0450_s24_qp_13
A paper of Business Studies, 0450
Questions:
4
Year:
2024
Paper:
1
Variant:
3
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1
WFT is a primary sector business which harvests timber from trees. The Operations Manager knows there are many legal controls over business activity affecting the environment. WFT has 30 employees and uses a lot of technology to process the timber. The business is always considering ways to increase added value. WFT often needs finance. An extract from WFT’s statement of financial position is shown in Table 1.1. Table 1.1 Extract from WFT’s statement of financial position at 30 April 2024 $ Non-current assets Current assets Current liabilities Non-current liabilities Identify one non-current asset and one non-current liability. Non-current asset: Non-current liability: Calculate WFT’s current ratio in 2024. Show your working. Working: Final answer: 1 12 Outline two ways legal controls over business activity affecting the environment might affect WFT. Way 1: Way 2: Explain two factors WFT should consider when deciding on a source of finance. Factor 1: Explanation: Factor 2: Explanation: [Turn over 1 12 Explain two ways a business might increase added value. Which do you think is the best way? Justify your answer. 1 12
5. Financial information and decisions  →  5.5. Analysis of accounts
5. Financial information and decisions  →  5.1. Business finance: needs and sources
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2
Alana opened a restaurant in the city centre 5 years ago. The restaurant provides plant-based meals using a range of vegetables. Alana uses primary market research to help identify changes in consumer spending patterns. Market research can also be used to help segment a market. The restaurant has 16 employees. Each employee is paid the legal minimum wage. In 2023 the business made a profit of $80000. Alana wants to know how an increase in interest rates might affect her business. Define ‘profit’. Identify two reasons why consumer spending patterns might change. Reason 1: Reason 2: Outline two methods of primary market research Alana might use. Method 1: Method 2: [Turn over 1 12 Explain two possible effects of an increase in interest rates on Alana’s business. Effect 1: Explanation: Effect 2: Explanation: Do you think income is the best way for a business to segment a market? Justify your answer. 1 12
3. Marketing  →  3.2. Market research
3. Marketing  →  3.1. Marketing, competition and the customer
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3
CQT is a public limited company. It manufactures paint using flow production. This method of production allows CQT to benefit from economies of scale. CQT employs 50 workers. All CQT’s raw materials are currently bought from local suppliers. However, the Operations Director knows there are many reasons for globalisation. He has been asked to explain factors a business should consider when deciding whether to relocate its factory to another country. Define ‘public limited company’. Identify two reasons for globalisation. Reason 1: Reason 2: Outline two economies of scale CQT might benefit from. Economy of scale 1: Economy of scale 2: [Turn over 1 12 Explain two limitations for CQT of using flow production. Limitation 1: Explanation: Limitation 2: Explanation: Explain two factors a business should consider when deciding whether to relocate its factory to another country. Which factor is likely to be the most important? Justify your answer. 1 12
6. External influences on business activity  →  6.3. Business and the international economy
4. Operations management  →  4.2. Costs, scale of production and break-even analysis
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4
MTO is a bank. It provides loans and other financial services to 1 million customers. MTO has 70 branches and 2800 employees. Many of its employees work part-time. The business has a tall organisational structure and its managers have a narrow span of control. Effective internal communication is important. One of MTO’s objectives is growth and the Human Resources Director has been asked to recruit a new manager. Information about applicant A is shown in Table 4.1. Table 4.1 Information about applicant A University degree in Business Qualifications Good at decision-making Skills 18 months working at another business including 3 months as a manager Experience Identify two advantages to a business of having part-time employees. Advantage 1: Advantage 2: Define ‘organisational structure’. Identify four reasons why effective internal communication is important for a business. Reason 1: Reason 2: Reason 3: Reason 4: [Turn over 1 12 Using Table 4.1, explain two reasons why MTO should select applicant A as its new manager. Reason 1: Explanation: Reason 2: Explanation: Explain two reasons why a business might want to grow. Which reason is likely to be the most important? Justify your answer. 1 12
2. People in business  →  2.3. Recruitment, selection and training of employees
2. People in business  →  2.4. Internal and external communication
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