2.4. Internal and external communication
A subsection of Business Studies, 7115, through 2. People in business
Listing 10 of 13 questions
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 2 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 2
7115_w21_qp_11
THEORY
2021
Paper 1, Variant 1
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DNG provides electricity to 16 million customers. It is a limited company which means DNG’s shareholders benefit from limited liability. DNG is planning to stop using coal to produce its electricity. Pressure groups had an influence on this decision. The Managing Director knows there will be an opportunity cost to making this change. She is considering the best way to communicate this important information to DNG’s 6500 employees. Define ‘opportunity cost’. Identify two limitations of using the number of employees to measure the size of a business. Limitation 1: Limitation 2: Outline how having limited liability might benefit DNG’s shareholders. 1 3 Explain two ways a pressure group might influence DNG’s decisions. Way 1: Explanation: Way 2: Explanation: Explain two methods of internal communication a large business could use to share important information with its employees. Justify which method should be used. [ 1 3
7115_w22_qp_11
THEORY
2022
Paper 1, Variant 1
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RSL manufactures paint using flow production. Last year it produced 10 million litres of paint. RSL has 6 managers and 80 employees working in its factory. The managers use different leadership styles. RSL uses email and telephone calls as its methods of internal communication. The Operations Manager wants to understand why some manufacturing businesses are relocating their operations to other countries. Identify two benefits to a business of using flow production. Benefit 1: Benefit 2: Identify two reasons why people work. Reason 1: Reason 2: Outline one advantage of RSL using each of the following methods of internal communication. Email: Telephone calls: Explain two leadership styles RSL’s managers might use. Leadership style 1: Explanation: Leadership style 2: Explanation: Explain two factors a manufacturing business should consider when relocating its operations to another country. Which factor is likely to be the most important? Justify your answer.
7115_w24_qp_11
THEORY
2024
Paper 1, Variant 1
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Questions Discovered
13