Sarah set up a business as a sole trader running a nursery for small children too young to go to school. The business is successful and has opened a number of new nurseries. Sarah took on a business partner in 2007. Growth has continued and now the business has 10 nurseries in different towns and villages. Sarah is planning to open another nursery and is looking for a suitable location. What is meant by the term ‘sole trader’? A nursery school is classified as a tertiary sector activity. Identify two other examples of businesses that are also in the tertiary sector. Example 1: Example 2: Identify and explain two advantages to Sarah of having a business partner. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain three factors Sarah should consider when choosing a suitable location for a new nursery. Factor 1: Explanation: Factor 2: Explanation: Factor 3: Explanation: Do you think that it would be a good idea for Sarah to continue to expand her business? Justify your answer.

7115_s11_qp_11

THEORY

2011

Paper 1, Variant 1

View

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 2 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. [ 1 2

7115_w23_qp_12

THEORY

2023

Paper 1, Variant 2

View

TRB is a small business in the secondary sector. TRB assembles computers. All components, except for the battery and glass for the screen, are imported from other countries. 40% of its products are exported. Many of its competitors are relocating to low cost countries. TRB’s Operations Director thinks the opportunities of globalisation may be greater than the threats for TRB. She is looking at ways to improve efficiency in the factory. One option is to introduce lean production methods. TRB is in the secondary sector. Identify the other two classifications of business sector activity. Classification 1: Classification 2: Identify two ways to measure the size of a business. Way 1: Way 2: Identify and explain two methods of lean production that TRB might use. Method 1: Explanation: Method 2: Explanation: 1 1 Identify and explain two possible benefits to TRB of improving efficiency. Benefit 1: Explanation: Benefit 2: Explanation: [ 1 1 Do you think there are more opportunities than threats from globalisation for TRB? Justify your answer. 1 1

7115_w18_qp_12

THEORY

2018

Paper 1, Variant 2

View

Country W has a mixed economy. The public sector has grown in recent years. The Government has also introduced many new laws regulating business behaviour and protecting employees and consumers. What is meant by the term ‘mixed economy’? Identify two objectives often set by businesses in the public sector. Objective 1: Objective 2: Identify and explain two reasons why the size of the public sector might increase over time. Reason 1: Explanation: Reason 2: Explanation: Identify and explain three ways in which consumers might benefit from consumer protection laws. Way 1: Explanation: Way 2: Explanation: Way 3: Explanation: The management of many businesses in the private sector think that employment legislation is making them less competitive. Do you agree? Justify your answer.

7115_w11_qp_11

THEORY

2011

Paper 1, Variant 1

View

Country A has a mix of private sector and public sector enterprises. Figures 1– 3 give some data about the two sectors. Fig. 1: Average hourly Fig. 2: Average hours Fig. 3: Number of wage worked per week employees in public sector Public Sector Public Sector Private Sector Private Sector millions hours $ Identify two examples of public sector enterprises. Example 1: Example 2: Identify two aims that public sector enterprises often have. Aim 1: Aim 2: Identify and explain two reasons why profits are important to private sector businesses. Reason 1: Explanation: Reason 2: Explanation: Consider each of the Figures 1–3. Identify and explain three changes that are shown by the data in Figures 1– 3. Change in Figure 1: Explanation: Change in Figure 2: Explanation: Change in Figure 3: Explanation: Do you think that a large decrease in the number of employees in the public sector in country A will benefit all workers? Justify your answer.

7115_w13_qp_12

THEORY

2013

Paper 1, Variant 2

View

Nicky wants to be a successful entrepreneur. She plans to start up a travel business specialising in walking holidays. Nicky will be operating in a niche market. She is preparing a business plan to help with her decision-making. Nicky has been told government support is available for business start-ups. She knows building customer relationships will be important. Identify two reasons why a government might support business start-ups. Reason 1: Reason 2: Identify two ways a business can build customer relationships. Way 1: Way 2: Outline one benefit and one limitation to Nicky’s business of operating in a niche market. Benefit: Limitation: 1 1 Explain one way each of the following sections in the business plan might be helpful to Nicky. Business objectives: Explanation: Data about the market: Explanation: Explain two characteristics of a successful entrepreneur. Which characteristic is likely to be the most important? Justify your answer. [ 1 1

7115_s24_qp_12

THEORY

2024

Paper 1, Variant 2

View

Desmond wants to be a successful entrepreneur. He has decided to leave his office job to start up a gardening business cutting grass and planting flowers. It will be an unincorporated business. Desmond is aware that a new business is at greater risk of failure than an established business. He has identified his business objectives for the first year. Desmond has calculated he will need $750 for his start-up capital. Define ‘unincorporated business’. Identify two objectives a new business might have. Objective 1: Objective 2: Identify four characteristics of a successful entrepreneur. Characteristic 1: Characteristic 2: Characteristic 3: Characteristic 4: 1 1 Explain two reasons (other than lack of finance) why Desmond’s new business might be at greater risk of failure than an established business. Reason 1: Explanation: Reason 2: Explanation: Do you think owner’s savings are the most suitable source of finance for a start-up business? Justify your answer. [ 1 1

7115_w23_qp_11

THEORY

2023

Paper 1, Variant 1

View

Kate is an entrepreneur. Two years ago she left her job as a fashion designer at a multinational company. She started up BBB, a women’s sportswear clothing business. BBB targets a market segment of high income consumers. BBB’s products are sold in 3 retail shops and also through its website. Kate said: ‘I saw a gap in the market and took the risk. Obtaining the finance I needed from the bank was not easy. I enjoy making decisions such as using leaflets to promote the clothes.’ BBB’s revenue target for next year is $500000. What is meant by ‘entrepreneur’? Identify two reasons why obtaining finance may not be easy for a new business. Reason 1: Reason 2: Identify and explain two possible reasons why Kate decided to start up her own business. Reason 1: Explanation: Reason 2: Explanation: 1 1 Identify and explain two reasons why segmenting the market might help BBB. Reason 1: Explanation: Reason 2: Explanation: Do you think that using leaflets is the best way for Kate to promote her products? Justify your answer. [ 1 1

7115_s19_qp_11

THEORY

2019

Paper 1, Variant 1

View

Kala always wanted to be an entrepreneur. She used to work for a business which downsized its workforce 5 years ago. She then decided to start up CHL. She produced a business plan which helped her obtain finance. Kala now designs customised sports clothes for women. Kala sells these products directly to customers using e-commerce. She has a loyal customer base of 25-40 year olds. However, Kala is worried about increased competition in this niche market. One idea she has is to target different market segments. Define ‘business plan’. Identify two reasons why a business might downsize its workforce. Reason 1: Reason 2: Outline two reasons why Kala’s business might need finance. Reason 1: Reason 2: 1 3 Explain one advantage and one disadvantage to Kala of using e-commerce to sell her products. Advantage: Explanation: Disadvantage: Explanation: Do you think selling to different market segments is the best way for a small business to respond to increased competition? Justify your answer. [ 1 3

7115_s20_qp_12

THEORY

2020

Paper 1, Variant 2

View

Tom wants to leave his job to become an entrepreneur. He and his sister plan to start a window cleaning business. Tom has been told that new businesses are at a greater risk of failure than established businesses. Tom has to decide whether a partnership is a suitable form of business organisation for the new business. He has calculated the business will need $700 as start-up capital. Tom knows that every decision he makes will have an opportunity cost. Define ‘entrepreneur’. Define ‘opportunity cost’. Identify four reasons why a new business might be at greater risk of failure than an established business. Reason 1: Reason 2: Reason 3: Reason 4: 1 1 Explain two suitable sources of start-up capital Tom’s business might use. Source 1: Explanation: Source 2: Explanation: Do you think a partnership is the best form of business organisation for a new business? Justify your answer. 1 1

7115_s22_qp_12

THEORY

2022

Paper 1, Variant 2

View

---