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BUSINESS STUDIES PAST PAPER QUESTIONS

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Samaara Sibal
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51 views3 pages

BUSINESS STUDIES PAST PAPER QUESTIONS

Uploaded by

Samaara Sibal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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BUSINESS STUDIES PAST PAPER QUESTIONS(UNIT I)

0450/11/M/J/11 Q3

Q1) 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.

a) What is meant by the term ‘sole trader’?


b) A nursery school is classified as a tertiary sector activity. Identify two other examples of
businesses that are also in the tertiary sector
c) Identify and explain two advantages to Sarah having a business partner
d) Identify and explain three factors Sarah should consider when choosing a suitable location
for a new nursery.
e) Do you think that it would be a good idea for Sarah to continue to expand her business.
Justify your answer

0450/12/O/N/11 Q3

Q2) Mayfair Solutions, a public limited company, develops software packages for customers. The staff
it employs are highly paid, but Mayfair Solutions believes that this is money well spent. The company
has to keep updating its software packages because customer requirements keep changing. The
software market is very competitive.

a) What is meant by the term ‘public limited company’?


b) Identify two features of a very competitive market
c) Identify and explain two possible reasons why the staff at Mayfair Solutions are paid high
wages
d) Identify and explain two possible problems that need to keep updating its software packages
may create for Mayfair Solutions
e) Mayfair Solutions has recently received a takeover bid from a large rival software company.
Do you think that this takeover would benefit both employees and shareholders of Mayfair
Solutions? Justify your answer

0450/13/O/N/13 Q1

Q3) Homeright is a company that makes furniture such as tables and chairs. The company is
successful and has grown rapidly in recent years. However the directors have found it difficult to
manage the speed of growth. The Managing Director recently said that even more growth is planned
for next year. The product range will be doubled and foreign markets entered.

a) Identify two possible reasons why the directors want Homeright to grow.
b) Identify two ways of measuring the success of a business.
c) Identify and explain two possible problems for Homeright of selling its products in foreign
markets for the first time.
d) Identify and explain two problems to Homeright’s management that rapid growth could
cause
e) Do you think that the profits of Homeright will continue to increase if the company grows in
the future? Justify your answer
0450/12/O/N/13 Q4

Q4) Country A has a mix of private sector and public sector enterprises. Figures 1– 3 give some data
about the two sectors.

a) Identify two examples of public sector enterprises


b) Identify two aims that public sector enterprises often have.
c) Identify and explain two reasons why profits are important to private sector businesses.
d) Consider each of the Figures 1–3. Identify and explain three changes that are shown by the
data in Figures 1– 3.
e) 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.

0450/11/O/N/13 Q5

Q5) Dmit is a partner in a small retail clothing business. The business has been successful, but it is
finding it difficult to compete against larger retailers. The partners are thinking of converting the
partnership into a private limited company

a) Identify two features of a partnership


b) Identify two ways of measuring the success of a business.
c) Identify and explain two reasons why the business might be finding it difficult to
compete against larger retailers.
d) Identify and explain three methods of promotion that the partnership could use to
increase sales.
e) Consider the advantages and disadvantages of converting the partnership into a private
limited company. Recommend whether the partners should do this. Justify your answer

0450/12/O/N/14 Q1

Q6) Abdula manages a business partnership that makes sports clothing. The business is working at
full capacity. It employs 12 people who are paid on a piece rate basis. The partners have an objective
to increase profits by 10 % each year for the next 5 years. They are thinking about a joint venture
with another manufacturer of sports clothing as one way of achieving this objective.

a) What is meant by a ‘business partnership’?


b) Identify two ways of paying workers that the partnership could use (other than by piece
rates).
c) Identify and explain two advantages to this business of setting objectives
d) Identify and explain two advantages to the partnership of a joint venture with another
manufacturer of sports clothing.
e) Explain two ways (apart from a joint venture) that the partnership could use to achieve its
objective of a 10% annual increase in its profit over the next 5 years. Recommend which way
is most likely to be successful. Justify your answer

0450/12/M/J/14 Q4

Q7) The Government of country B plans to build a new airport. A Government spokesperson said:
‘There will be external costs, but I think there will be more benefits for the local community. We have
to support businesses such as airlines in the private sector’. RU Air is one of the world’s most
profitable airlines. RU has announced plans on its website that it will operate flights to and from
country B in the future. RU is a public limited company.

a) What is meant by the ‘private sector’?


b) Identify two ways the government might support RU Air and other private sector business
activity (other than building a new airport).
c) Identify and explain two benefits to RU Air of high profits
d) Identify and explain two benefits for RU Air of having a website.
e) Do you agree that there are likely to be more advantages for the local community from the
new airport than disadvantages? Justify your answer.

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