Question Bank as Business

Year

Paper

Unit

Marks

S2002 1 1 Environment 2S2002 1 1 Environment 3S2003 1 1 Environment 2S2003 1 1 Environment 3S2004 1 1 Environment 2S2004 1 1 Environment 3

S2006 1 1 EnvironmentS2006 1 1 EnvironmentS2006 1 1 EnvironmentS2006 1 1 EnvironmentS2007 1 1 Environment

W2002 1 1 Environment 10W2003 1 1 Environment

W2003 1 1 Environment


W2007 1 1 EnvironmentW2009 1 1 Environment [2]

S2004 2 1 EnvironmentS2007 2 1 Environment [3]S2007 2 1 Environment [3]S2008 2 1 Environment [3]W2003 2 1 EnvironmentW2006 2 1 Environment [3]

S2002 1 1 Environment 20

S2005 1 1 Environment 20

S2006 1 1 Environment

S2009 1 1 EnvironmentW2001 1 1 Environment 5

W2003 1 1 EnvironmentW2004 1 1 Environment


S2003 2 1 EnvironmentS2004 2 1 EnvironmentS2004 2 1 EnvironmentS2007 2 1 Environment [3]S2008 2 1 Environment [3]S2008 2 1 Environment [8]

W2009 2 1 Environment[10]S2005 1 1 Environment 8

S2009 1 1 Environment [8]

W2002 1 1 Environment 3W2002 1 1 Environment 2W2004 1 1 Environment



S2002 2 1 Environment

W2004 2 1 EnvironmentS2008 1 1 EnvironmentS2008 1 1 EnvironmentS2009 1 1 EnvironmentS2009 1 1 Environment

W2002 1 1 Environment 10



W2009 1 1 EnvironmentS2009 2 1 EnvironmentW2004 2 1 EnvironmentW2008 2 1 Environment [3]

W2009 2 1 Environment[10]

S2004 1 1 Environment 20S2004 1 1 Environment 10S2008 1 1 Environment

S2008 1 1 EnvironmentW2002 1 1 Environment 5


W2009 1 1 EnvironmentS2003 2 1 Environment

S2008 2 1 Environment [4]W2002 2 1 EnvironmentW2002 2 1 Environment


W2005 2 1 EnvironmentW2008 2 1 Environment [6]W2008 2 1 Environment[10]W2009 2 1 Environment [3]

W2009 2 1 Environment [4]

W2009 2 1 Environment [4]S2003 1 2 Marketing 2S2003 1 2 Marketing 3

S2005 1 2 Marketing 8S2007 1 2 Marketing 12W2001 1 2 Marketing 2W2001 1 2 Marketing 3W2002 1 2 Marketing 2W2003 1 2 Marketing 5W2004 1 2 Marketing 3W2005 1 2 Marketing 2W2005 1 2 MarketingW2005 1 2 MarketingW2005 1 2 Marketing

W2006 1 2 MarketingW2009 1 2 Marketing [2]W2009 1 2 Marketing [3]S2003 2 2 Marketing

S2003 2 2 Marketing

W2001 2 2 MarketingW2002 2 2 MarketingW2003 2 2 MarketingW2008 2 2 Marketing [3]W2009 2 2 Marketing [3]W2009 2 2 Marketing [3]

S2002 1 2 Marketing 10

S2005 1 2 Marketing 12S2006 1 2 Marketing

S2009 1 2 Marketing [12]

W2009 1 2 Marketing [12]S2005 2 2 Marketing

S2005 2 2 Marketing

S2007 2 2 Marketing [10]S2009 2 2 Marketing

W2001 2 2 Marketing

W2001 2 2 Marketing

W2003 2 2 Marketing

W2006 2 2 Marketing [10]W2008 2 2 Marketing [3]W2009 2 2 Marketing [6]




S2007 1 2 Marketing

S2008 1 2 Marketing

W2001 1 2 Marketing 20


W2002 1 2 Marketing 10W2006 1 2 Marketing

W2006 1 2 Marketing

W2009 1 2 Marketing

W2009 1 2 Marketing [8]

S2005 2 2 Marketing

S2005 2 2 Marketing

S2007 2 2 Marketing [6]S2008 2 2 Marketing [10]

W2001 2 2 MarketingW2002 2 2 Marketing

W2004 2 2 Marketing

W2005 2 2 Marketing

W2005 2 2 Marketing



S2003 1 2 Marketing 12S2004 1 2 Marketing 2S2004 1 2 Marketing 3

S2009 1 2 Marketing

S2009 1 2 MarketingW2004 1 2 Marketing

W2004 1 2 Marketing

W2006 1 2 Marketing




W2009 1 2 Marketing [3]S2002 2 2 Marketing

S2002 2 2 Marketing

S2002 2 2 Marketing

S2003 2 2 MarketingS2009 2 2 Marketing

S2009 2 2 MarketingW2002 2 2 Marketing

W2005 2 2 Marketing


W2008 2 2 MarketingW2008 2 2 Marketing [2]

W2008 2 2 Marketing [4]W2009 2 2 Marketing [3]





S2004 2 2 MarketingW2001 2 2 MarketingW2005 2 2 MarketingW2006 2 2 Marketing [3]

S2007 1 3 People 12

S2009 1 3 People [20]W2001 1 3 People 12

W2002 1 3 People 20

W2003 1 3 People 20W2004 1 3 People 12W2004 1 3 People 8

W2007 1 3 People 20

W2009 1 3 People

S2003 2 3 PeopleS2005 2 3 People

S2005 2 3 People

S2008 2 3 People

W2005 2 3 PeopleS2003 1 3 People 8

S2003 1 3 People 12

S2004 1 3 People 6S2004 1 3 People 14S2006 1 3 PeopleS2008 1 3 People 20

W2008 1 3 People 8

W2008 1 3 People 12W2009 1 3 People [20]

S2002 2 3 People

W2001 2 3 PeopleW2006 2 3 People [3]W2006 2 3 People [3]S2002 1 3 People 2S2002 1 3 People 3S2005 1 3 People 2

S2005 1 3 People 3W2006 1 3 People 2W2006 1 3 People 3

W2006 1 3 People 20

[8]

W2007 1 3 People 3W2007 1 3 People 2W2008 1 3 People 2W2008 1 3 People 3W2009 1 3 People [2]W2009 1 3 People [3]W2004 2 3 PeopleW2005 2 3 People

S2002 1 3 People 12S2003 1 3 People 5S2005 1 3 People 12S2006 1 3 PeopleS2006 1 3 People

S2007 1 3 People 8W2001 1 3 People 8W2004 1 3 People 2W2004 1 3 People 3W2005 1 3 People 2

W2005 1 3 People 3

W2005 1 3 People 20

W2008 1 3 People 8

W2009 1 3 People [8]S2005 2 3 People

S2005 2 3 People

S2009 2 3 People

W2003 2 3 People

W2006 2 3 People [8]

W2008 2 3 People [8]S2002 1 4 Operations 8S2003 1 4 Operations 2S2003 1 4 Operations 3

W2002 1 4 Operations 10W2006 1 4 Operations 8

S2003 2 4 Operations S2003 2 4 Operations S2004 2 4 Operations

S2004 2 4 Operations

S2007 2 4 Operations [10]W2001 2 4 Operations

W2001 2 4 Operations W2006 2 4 Operations

W2009 2 4 Operations [10]

W2009 2 4 Operations [10]S2002 1 4 Operations 2

S2002 1 4 Operations 3S2005 1 4 Operations 2

S2005 1 4 Operations 3

S2007 1 4 Operations

W2008 1 4 Operations 20S2003 2 4 Operations

S2003 2 4 Operations S2009 2 4 Operations S2009 2 4 Operations

W2002 2 4 Operations W2004 2 4 Operations W2005 2 4 Operations W2006 2 4 Operations W2003 1 4 Operations

W2003 1 4 Operations

W2007 1 4 Operations 5

W2009 1 4 Operations [5]

S2002 2 4 Operations S2003 2 4 Operations S2004 2 4 Operations S2008 2 4 Operations [3]W2002 2 4 Operations W2003 2 4 Operations W2004 2 4 Operations S2003 1 4 Operations 20S2005 1 4 Operations 5

S2006 1 4 Operations S2009 1 4 Operations [8]

S2009 1 4 Operations [12]

W2006 1 4 Operations

W2007 1 4 Operations 8W2007 1 4 Operations 12W2009 1 4 Operations [5]S2002 2 4 Operations S2002 2 4 Operations

S2007 2 4 Operations [6]S2008 2 4 Operations [6]

W2003 2 4 Operations W2009 2 4 Operations [8]W2009 2 4 Operations [3]

S2004 1 4 Operations 5S2008 1 4 Operations

S2008 1 4 Operations W2001 1 4 Operations 2W2001 1 4 Operations 3S2005 2 4 Operations W2002 2 4 Operations W2006 2 4 Operations [8]W2008 2 4 Operations [3]W2009 2 4 Operations [3]

W2009 2 4 Operations [8]S2003 1 5 Finance 2

S2003 1 5 Finance 3S2004 1 5 Finance 3

S2006 1 5 Finance

S2007 1 5 Finance S2008 1 5 Finance S2008 1 5 Finance

S2009 1 5 Finance S2009 1 5 Finance W2001 1 5 Finance 2

W2004 1 5 Finance 5

W2007 1 5 Finance W2007 1 5 Finance S2004 2 5 Finance

S2007 2 5 Finance [8]S2008 2 5 Finance [3]S2009 2 5 Finance W2005 2 5 Finance

W2008 2 5 Finance [2]W2009 2 5 Finance [6]W2001 2 6 Accounting

S2002 1 6 Accounting 2

S2002 1 6 Accounting 3S2004 1 6 Accounting 2

S2008 1 6 Accounting W2001 1 6 Accounting 3

W2001 1 6 Accounting 12

W2001 1 6 Accounting 8W2002 1 6 Accounting 2W2003 1 6 Accounting 8



W2006 1 6 Accounting W2006 1 6 Accounting W2008 1 6 Accounting W2008 1 6 Accounting W2009 1 6 Accounting [8]W2009 1 6 Accounting [12]

S2004 2 6 Accounting

S2007 2 6 Accounting [3]S2007 2 6 Accounting [3]S2009 2 6 Accounting W2001 2 6 Accounting

W2003 2 6 Accounting W2006 2 6 Accounting [3]W2006 2 6 Accounting

W2006 2 6 Accounting W2008 2 6 Accounting [4]W2009 2 6 Accounting [3]W2009 2 6 Accounting [3]S2004 1 6 Accounting 12S2005 1 6 Accounting 2S2005 1 6 Accounting 3

S2007 1 6 Accounting S2007 1 6 Accounting S2002 2 6 Accounting


S2005 2 6 Accounting S2009 2 6 Accounting


W2001 2 6 Accounting

W2003 2 6 Accounting W2004 2 6 Accounting


W2005 2 6 Accounting W2009 2 6 Accounting [2]

W2009 2 6 Accounting [2]

W2009 2 6 Accounting [2]W2009 2 6 Accounting [2]





W2008 1 6 Accounting S2002 2 6 Accounting

S2002 2 6 Accounting S2003 2 6 Accounting S2007 2 6 Accounting [3]S2008 2 6 Accounting [4]

S2008 2 6 Accounting [8]

W2002 2 6 Accounting W2009 2 6 Accounting [2]W2009 2 6 Accounting [2]W2009 2 6 Accounting [2]W2009 2 6 Accounting [2]W2009 1 6 Accounting [2]W2009 1 6 Accounting [3]S2007 1 7 Decision-making

S2007 1 7 Decision-makingW2003 1 7 Decision-makingW2003 1 7 Decision-making

W2008 1 7 Decision-makingW2009 1 7 Decision-mak[2]

W2009 1 7 Decision-making


S2007 2 7 Decision-mak[2]


Question Chapter

Distinguish between private and public limited companies. 1

Explain the significance for companies of limited liability. 1

Distinguish between secondary and tertiary levels of activity. 1

Outline the benefits to a country of successful businesses. 1

Define the term ‘sole trader’. 1

Explain one disadvantage of being a sole trader. 1

1

Explain one difference between private and public limited companies. [3] 1

Briefly distinguish between primary and secondary market research. [2] 1

Explain the importance of profit maximisation for a public limited company. [5] 1Briefly outline the main features of a ‘public limited company’. [3] 1

1

Distinguish between the public sector and private sector of an economy. [2] 1

1

1

1

1

1

1

1

1

(i) plc (public limited company) (line 1) [3] 1

1

Discuss how government policies may affect business decision making in your country. 2

2

2

2

Briefly explain how the Government assists businesses in your country. [5] 2

2

Define the term ‘free market economy’. [2] 2

State three legal controls which affect the way in which businesses operate. [3] 2

Outline one difference between the public sector and private sector of an economy. [2]

Analyse the advantages and disadvantages for a private limited company of converting to a public limited company (plc). [10]

Explain why some goods and services are provided by the public sector in your country. [3]

Discuss why the owners of a private limited company might wish to convert it into a public limited company. [12]Analyse the benefits which a private limited company might gain by becoming a public limited company. [8]

State two advantages of being a sole trader.

(d) Examine whether Candy Shows Ltd. should become a public limited company if the management decides to arrange much larger events. [8](i) private limited company (line 1)(i) sole trader (line 1)(i) partnership (line 1)

(i) sole trader (line 2)

Discuss how businesses in your country might be influenced by government intervention.Analyse the benefits to your country’s economy from a multinational manufacturer of computers locating a new factory there. [8]

Explain one advantage and one disadvantage a multi-national company might bring to a developing country.

Analyse the benefits to your country’s economy of a multinational manufacturer of consumer goods locating a factory there. [8]

2

(ii) multinational (line 12). [3] 2

(b) Suggest why the Government supported Lasting Memories. [6] 2

2

2

Analyse how the Government might influence the activities of GC. 2

2

Explain how the objectives of a business may change as it grows. 3

Discuss the problems a new business might experience in its first year of trading. 3

Briefly explain why it might be difficult to compare the size of different businesses. [3] 3

State two different methods of measuring the size of a business. [2] 3

State two different ways in which the size of a business might be measured. [2] 3

3

3State two ways of measuring the size of a business. [2] 3

3

3State two objectives a business might set in the short run. [2] 4Briefly explain the importance to a business of setting objectives. [3] 4

Define the term ‘corporate culture’. 4

4

4

4Briefly explain why growth may not be the most important objective for a business. [3]

4

4

business objective (line 3) [3] 4

(c) Discuss the likely objectives of the stakeholders in Baljir’s business. [8] 4

4

4

5

To what extent should ethical issues influence business objectives? [10] 5Explain how a business might be affected by political and legal constraints. [8] 5

(b) Explain two possible reasons why the government has encouraged foreign businesses to locate in its country. [4]

(i) multinational (line 3).(i) multinational (line 9)

If PF decide to use the boat for tourists, evaluate the impact the government might have on PF (apart from interest rates).

(a) Explain the advantages and disadvantages of being a small business in food retailing. [8]

(b) Discuss whether the government should support small businesses in your country. [12]

(d) Discuss the relative advantages and disadvantages of businesses such as The Eating Shop continuing to grow in size. [10]

(d) Examine the problems that Baljir might experience from expanding the business. [10]

Briefly explain one factor that determines the culture of a business.

Discuss why public limited companies find it difficult to satisfy the interests of both shareholders and other stakeholders in the business. [10]Discuss how different stakeholder groups might view the decision to change from private limited company to a public limited company. [12]

Briefly explain two objectives a small business might have, other than profit maximisation. [3]

(i) Stakeholders (line 7),

Evaluate how stakeholders in the farm, other than Joe, might react to the proposed contract with Wind4U.

Discuss how a government’s macro-economic policies might affect the ability of businesses to achieve their objectives.

5

Outline how, in your country, legal constraints might limit business activity. [5] 5

Discuss how technological change might affect businesses in your country. [20] 5

Explain how a manufacturing business might be affected by ethical issues. [5] 5

5

(ii) fiscal policy (line 7). [3] 5

5

(ii) Interest rates (line 23) [3] 5

(d) Evaluate the impact on the Travelstop Hotel of a rise in interest rates. [10] 5

5

(ii) Legal constraints (line 5) [3] 5

5

Briefly analyse the factors that might limit the success of PC. 5

Discuss the implications for CC of its ethical approach to business activities. 5

5

5

5

Define the term ‘added value’. 7

Explain why it might be desirable for a firm to have high added-value products. 7

Analyse how a soft drinks manufacturer might segment the market for its products. 7Discuss how a clothes retailer might segment the market for its goods. [12] 7

What is meant by the term ‘market segmentation’? [2] 7

Why might a business segment the market for its products? [3] 7

Explain why successful businesses are usually market-orientated. [2] 7

Outline how the market for soft drinks might be segmented in your country. [5] 7

Briefly distinguish between niche and mass marketing. [3] 7

(a) State two reasons why the market for a product might reduce in size. [2] 7

(b) Distinguish between market size and market share. [3] 7

(a) State two ways in which a business may achieve added value. [2] 7

(b) Why is added value important for businesses? [3] 7

7

Define the term ‘market segmentation’. 7

7

(i) Calculate the forecasted market share of The Furniture Maker for 2003. [2] 7

7

Discuss how the objectives of a manufacturing business might be affected by ethical issues. [12]

Discuss how the Internet presents opportunities and threats for businesses in your country. [20]

Identify information that EFWP needs to collect before it can make a decision about the expansion.

(d) Evaluate the impact of new technology on any two stakeholder groups of Round plc. [10]

(d) Outline briefly how a rise in the country’s exchange rates might affect the Sun Hotel. [4]

(i) export market (line 2)

Explain how exchange rates might influence Joe’s decision whether to accept Wind4U’s contract.

Explain how changes in interest rates might influence the decision whether to invest in the boat conversion.

Explain the importance of a market-orientated approach for a business in the consumer goods market. [8]

Briefly explain two methods of market segmentation.

(ii) Discuss the possible reaction of TFM’s management team to an increase in the level of competition. [10]

(ii) Mass marketing (lines 16–17). [3] 7

(i) Niche market (line 6) [3] 7

(ii) market share (line 2) [3] 7

7

7

7

8

8

Explain why a business might use quota sampling in market research. [3] 8

8

8

(i) secondary market research (line 5) [3] 8

8

8

market research (line 10). [3] 8

8

8

8

8

8

Briefly examine how Joe might research the market for the Visitor Centre. 8

9

How might pricing decisions be influenced by knowledge of the Product Life Cycle? 9

9Outline the main determinants of demand for consumer goods in your country. [8]

9

9

Evaluate the importance of packaging to the successful launch of a new product. [20] 9

9

(i) Mass marketing (lines 26–27)(i) niche market (line 1)(i) market segmentation (line 2)

Why might firms choose to undertake both primary and secondary market research before entering a new market?

Discuss the most suitable methods of market research for a new product being developed by a soft drinks manufacturer.

Explain how market research might be used to reduce some of the problems faced by a new start-up business.

A manufacturer of soft drinks wants information about customer needs and preferences. Discuss how this information might be collected.

(ii) Outline additional market information Our News Ltd would find useful before taking the decision to produce the monthly magazine. [4]

Discuss the marketing and other factors that Tariq should consider before deciding whether to sell components on the Internet.

(c) Examine the methods Joe could use to research the market for his garden design service.[8]

(d) Assuming that the market research results are positive, would you advise Joe to go ahead with the expansion plan into garden design? Give reasons for your answer using all of the evidence in the case. [10]

(b) (i) Outline a suitable method of sampling for TAC. [3] (ii) Explain whether secondary data might be useful to TAC in researching the market. [3]

Discuss methods of market research that Farad might use to help him to decide whether to open the shop.(i) Market research (line 20).

Discuss how knowledge of the product life cycle is important for a business in deciding on its marketing strategy.

Why might an understanding of the product life cycle be important for business finance managers?

Explain how the product life cycle might be used by the finance manager of a business. [8]

Why is it important for a marketing manager to understand the concept of the product life cycle? [3]

9Define the term “product portfolio”. [2] 9

9

9

9

9

9

9

Discuss the factors that would influence GC’s choice of a marketing mix. 9

9

(d) Evaluate The Soup Makers’ decision to stop production of Product Y. [10] 9

9

9

9

9

9

10

Explain one determinant of demand for a product other than price. 10

Define the term ‘price elasticity of demand’. 10

10

Briefly explain why a business might choose to use a skimming pricing strategy. 10

Examine the factors which determine how businesses price their products. [8] 10

10

10

10

10

This business has decided to sell a new small car in your country. Discuss an appropriate marketing mix for this product. [10]

Briefly explain the importance of the product life cycle in planning a product portfolio. [3]

Discuss the importance of the ‘marketing mix’ in achieving the objectives of a business. [12]

Explain the factors that might influence the promotion decisions of a car manufacturer as it launches a new model.

(c) Analyse the marketing factors that MPP should consider when launching the new product. [8]

(d) Evaluate the decision of Our News Ltd to replace the daily newspaper with the monthly magazine. [10]

How does your answer to (b)(i) and other information in Table 1 support Tariq’s idea of focusing more on the sale of components?

(d) Discuss and recommend a marketing mix that a soft-drink manufacturer could use to increase sales profitably in your own country. [10]

(d) Assuming Riteon decides to enter the fashion market, evaluate a possible marketing strategy the company could use. [10]

(c) Analyse the factors that Sophia should take into account in deciding whether to stop selling travel books and to stock more University books. [8]

(d) Using Table 1, evaluate the usefulness of the Product Life Cycle to Sophia when deciding on the future product mix of her business. [10]

(c) Recommend changes to the current marketing mix that might be needed for the restaurant at the international airport. Justify your answer.

Advise Ling on the factors that she will need to consider in recommending a marketing mix for PC.

Evaluate two different pricing strategies which a consumer goods manufacturer might adopt.

State the main difference between a skimming pricing strategy and a penetration pricing strategy.

Discuss how other elements of the marketing mix might be affected by a business’ pricing decisions. [12]Evaluate the pricing strategies a business might use when launching a new product. [12]

Other than price, outline one factor which could cause an increase in the demand for mobile phones. [2]

A business sells a product whose demand is relatively price inelastic. Explain the effect on sales and revenue of a price increase. [3]

Define ‘price elasticity of demand’. 10

10

(i) Penetration price strategy (lines 2–3) [3] 10

10

10

10

price inelastic (line 12). [3] 10

10

(i) Expected demand (line 12) [3] 10

10

10

If sales in month 4 are $800, calculate the closing balance in Table 1 for that month. [2] 10

Using Table 4, calculate the price elasticity of demand for CC’s main product. 10

10

10

11

11

11

11

11

(i) Sales promotion (line 4) [3] 11

(ii) wholesaler (line 13). [3] 11

13

13

How useful might the results of work study be in motivating workers? [12] 13

13

Suppose a product has relatively price inelastic demand. Explain the effect on sales and revenue of an increase in the price of this product.

(i) Using the data in the case study, calculate the price elasticity of demand for tile X. [3]

(d) Assume the business decides to lower its prices for all its products. Evaluate other changes to the marketing mix that The Smart Tile Company might need to adopt. [10]

(ii) Calculate the price elasticity of demand, following the price decrease from $20 to $18. [3](iii) Comment briefly on your answer to (b)(ii). [2]

Analyse the factors that CA would need to consider in setting a price for their businesscustomers. [8]

(b) (i) Calculate the price elasticity of demand for travel books between 2002 and 2004. [4] (ii) Briefly explain the significance of your result for (i). [2]

(i) Using data from the case calculate the price elasticity of demand for Farad’s sales of petrol.

The price elasticity of demand for their main competitor is 1.2. How might CC use this information on elasticity and your answer in (b)(i) when deciding on their marketing mix?(i) market price (line 4)

Discuss how and why promotional activity might change at different stages of a product’s life cycle.Discuss how a computer manufacturer might choose between different channels of distribution in a new export market. [12]

Discuss how and why promotional activity might change at different stages of a product’s life cycle. [12]

Discuss how an exporter of consumer goods might choose between different channels of distribution in a new overseas market. [12]

(d) Examine the marketing difficulties that Ahmed and Beatrice might have if they expand into export markets. [10]

(ii) Comment on your answer to (b)(i).Discuss the extent to which the hotel manager might improve workers’ motivation by re-designing their jobs. [12]

Discuss the usefulness to managers of any two motivation theories when trying to improve worker motivation.

With reference to theorists on motivation, discuss to what extent people at work are motivated by financial reward. [20]

Discuss the importance of delegation for effective management. [20] 13

Discuss the importance for a business of effective communication. [12] 13

How might a business overcome barriers to effective communication? [8] 13

13

13

(d) Discuss the possible reaction of the sales team to the new incentive scheme. [10] 13

(i) non-financial motivators (line 9) [3] 13

13

13

13

Outline the qualities of a good leader in a business context. 15

Discuss the appropriateness of any two styles of leadership that managers might use. 15

Explain the main differences between autocratic and laissez-faire leadership styles. 15

Discuss the likely effectiveness of a democratic style of leadership. 15Discuss the importance of good leadership for a successful business. [20] 15Discuss the qualities required by effective business leaders. [20] 15

15

15

Discuss the importance of good management for a successful business. 15

(b) Explain the possible disadvantages of the leadership style adopted by Kevin. [6] 15

15

15

15

Define the term “span of control”. 16

Explain the advantages of a broad “span of control”. 16

Define span of control. 16

16Define the term “levels of hierarchy”. [2] 16Briefly explain the advantages of a matrix organisational structure. [3] 16

16

Discuss the extent to which financial rewards are a good way of motivating employees. [20]

Discuss how an HRM manager might improve poor levels of motivation in a large supermarket.[12]

(d) Discuss whether MPP should introduce the same working conditions and benefits in all of its factories. [10]

Discuss how EFWP could reduce the need ‘to keep on recruiting seasonal workers’ (line 11).

(c) Would you advise Padman to change to a salary only based pay system at the Sun Hotel? Justify your answer. [10]

Management has been described as getting things done through people. Given this description, explain the importance of management for a large business organisation. [8]

Discuss the view that a manager will be more effective by adopting a democratic rather than an autocratic leadership style. [12]

(b) Explain two management functions that Joe would have to perform if he expanded the business. [6](i) democratic leadership style (line 7).(i) manager (line 13).

Briefly explain why some people might prefer to work for a business with wide spans of control.

Discuss the advantages and disadvantages of delegation for an expanding business. [20]

16Define the term ‘span of control’. [2] 16Define the term ‘hierarchy’ as used in formal organisational structures. [2] 16Briefly explain two advantages of hierarchical organisations. [3] 16

Define the term ‘chain of command’. 16

Briefly explain the main advantages of a matrix organisational structure. 16

(ii) organisational structure (line 7). [ 16

(i) delegation (line 11) [3] 16

18

Outline the functions of a trades union. 18

Discuss the importance to a growing business of human resource planning. 18

Define the term ‘redundancy’. [2] 18

Briefly explain the role of human resource management. [3] 18

18

Outline the process of work study. [8] 18

Define the term ‘work study’. [2] 18

Explain one way of using the results of work study to improve productivity. [3] 18

(a) Define work study. [2] 18

(b) Give three ways in which businesses might use the results of work study. [3] 18

18

18

18

(ii) human resource management (line 14) [3] 18

18

18

18

18

18

Why might a manufacturer change from batch to flow production? 20

Define the term ‘added value’. 20

Explain why it might be desirable for a firm to have high added-value products. 20

20Explain the difference between batch and flow production methods. [8] 20

Explain one reason why an organisation chart would be useful to the employees in a business. [3]

Discuss the human relations problems which the manufacturer might face if it changed from batch to flow production.

Outline the main factors which a manager of a large hotel might consider when carrying out manpower planning. [8]

To what extent is it important for a business to have a Human Resources Manager? [20]Information is collected by the Human Resources Department (Personnel). Explain how a business might use this information. [8]

Explain why a Human Resources Manager (HRM) should have a good knowledge of motivation theory.

(c) Analyse how Lucky might manage the human resource problems that could result from changing from a daily newspaper to a monthly magazine. [8]

Discuss the human resource management (HRM) issues that would arise if CA did switch from low cost flights to business flights. [10]

d) Discuss the importance of Human Resource Management for the success of the new factory. [10]

Analyse the human resource management issues that Farad should consider if he decides to convert the car repair building into a shop.

Analyse the Human Resource Management issues for CC if the planned international expansion takes place.

Examine factors which a multi-national car manufacturer might consider when deciding where to locate a new overseas factory. [10]

20

(ii) productivity (line 16). [3] 20

(i) job production (line 5) [3] 20

(c) Discuss whether Lasting Memories should change from job to batch production. [8] 20

Discuss the impact on BM and its workers of a change from batch to flow production. 20

(ii) Batch production (line 15). [3] 20

20

(i) flow production (line 9) [3] 20

20

20

Why is break-even analysis a useful tool for managers? 21

21

With an appropriate example, explain what is meant by variable costs. 21

21

21

21

(i) fixed costs (line 9) [3] 21

(i) Calculate break-even output, if the new payment system were to be introduced. [3] 21

Calculate the number of books that Jane needs to sell to break even. [2] 21

What would be the profit if Jane were to sell 10 000 books? [2] 21

21

(ii) direct costs (line 7). [3] 21

(i) contribution (line 8) [3] 21

(ii) variable cost (line 22). [3] 21

Define diseconomies of scale. [2] 22

22Briefly explain the importance of economies of scale to a manufacturer of cars. [5]

22

22

(c) Analyse the factors that the multi-national business might have considered when deciding to locate near to The Furniture Maker. [8]

(c) Examine the factors the business should consider before changing to a method of flow production. [6]

Recommend which site (Southwood or Westfield) would be best for the relocation of MQ’s factory. Justify your choice.

Recommend which site (Eastwood or Northfield) would be best for the relocation of PQ’s factory. Justify your choice.

By use of a diagram, show how break-even quantity is established by graphical method. Label the axes and lines.

Explain why it is sometimes difficult to separate costs into variable costs and fixed costs.Briefly explain two ways in which a manufacturer of tinned foods might find break-even analysis useful. [5]

Discuss how, and to what extent, break-even analysis might be used as an aid to decision making in a large manufacturing business. [20]

(c) (i) Calculate the number of rooms Travelstop must sell per month in order to break-even. [2] (ii) Calculate the expected profit for November assuming the booking for JDJ plc is accepted. [3] (iii) Using your answers to (i) and (ii) and any other information, advise Paul Ho whether to accept the order from JDJ plc. [5]

Explain two different types of economies of scale from which a large retailer might benefit. [3]

Briefly explain the possible causes of diseconomies of scale in a manufacturing company.

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(i) economies of scale (line 2) [3] 22

(i) economies of scale (line 10) [3] 22

22

(ii) Work study (line 13) [3] 22

(i) Capacity utilisation (line 3) [3] 22

(i) capacity utilisation (line 7) [3] 22

Discuss the importance of effective stock management for a manufacturer. 23

Outline the benefits of lean production for a manufacturer of electronic goods. 23

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Explain why effective stock control is important for a large retail business. 23

23Briefly discuss the importance of effective stock control for production managers. [5]

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23Discuss why businesses need an effective method of stock management. [12] 23

Explain the key features of lean production. 23

(ii) Lean production (line 13). [3] 23

(c) Analyse the possible impact on the business of lowering stock levels. [8] 23

23

Describe how lean production techniques might be used at GC. 23

23

Analyse the possible usefulness of JIT (Just In Time) to MQ. 23

just-in-time (JIT) (line 4). 23

Outline two ways in which a manufacturer might control the quality of its products. 24Define the term ‘quality control’. [2] 24

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State two reasons why a business should ensure the quality of its products. [2] 24

Outline one way a business might ensure the high quality of its products. [3] 24

(ii) quality control (line 19). [3] 24

(c) Analyse the importance of quality control for The Soup Makers. [8] 24

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24

24

Using Table 2, analyse the possible usefulness to PQ of improved quality control. 24

Distinguish between revenue expenditure and capital expenditure. 25

(ii) The production capacity of tile X is 12,500 tiles per month. Calculate the expected level of capacity utilisation, following the reduction in price. [3]

(i) economies of scale (line 22).

Discuss the problems which the car manufacturer might experience in introducing new technology into one of its factories. [12

Discuss the advantages and disadvantages of using a JIT (just-in-time) approach to stock control for a large retail business.

Explain how JIT (Just in Time) could be used to manage stocks in a manufacturing business. [8]

Using the information in Table 2, explain one method of stock control that TN could use to improve its management of stock.

(c) Analyse the factors that JPB might have considered when deciding to operate a Just-In-Time production system. [6]

Describe two ways in which a manufacturing company might control the quality of its products. [3]

(c) Discuss how Zed could improve quality in ER’s restaurants.(i) Quality control (line 15).(i) quality (line 3).

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Briefly distinguish between internal and external sources of finance. 25

25

25Define the term ‘working capital’. [2] 25Describe one method a business might use to manage its working capital. [3] 25

25

Define ‘capital expenditure’. 25

Distinguish between ‘revenue expenditure’ and ‘capital expenditure’. [2] 25

Briefly explain the importance for a manufacturer of managing working capital. [5] 25State two sources of finance which could be used to finance revenue expenditure. [2]

25Explain the term ‘capital expenditure’. [3] 25

(ii) capital expenditure (line 10). [3] 25

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25

Briefly analyse possible sources of finance that Jane might use. [6] 25

(ii) working capital (line 15). [3] 25

25

Briefly examine sources of finance that might be useful to PF. 25

(b) (i) Calculate, for both years, the gross profit margin of the business. [3] 28

Briefly explain the difference between a Balance Sheet and a Profit and Loss Account. 27

27

Briefly explain the purpose of the Cash Flow Statement in company accounts. 27

27

Briefly explain why a business should depreciate its fixed assets. [3] 27

27

27

Why do businesses depreciate fixed assets? [2] 27

Outline the main contents of published company accounts. [8] 27

(a) Explain the purposes of a company’s Balance Sheet and Profit & Loss Account. [8] 27

27

Briefly explain why different sources of finance might be needed for revenue expenditure and capital expenditure.

Examine the different sources of finance which a car manufacturer might use in order to fund investment in new technology. [8]

Discuss the suitability of the various sources of finance a large business might use when replacing old machinery. [20]

Describe two external sources of finance that might be used to fund the capital expenditure of a business.

With reference to Table 2 discuss possible internal sources of finance for BM’s proposed expansion.(i) internal sources of finance (line 17).

State two reasons why the directors of PC might have difficulty raising the $200 cash shortfall needed in month 2.

What additional information does the Cash Flow Statement give about the financial position of a business?

Explain how two different stakeholder groups might use the published accounts of a business. [5]

How might the main stakeholder groups of a business use the information contained in the published accounts? [12]

Discuss the limitations of published accounts as a source of information for stakeholder groups. [8]

(b) Discuss the usefulness of published company accounts to both managers and shareholders. [12]

Distinguish between assets and liabilities in a balance sheet. [2] 27Briefly explain why businesses depreciate their fixed assets. [3] 27Define the term ‘retained profits’. [2] 27Briefly explain the purpose of a Balance Sheet for a business. [3] 27

Explain the purposes of a company’s Balance Sheet and Profit & Loss Account. 27

Discuss the usefulness of these accounts for managers and shareholders. 27

27

27

Briefly explain how depreciation affects BM’s accounts. 27

Briefly comment on your answer to (b)(i). [3] 27

(i) Gross Profit (line 6) [3] 27

27

27

Using the figures from Table 1, calculate the Gross profit margin in Table 2: 27

27

Explain the difference between cash and profit. 27

27

27

Evaluate the methods a business might use to improve its liquidity. [12] 28

Explain liquidity. 28

Explain one way in which a business might improve its liquidity. 28

28Explain two factors that might affect the profitability of a business. [3] 28

(i) Return on capital (line 3) [3] 28

28

28

profit margin (line 2) [3] 28

28

28

28

(i) profit margin (line 6) [3] 28

(i) Using information from the text and Table 1, calculate the forecast profit for a large event. [5] (ii) Comment on your result. [3]

Calculate the annual depreciation on the new equipment using the straight-line method.

(b) (i) Using the straight-line method, calculate the annual depreciation of the new machine. [2] (ii) Explain the effect of this depreciation on Round plc’s balance sheet. [2] (iii) Calculate the average rate of return (ARR) of the investment in the new machine. Briefly explain what your result means. [4](i) sales revenue (line 6)

Using your answer to (b)(i) and other information, comment on trends in ER’s profits. [4]

(i) net profit (line 3).(i) retained profit (lines 4–5).

State the formula for an accounting ratio that might be used to measure the profitability of a business. [2]

(i) Calculate the forecast net profit for 2006 if the new product is introduced. [2](ii) Calculate the net profit margin after the new product is introduced. [2](iii) How might John use the result in (ii)? [2]

(b) (i) Calculate the percentage (%) change in total revenue of monthly magazines from 2002 to 2004. [2]

Calculate the price that CA would have to charge business customers to achieve the same operating profit per flight as for low cost flights. [3]

(ii) Explain how a reduction in prices might have led to an increase in sales revenue yet lower profits. [5]

(c) (i) Calculate the return on capital employed for 2002. [2] (ii) Using your answer to (c)(i) and other data, analyse the performance of the business between 1999 and 2002. [6]

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28

Calculate the current ratio for 2009. 28

28

28

Calculate the acid test ratio for 2009. 28

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28

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(ii) Net cash flow (line 16). [3] 29

29

(c) Analyse one method of investment appraisal Ratan might use. [6] 29

29

Calculate the value of X (ARR) in Table 1. 29

29

29

Calculate the Accounting Rate of Return (ARR) for the contract with Wind4U. 29

29

Calculate the payback for the boat conversion investment. 29

29

What is a cash flow forecast? 30

30Distinguish between the mean and the median. [2] 31

31

Distinguish between the mean and the median of a set of data. [2] 31

Explain one business situation where the mode would be a useful measure. [3] 31

(b) (i) Capital employed is $40 million for both years. Calculate the return on capital employed for both 2002 and 2003. [3] (ii) Briefly comment on your results. [3]

(b) (i) Calculate the current ratio. [4] (ii) Briefly explain the significance of your result. [2] (iii) Explain two ways in which Padman might improve the management of working capital. [4]

The current ratio for 2008 was much higher. Briefly comment on the significance to MQ of the change in the current ratio.

With reference to the data provided by the Finance Director, briefly explain one reason for the change in the current ratio.

The acid test ratio for 2008 was 1.5. Briefly comment on the significance to PQ of the change in the acid test ratio.

With reference to the data provided by the Finance Director in Table 1, briefly explain one reason for the change in the acid test ratio.

Explain why the payback period might be an important factor in deciding whether to invest in new fixed assets. [3]Evaluate the usefulness to a business of the Payback and Average Rate of Return techniques in deciding whether to invest in changing its production method from batch to flow. [12]

Explain the strengths and weaknesses of the ‘payback’ method of investment appraisal. [5]

(c) For the proposed new restaurant:(i) Calculate the payback period. [2] (ii) Calculate the average rate of return. [3] (iii) Comment on your results. [3]

(i) payback. (line 13)

Assume that the information collected shows a market for the new development. Using Table 1 and other information, advise EFWP on whether to go ahead with Sue’s expansion plans.

(b) Using the information in Table 2, explain why there might be a cash flow problem in the business and suggest one possible remedy for this situation. [4]

Explain the usefulness to Joe of your answer to (i).

Explain the usefulness to PF of your answer to (i).

Explain one way of improving a business’ cash flow.

Briefly describe one business situation in which the median might be a more useful measure than the mean. [3]

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Distinguish between the Median and the Mode. 31

31

31

Calculate the percentage change in sales of components between 2005 and 2006. 31

31

Discuss the limitations of using purely numerical data when making business decisions. [12]

Briefly explain how the Mode might be more useful to a shoe manufacturer than the Median.[3]

Explain two methods that might be used for the visual presentation of business information.[8]

(c) Discuss sources of information that might help Jennifer to make a decision about whether to enter the fashion market. [8]

Documents

Question Bank as Business