividends to a greater or lesser extent; or retain some of its profits to a greater or lesser extent in the form of retained capital - capital growth. Increased sales and increased profit may result in increased capital growth, all other things being equal, depending on the firm's dividend policy.

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QUESTION: 21

Explanation:

QUESTION: 22

Explanation:

QUESTION: 23

Explanation:

QUESTION: 24

Explanation:

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