0450_w23_qp_12
A paper of Business Studies, 0450
Questions:
4
Year:
2023
Paper:
1
Variant:
2
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1
Paolo wants to start up a business making cakes. He plans to sell all of his products to a wholesaler. Paolo knows the packaging for his products will be important. He has prepared some financial and sales data. An extract from this data is shown in Table 1.1. Paolo is considering using crowdfunding as a source of finance. He knows the business will also need working capital. Table 1.1 Extract from Paolo’s financial and sales data $6 Average price per cake $4 Average cost per cake Forecast average number of cake sales per day Define ‘working capital’. Calculate the average revenue per day. Show your working. Working: Final answer: Outline two reasons why packaging will be important for Paolo’s business. Reason 1: Reason 2: 1 11 Explain one advantage and one disadvantage to Paolo’s business of using crowdfunding as a source of finance. Advantage: Explanation: Disadvantage: Explanation: Do you think selling to a wholesaler is the best channel of distribution for a start-up business to use? Justify your answer. [Turn over 1 11
5. Financial information and decisions  →  5.1. Business finance: needs and sources
5. Financial information and decisions  →  5.2. Cash-flow forecasting and working capital
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2
TBX manufactures high-quality steel which is used to build railways. The method of production used allows TBX to benefit from economies of scale. The business holds a high level of inventory including iron ore. The Managing Director knows business activity could have an impact on the environment and is considering ways the business can contribute to sustainable development. Identify two ways business activity could have an impact on the environment. Way 1: Way 2: Identify two ways a business could contribute to sustainable development. Way 1: Way 2: Outline two possible economies of scale TBX might benefit from. Economy of scale 1: Economy of scale 2: 1 11 Explain two possible problems for TBX of holding a high level of inventory. Problem 1: Explanation: Problem 2: Explanation: Do you think quality control is the best method for a manufacturing business to use to achieve quality production? Justify your answer. [Turn over 1 11
4. Operations management  →  4.3. Achieving quality production
4. Operations management  →  4.2. Costs, scale of production and break-even analysis
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3
Country X has a mixed economy with both private and public sector organisations. These organisations are involved in different sectors of economic activity. In the last 20 years the primary sector has become less important to country X’s economy. A summary of the changes is shown in Table 3.1. The government is planning to encourage multinational companies to set up factories in country X. Table 3.1 Economic sectors in country X as a percentage of GDP Tertiary Secondary Primary Year 25% 15% 60% 50% 30% 20% Define ‘public sector’. Define ‘gross domestic product’ (GDP). Identify four types of business organisation in the private sector. Type 1: Type 2: Type 3: Type 4: 1 11 Using the data from Table 3.1, explain two possible reasons for the changing importance of the primary sector in country X. Reason 1: Explanation: Reason 2: Explanation: Do you think the benefits to a country of having a multinational company located there are always greater than the drawbacks? Justify your answer. [Turn over 1 11
1. Understanding business activity  →  1.2. Classification of businesses
1. Understanding business activity  →  1.4. Types of business organisation
6. External influences on business activity  →  6.3. Business and the international economy
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4
TFN is a travel business which sells holidays. It has 37 shops and 1000 employees. Last year TFN’s profit increased to $46 million. The Managing Director knows that good customer service has helped maintain customer loyalty. He said: ‘TFN’s managers use ideas from Herzberg’s two-factor theory to help motivate employees. All employees are provided with off-the-job training and each manager has a wide span of control.’ Identify two advantages to a business of maintaining customer loyalty. Advantage 1: Advantage 2: Identify two hygiene factors from Herzberg’s two-factor theory. Hygiene factor 1: Hygiene factor 2: Outline two reasons why profit might be important to TFN. Reason 1: Reason 2: 1 11 Explain one advantage and one disadvantage to TFN of its managers having a wide span of control. Advantage: Explanation: Disadvantage: Explanation: Do you think off-the-job training is the best method of training for a service sector business to use? Justify your answer. 1 11
2. People in business  →  2.3. Recruitment, selection and training of employees
2. People in business  →  2.1. Motivating employees
3. Marketing  →  3.1. Marketing, competition and the customer
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