0450_s10_qp_13
A paper of Business Studies, 0450
Questions:
5
Year:
2010
Paper:
1
Variant:
3
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1
For Examiner’s Use Gabby is the production manager at a factory that manufactures a range of electrical products, including televisions. The company uses batch production methods in its factory. Gabby has been looking at some data produced by the Finance department. This is shown in Table 1. Table 1: Cost and output data $000’s Output per week [units] Fixed costs Variable costs Calculate the cost per unit if the output of the factory is 2000 units per week. Identify two variable costs that the business might incur. Variable cost 1: Variable cost 2: Identify and explain two features of batch production. Feature 1: Feature 2: For Examiner’s Use Gabby is thinking of subcontracting the manufacturing of some of the company’s products to another company. Identify and explain three disadvantages to Gabby’s company of subcontracting the manufacturing of its products. Disadvantage 1: Disadvantage 2: Disadvantage 3: Governments sometimes pass laws to make markets more competitive. Do you think that competition always benefits consumers? Justify your answer.
4. Operations management  →  4.1. Production of goods and services
4. Operations management  →  4.2. Costs, scale of production and break-even analysis
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2
For Examiner’s Use Company WLP is a large company providing services in country Z. Fig. 1 shows the market distribution of its sales in 2009. Table 2 shows selected financial data for the company in the same year. Distribution of sales for company WLP Selected financial data for company WLP domestic sales export sales Key: Sales turnover $750m Net profit $150m Net profit margin 20% Return on capital employed 15% Fig. 1 Table 2 What is meant by the ‘net profit margin’? Calculate the value of export sales in 2009. Identify and explain two advantages to company WLP of raising extra capital from its shareholders instead of increasing its borrowing. Advantage 1: Advantage 2: For Examiner’s Use The economy of country Z is experiencing a high rate of inflation. Identify and explain three ways in which high inflation might affect WLP. Way 1: Way 2: Way 3: WLP is now in financial difficulties. If WLP stops trading this will affect the interests of its stakeholders. Should the Government in country Z provide financial support in these circumstances? Justify your answer.
5. Financial information and decisions  →  5.1. Business finance: needs and sources
5. Financial information and decisions  →  5.5. Analysis of accounts
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3
For Examiner’s Use Halitec makes computers using flow production. It is the market leader and is well known for the quality of its products. The business is ‘product orientated’ and its management believe that this is the reason for its success. However, the management know that efficiency in its factory can be improved. What is meant by a business that is ‘product orientated’? What is meant by ‘market leader’? Identify and explain two advantages to Halitec of using flow production. Advantage 1: Advantage 2: For Examiner’s Use Identify and explain three methods that Halitec could use to improve efficiency in its factory. Method 1: Method 2: Method 3: Do you think that Halitec would benefit from spending money on market research? Justify your answer.
4. Operations management  →  4.1. Production of goods and services
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4
For Examiner’s Use Michelle is the Head Teacher of a large school. She is an autocratic leader. She believes that highly motivated teachers are very important if the school is to get good examination results. The teachers are all paid the same salary. What is meant by an ‘autocratic leader’? What is meant by ‘highly motivated’? Identify and explain one advantage and one disadvantage to the teachers of them all being paid the same salary. Advantage: Explanation: Disadvantage: Explanation: For Examiner’s Use Identify and explain three factors that Michelle should consider when recruiting new teachers to her school. Factor 1: Explanation: Factor 2: Explanation: Factor 3: Explanation: Do you think that the motivation of the teachers would increase if Michelle used a democratic leadership style? Justify your answer.
2. People in business  →  2.2. Organisation and management
2. People in business  →  2.3. Recruitment, selection and training of employees
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5
For Examiner’s Use AVC is a private limited company that makes fashion clothing. At the moment it sells all its products to customers in its own country. However, the management of AVC is thinking of exporting goods, although it knows there are problems of entering new markets. All the workers at AVC are members of a trade union. What is meant by a ‘private limited company’? Identify two advantages to AVC of exporting its clothing. Advantage 1: Advantage 2: Identify and explain two methods that the trade union could use to encourage the management of AVC to increase the wages of its workers. Method 1: Explanation: Method 2: Explanation: For Examiner’s Use Identify and explain three problems that AVC might face if it exported its clothing to other countries. Problem 1: Explanation: Problem 2: Explanation: Problem 3: Explanation: AVC has recently received a takeover bid from a multinational clothing manufacturer. Do you think that the stakeholders in AVC would benefit if the takeover went ahead? Justify your answer.
6. External influences on business activity  →  6.3. Business and the international economy
2. People in business  →  2.2. Organisation and management
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