7115_s14_qp_11
A paper of Business Studies, 7115
Questions:
5
Year:
2014
Paper:
1
Variant:
1
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1
Anouk is a sole trader. She designs and makes jewellery at home, using hired equipment. Anouk enjoys selling the jewellery at local markets. Last year her sales revenue increased by $500 to $3000. She plans to use $50 for a marketing budget. Anouk would like to do some primary market research when she has time. Anouk thinks she should have a business partner. What is meant by a ‘marketing budget’? Identify two methods of primary market research that Anouk could use. Method 1: Method 2: Identify and explain two possible advantages for Anouk of hiring equipment. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two disadvantages to Anouk of having a business partner. Disadvantage 1: Explanation: Disadvantage 2: Explanation: Anouk could use either leaflets or local newspaper advertising as methods of promoting her jewellery. Recommend which method you think Anouk should use. Justify your answer.
3. Marketing  →  3.2. Market research
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2
Keypeople is a recruitment agency which only operates in one small town in country Z. Its owner, Rachel, and her two employees know that good customer service is important. Rachel would like to expand her business. Keypeople offers a variety of human resource services to other businesses, such as recruiting employees and preparing employment contracts. Rachel has been asked by a local manufacturing business to recruit a senior manager. Identify two examples of tertiary sector business activity in your country, other than a recruitment agency. Example 1: Example 2: Identify two reasons why good customer service is important for Keypeople. Reason 1: Reason 2: Identify and explain two reasons why employment contracts are used by businesses. Reason 1: Explanation: Reason 2: Explanation: Identify and explain two stages in the recruitment process of the manager’s job for the manufacturing business. Stage 1: Explanation: Stage 2: Explanation: Do you think Rachel should expand Keypeople? Justify your answer.
2. People in business  →  2.3. Recruitment, selection and training of employees
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3
HPT makes frozen food products. The Finance Director wants to improve HPT’s cash flow position. Table 1 is an incomplete cash flow forecast for the next 3 months. The Finance Director thinks HPT should not use expensive packaging. He is also worried that new Government health & safety laws will not benefit the company and will only add to its costs. Table 1: Cash flow forecast ($000’s) Month 1 Month 2 Month 3 Opening balance (50 000) (30 000) (40 000) Cash inflows 200 000 180 000 200 000 Cash outflows: Wages 60 000 60 000 60 000 Packaging 20 000 20 000 20 000 Raw materials 45 000 55 000 45 000 Fixed costs 55 000 55 000 55 000 Total cash outflows X 190 000 180 000 Net cash flow 20 000 Y 20 000 Closing balance (30 000) (40 000) (20 000) Note: numbers in brackets are negative. Identify two fixed costs that HPT might have. Fixed cost 1: Fixed cost 2: Calculate the following. Month 1 total cash outflows (: Month 2 net cash flow (Y): Identify and explain two benefits to HPT of having a cash flow forecast. You should refer to Table 1 in your answer. Benefit 1: Explanation: Benefit 2: Explanation: Identity and explain two reasons why packaging might be important for HPT. Reason 1: Explanation: Reason 2: Explanation: The Finance Director is worried that new Government health & safety laws will not benefit the company and will only add to its costs. Do you agree? Justify your answer.
5. Financial information and decisions  →  5.2. Cash-flow forecasting and working capital
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4
The economy of country U is in recession. The Government has cut interest rates to attract businesses to set up in country U. JWR is a large multinational energy company. JWR may decide to open a power station in country U. The Government thinks that opening a new power station will create many external benefits. Some pressure groups do not want companies like JWR operating in their country. Identify two features of a recession. Feature 1: Feature 2: Identify two effects of a cut in interest rates on businesses like JWR. Effect 1: Effect 2: Identify and explain two actions that pressure groups could use to influence JWR’s decision. Action 1: Explanation: Action 2: Explanation: Identify and explain two external benefits as a result of opening a new power station in country U. External benefit 1: Explanation: External benefit 2: Explanation: Do you think that the Government of country U should try to attract multinational businesses? Justify your answer.
6. External influences on business activity  →  6.3. Business and the international economy
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5
Callow is a large retail business based in country X. ‘Our employees are an important stakeholder’, said the Managing Director. ‘To make sure we stay profitable we need to motivate them.’ Callow trains all of its shop employees by using off the job training. Fig. 1: Callow Organisation Structure Managing Director HR Director Finance Director West Region Manager South Region Manager North Region Manager East Region Manager Operations Director Marketing Director Shop Managers × 6 Department Managers × 4 Supervisors × 2 Sales Assistants × 8 Identify two stakeholder groups, other than employees. Stakeholder group 1: Stakeholder group 2: Identify two functions of management that each shop manager will have to perform. Function 1: Function 2: Identify and explain two features of Callow’s organisational structure. Feature 1: Explanation: Feature 2: Explanation: Identify and explain two possible methods that Callow could use to improve the motivation of its employees. Method 1: Explanation: Method 2: Explanation: Do you think it is a good idea for Callow to use off the job training for all its shop employees? Justify your answer.
2. People in business  →  2.3. Recruitment, selection and training of employees
2. People in business  →  2.1. Motivating employees
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