2. People in business
A section of Business Studies, 0450
Listing 10 of 86 questions
Kapil is a successful law partnership in the centre of a large city. It offers a range of services to small and large business customers, including having meetings to give legal advice and writing contracts. Kapil’s Finance manager is worried about the high level of fixed costs. He believes this is due to Kapil’s good location. The Managing Director wants to buy a new information technology (IT) system to help improve internal communication. She thinks technology will help remove some communication barriers. What is meant by ‘internal communication’? Identify two barriers to communication. Barrier 1: Barrier 2: Identify and explain two advantages to Kapil of using information technology. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two suitable sources of finance that Kapil could use to purchase the new IT system. Source 1: Explanation: Source 2: Explanation: Do you think Kapil should move to a cheaper location? Justify your answer.
0450_m15_qp_12
THEORY
2015
Paper 1, Variant 2
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Emir is the Production manager at a large food production factory. He wants to lower average cost to help the business remain competitive. All workers are paid using time rate. Emir believes that good internal communication is important. The company has decided to stop importing raw materials as this causes a lot of problems. Emir must choose a suitable method of communication to tell the overseas suppliers of his decision. What is meant by ‘internal communication’? Identify two suitable methods of communication Emir could use to tell the overseas suppliers of his decision to stop importing raw materials. Method 1: Method 2: Identify and explain two payment methods for workers that this business could use (other than time rate). Method 1: Explanation: Method 2: Explanation: Identify and explain two possible problems of importing raw materials for this food production business. Problem 1: Explanation: Problem 2: Explanation: Explain two ways in which the Production manager could reduce average cost. Recommend which way should be used. Justify your answer. Way 1: Way 2: Recommendation:
0450_s13_qp_12
THEORY
2013
Paper 1, Variant 2
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ATC is a very large exporting company with many offices throughout the world. The top management know that effective communication is vital in such a large business. Recently the management held a meeting to consider the ways communication operates in the business. Discussion focused on the ideas of one-way communication and communication feedback. What is meant by communication feedback? Identify two business situations in which one-way communication would be suitable. Situation 1: Situation 2: Identify and explain two ways in which information technology has affected how a business communicates with its stakeholders. Way 1: Explanation: Way 2: Explanation: ATC employs 10 000 staff throughout the world. Identify and explain three benefits that ATC might gain from delegating decision-making to its staff around the world. Benefit 1: Explanation: Benefit 2: Explanation: Benefit 3: Explanation: ATC has a policy of recruiting staff for the senior jobs from within the business. It is changing its policy so that external recruitment will be used to recruit senior staff in the future. Do you think that the change will benefit ATC? Justify your answer.
0450_w10_qp_11
THEORY
2010
Paper 1, Variant 1
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LWC is a large multinational mining business with operations throughout the world. The management knows that effective communication is important in such a business. Decision making is centralised at the Head Office of the company. What is meant by ‘effective communication’? Identify two advantages of using e-mails as a means of communication within a business. Advantage 1: Advantage 2: Identify and explain two barriers to effective communication that might exist within a business. Barrier 1: Explanation: Barrier 2: Explanation: Identify and explain three consequences to a business of centralising decision making at its Head Office. Consequence 1: Explanation: Consequence 2: Explanation: Consequence 3: Explanation: Do you think that multinational businesses are of benefit to your own country’s economy? Justify your answer.
0450_w10_qp_13
THEORY
2010
Paper 1, Variant 3
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BGR is a private limited company. It operates 6 cinemas in different towns. Effective internal communication is important for BGR. The Finance Director has been analysing BGR’s accounts and an extract is shown in Table 4.1. BGR plans to open another cinema and will need to recruit 10 new employees. The new cinema will cost $8m. The Finance Director has to decide whether BGR should issue new shares or use a bank loan to finance the expansion. Table 4.1 Extract from BGR’s Income statement for year ending 2020 ($000’s) X Revenue Cost of sales Gross profit Y Expenses Profit Define ‘cost of sales’. Calculate X and Y. X: Y: Identify four stages of the recruitment process. Stage 1: Stage 2: Stage 3: Stage 4: 1 9 Explain two reasons why effective communication might be important to BGR. Reason 1: Explanation: Reason 2: Explanation: Do you think issuing new shares is a better way for a limited company to finance expansion than using a bank loan? Justify your answer. 1 9
0450_w21_qp_11
THEORY
2021
Paper 1, Variant 1
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BEF is a large business based in country X. It uses flow production to manufacture a wide range of products including toothpaste and shampoo. All BEF’s products are currently sold in country X. BEF knows that having effective methods of internal communication are important. The Operations Director is analysing production data. An extract is shown in Table 4.1. BEF is considering exporting its products to country Y. Table 4.1 Extract of BEF’s production data for one of its products Average number of production workers Total output per week Define ‘flow production’. Calculate output per worker per week in 2020. Show your working. State four factors a business should consider when selecting an appropriate method of internal communication. Factor 1: Factor 2: Factor 3: Factor 4: 1 9 Explain one reason why the following factors might be important to BEF when deciding whether to export to country Y. Import tariffs: Language: Do you think it is better for a large business to produce a wide range of products than a small range of products? Justify your answer. 1 9
0450_w21_qp_13
THEORY
2021
Paper 1, Variant 3
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Questions Discovered
86