9609_s23_qp_22
A paper of Business Studies, 9609
Questions:
2
Year:
2023
Paper:
2
Variant:
2
Login to start this paper & get access to powerful tools
1
Office Furniture Designs (OFD) Markus is an entrepreneur and is planning to set up a private limited company called OFD in four weeks’ time. OFD will be an online retailer selling office furniture directly to business customers. Products will be sent directly to customers from OFD’s warehouse. OFD’s product range will include office chairs, desks and filing cabinets. Markus will have limited start-up funds. OFD will operate in a competitive market and Markus is keen to offer high-quality customer service. He also will have to think carefully about opportunity cost. As part of his business planning, Markus has prepared a cash flow forecast (see Table 1.1). Table 1.1 OFD’s cash flow forecast June – August 2023 ($ 000) June July August Cash inflow Cash sales Credit sales Total inflow Cash outflow Supplies Utilities Rent Salaries Operating expenses Total outflow Net cash flow (50) (41) Opening balance (40) Closing balance (40) (81) Markus plans to offer all customers one month trade credit. However, as OFD is a new business, suppliers may insist on payment on delivery. Markus is currently researching sources of finance to improve OFD’s cash flow. OFD will need five employees who will work in the warehouse and three customer service assistants. Markus plans to offer two weeks of induction training to all employees. Identify one quality an entrepreneur needs for success. Explain the term opportunity cost. Refer to Table 1.1. Calculate the forecast closing balance for August 2023. Explain one factor that will influence Markus’ choice of a source of finance. Analyse two benefits to OFD of offering induction training to all employees. Evaluate whether Markus needs accurate cost information before setting up OFD.
5. Finance and accounting (AS Level)  →  5.3. Forecasting and managing cash flows
Open
2
MX Bikes (MXB) MXB is a successful public limited company with many stakeholders. It has been trading for 15 years. It makes a range of bicycles and is currently the market leader for mountain bikes in country J. MXB’s high-quality mountain bikes are sold at a high price to high-income leisure users. They are sold in a limited number of specialist bicycle shops. shows the annual revenue of mountain bike manufacturers in country J for 2022. 0 MXB JW AB PE LK Manufacturer JT SB Other Sales revenue ($000) Annual revenue of mountain bike manufacturers in country J for 2022 To grow the business and improve the sustainability of operations, MXB expanded its product portfolio by launching a range of electric scooters. This is a new and expanding market in country J, targeting the urban youth market. MXB’s business objectives are reviewed regularly by Rani, the Managing Director. Rani is concerned that MXB’s sales of mountain bikes have declined by 12% over the past year. Demand for mountain bikes in country J has remained static. She has asked the Marketing Director to recommend extension strategies to increase MXB’s market share. Identify one stakeholder of a business. Explain the term sustainability. Refer to . Calculate MXB’s market share of the mountain bike market in country J. Explain one reason why MXB’s objectives may change. Analyse one advantage and one disadvantage to MXB of growing by launching a new product range of electric scooters. Evaluate how MXB can change its marketing mix to extend the product life cycle of its range of mountain bikes.
3. Marketing (AS Level)  →  3.1. The nature of marketing
3. Marketing (AS Level)  →  3.3. The marketing mix
Open