This set has ten original questions, ordered from easier to harder, covering all five lessons in objectives and stakeholders. Questions 1 to 3 practise stakeholder interests, 4 and 5 conflicts, 6 and 7 evidence, 8 and 9 time frames, and 10 pulls everything into a conclusion.
All businesses here are fictional.
Write each answer on paper in full sentences, as you would in an exam, then open the answer. Mark the ones you missed and use the routing list at the end. A quick log of the mistakes in the mistake log and retest queue helps you retry a fresh question later.
Questions
1. Dobi Kilat Sdn Bhd, a laundry in Shah Alam, plans to buy new machines using a RM30,000 bank loan. Name two stakeholders and give a specific interest for each.
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Two possible answers. The bank: it wants Dobi Kilat to earn enough cash each month to repay the RM30,000 loan with interest on schedule. The regular customers: they want their clothes washed and returned reliably, and may risk longer waiting times if the machines are installed while the shop stays open. Any two stakeholders from the case with a detail tied to this decision are acceptable.
2. A student writes: “Employees want to be happy.” Rewrite it as a specific interest for the Dobi Kilat staff, who will be trained on the new machines in the evenings.
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“The staff want to know whether evening training hours are paid and whether they will be taught to use the new machines safely.” This names the group, the decision and what they gain or risk.
3. Why is “customers want low prices” a weak answer for Roti Canai Pak Din when it raises its roti canai from RM1.50 to RM1.80? Write a stronger one.
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It is weak because it fits every business. A stronger answer: “Student customers risk paying RM0.30 more per roti canai, a rise of 20%, which may push those on a small allowance to buy fewer pieces.” Check: 1.80 − 1.50 = 0.30, and 0.30 ÷ 1.50 = 0.2.
4. A snack firm sells a pack at RM10. The variable cost is RM6, and it sells 2,000 packs. If the price rises to RM11, sales fall to 1,700 packs. Compare total contribution and say whether the price rise conflicts with the objective of selling more packs.
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Before: (10 − 6) × 2,000 = RM8,000. After: (11 − 6) × 1,700 = RM8,500. Contribution rises by RM500. Sales volume falls by 300 packs, which is 300 ÷ 2,000 = 15%. So the higher price supports profit but conflicts with the objective of selling more packs.
5. A batik shirt maker in Kota Bharu wants to switch to a certified supplier for its fabric, for ethical reasons, but also wants to protect profit. Fabric cost per shirt rises from RM20 to RM23. Other variable costs are RM15 and the price stays at RM60. The firm sells 1,000 shirts. Explain the conflict with numbers.
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Before: variable cost 20 + 15 = RM35, contribution 60 − 35 = RM25 a shirt, total 25 × 1,000 = RM25,000. After: variable cost 23 + 15 = RM38, contribution RM22, total RM22,000. The switch supports the ethical objective but lowers total contribution by RM3,000, assuming sales stay at 1,000 shirts. The conflict exists because the same action that improves sourcing raises the cost of every shirt.
6. Kopi Tiga Pintu has RM48,000 in the bank and monthly fixed payments of RM12,000. A queue forms at lunchtime every day. The owner wants to open a second branch costing RM30,000. Which objective should she prioritise? Write a short paragraph using the evidence.
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Cash covers 48,000 ÷ 12,000 = 4 months of fixed payments, and the lunchtime queue shows demand. These facts support growth. However, after paying RM30,000, only 48,000 − 30,000 = RM18,000 remains, which covers 18,000 ÷ 12,000 = 1.5 months.
Model answer: “Growth should be prioritised, because the daily queue shows demand and cash covers four months of payments. However, the branch would leave only 1.5 months of cover, so this holds if the new branch starts earning quickly. If it does not, survival should come first.”
7. In a case about a toy maker, which facts help decide between survival and growth? (a) A supplier invoice of RM5,000 is overdue. (b) The factory has a red roof. (c) A loan repayment of RM2,000 is due this month. (d) The owner’s favourite toy is a drum.
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Facts (a) and (c). Both are pressures on cash in the near term, which bear on survival. Facts (b) and (d) do not affect the objective decision.
8. Classify each effect as short term or long term for a restaurant that cuts staff training: (a) wage bill is lower this month, (b) service quality slowly drops, (c) regular customers gradually go to a rival.
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(a) Short term: the saving is felt straight away. (b) and (c) Long term: they build up over months. Add that these are possible effects, not certain ones, and link them to profit.
9. A food delivery business charges RM3 delivery on each of its 800 monthly orders. The owner removes the fee, hoping for more orders. Each extra order earns a contribution of RM8. Calculate the short-term effect if 150 extra orders arrive, and how many extra orders are needed to cover the lost fees.
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Lost fees: 3 × 800 = RM2,400. Gain from 150 extra orders: 150 × 8 = RM1,200. Net effect: 1,200 − 2,400 = −RM1,200, so profit falls by RM1,200 a month. To cover RM2,400 of lost fees, the business needs 2,400 ÷ 8 = 300 extra orders. Whether the offer is worth it in the long term depends on whether the customers stay loyal after the offer.
10. Kedai Dobi Bersih in Klang makes RM5,400 profit a month. The owner considers raising the pay of its 6 staff by RM100 a month each. Three staff left last year, and each replacement cost RM1,500 in hiring and training. Write a conditional conclusion tied to the objective of keeping staff.
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Cost of the pay rise: 6 × 100 = RM600 a month, or 600 × 12 = RM7,200 a year. Replacement cost last year: 3 × 1,500 = RM4,500. Even if the rise stops every departure, the net cost is 7,200 − 4,500 = RM2,700 a year.
Model conclusion: “The owner should raise pay only if keeping staff matters more than the RM2,700 net yearly cost, because the pay rise costs RM7,200 a year while the replacement costs avoided were RM4,500. This holds if steadier staff also improve service and bring in more customers. If not, a smaller rise or non-pay benefits may serve the objective at lower cost.”
If you got these wrong
- Questions 1 to 3, interests too general: return to identifying a stakeholder’s specific interest.
- Questions 4 and 5, conflict without a mechanism or numbers: revisit explaining a conflict between two objectives and calculating contribution.
- Questions 6 and 7, objective chosen without evidence: work through using case evidence to prioritise a business objective.
- Questions 8 and 9, timing mixed up or numbers not compared: read distinguishing short-term and long-term consequences.
- Question 10, no condition or no objective link: practise writing a conditional conclusion about a fictional firm.
The ratios with interpretation limits tool is useful when a case gives margins or percentages.
If a type of error keeps returning, online one-to-one Business tuition gives an experienced teacher the chance to look at your written answers and find the habit behind it.