A-AS Level (CIE) Business Studies Paper-1: Specimen Questions with Answers 15 - 16 of 50

Question 15

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What is the importance of delegation for management?

Explanation

Delegation is the process by which manager assigns as many operating tasks as possible to subordinates virtue of his authority and concentrates his efforts on managerial tasks. Manager grants certain duties on others in the form of work and authority (The delegation of authority is the delivery by one individual to another right to act, to make decisions, and to perform other tasks in order to fulfill job responsibilities) .

Characteristics of Delegation

  • Two-sided relationship between
  • Act of trust and confidence.
  • Freedom to think decide and manage on his own.
  • Creates dependence relationship between senior and subordinate.
  • It is a challenging task.
  • It is a forward-thinking principle.
  • Delegation is not abandonment

Question 16

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Short Answer▾

How does business improve its liquidity?

Explanation

Strategies That Business Use to Improve Its Liquidity Are

  • Selling off fixed assets for cash could be leased back if required.
  • Sell off inventories for cash.
  • Increase the loans for injecting cash into the business thus, to increase working capital.
  • A business can raise more share capital.
  • It can postpone planned investment
  • Faster conversion cycle of debtors/receivables

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