Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
78
KA P LA N P UBL I SH IN G 
PH is aware that employees may face various types of dismissal, including: 
A Wrongful 
dismissal 
B Constructive 
dismissal 
C Redundancy 
D Unfair 
dismissal 
Required: 
Identify which of the above types of dismissal applies to each employee by writing 
ONE letter (A, B, C or D) next to each of the following: 
(i) Employee 
1 
(ii) Employee 
2 
(iii) Employee 
3 
(iv) 
Employee 4 
(0.5 marks each, total = 2 marks) 
(Total: 4 marks) 
4
 
(a)
 
BVO is a small business, which manufactures and sells a number of products, 
including product X (a relatively low-value item). BVO has recently been considering 
its pricing policy for this product. 
It has estimated that if it raises the current selling price (per unit) of product X from 
$1 to $1.50, annual demand will drop from 100,000 units to 90,000 units. 
BVO is uncertain of the implications of this for its product, or what might be causing 
the current level of price elasticity. 
Required: 
Write down which FOUR of the following options could reasonably be inferred from 
the above information by selecting FOUR of the letters from A to H. 
A 
The price elasticity of demand (PED) for product X is 5 
B 
Product X is unit elastic 
C 
Product X may be a product that customers buy out of habit 
D 
Product X may have few, if any, substitutes 
E 
The price elasticity of demand (PED) for product X is 0.28 
F 
Product X may see a sharper fall in demand if the price rise lasts for a long