Please check the examination details below before entering your candidate information

Candidate surname Other names

Centre Candidate
Pearson Edexcel Number Number
International GCSE

Time 1 hour 30 minutes

Paper
reference 4BS1/02
Business
PAPER 2: Investigating large businesses

You do not need any other materials. Total

Marks

Instructions
• Use black ink or ball-point pen.
• Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• Answer all
• Answer the questions in the spaces
provided – there may be more space than
• Calculators may be used.
questions.
you need.

Information
• The total mark for this paper is 80.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.

Advice
• Read each question carefully before you start to answer it.
• Try to answer every
• Check your answers if you have time at
• the end. Good luck with your
question.
examination.

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P66475R
A
©2021 Pearson Education Ld.
 FORMULAE FOR INTERNATIONAL GCSE BUSINESS

Gross profit margin:

Gross profit = revenue – cost of sales

gross profit
Gross profit margin = 100
revenue

Operating profit margin:

Operating profit = gross profit – other operating expenses

operating profit
Operating profit margin = 100
revenue

Markup:

Markup = profit per item100

cost per item

Return on capital employed (ROCE):

ROCE = operating profit

capital
100
employed

Current ratio:

Current ratio current

= assets
current
liabilities

Acid test ratio:

Acid test current assets

ratio = inventory
current liabilities

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 Answer ALL questions. Write your answers in the spaces provided.

Some questions must be answered with a cross in a box . If you

change your mind about an answer, put a line through the box and
then mark your new answer with a cross .
Huawei is a leading global provider of information and communications
technology, infrastructure and smart devices. In March 2011, over one million
of its C8500 smartphones were sold in China following its launch.

It now manufactures a wide variety of different products including Huawei

smartphones, watches and tablets. In recent years Huawei has won many
awards. In 2018 it was named the 68th most valuable brand by Best Global
Brands. In 2019 it introduced a smartphone which had new photographic
technology.

1 (a) (i) Which one of the following is an advantage of primary market research?
(1)
Select one answer.

A It is a more up to date method of

research

B It is less time-consuming than secondary

research

C It is cheaper than other types of market

research

D It is only done by market-research (1)

agencies

(ii) Which one of the following is a financial

objective?

Select one answer.

A Personal satisfaction

B Market share

C Independence

D Control

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 Figure 1 shows selected financial information for a pottery business.

Number of ceramic bowls sold per 20

day 0
Price per bowl £1
2
.
0
0
Variable cost per bowl £3.
0
0
Fixed costs per day £6
0
0

Figure 1

(iii) Which one of the following is the total revenue

for a day? (1)

Select one answer.

A £600

B £1 800

C £2 400

D £7 200

(iv) Which one of the following would be a disadvantage for

a partner in a partnership?
(1)
Select one answer.

A Sharing the workload

B Liability for all debts

C Access to more capital

D Sharing skills

Huawei’s brand value for 2018 was $7.6 billion. Huawei plans to
increase its brand value by 14% in 2019.

(v) What would be the brand value in 2019?

(1)
Select one answer.

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A $6.20 billion

B $7.74 billion

C $8.66 billion

D $10.64 billion

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 (vi) Which one of the following is a source of long-
term finance? (1)

Select one answer.

A Overdraft

B Sales revenue

C Trade credit

D Bank loan

(b) Define the term sole

trader. (1)

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(c) Define the term business stakeholder.

(1)

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(d) State one reason why Huawei may use share capital as a source of finance.
(1)

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 Figure 2 is part of the statement of comprehensive income for Huawei in 2018.

(CNY) million

Revenue 721 202

Operating 73 287
profit
Figure 2
(e) Calculate, to two decimal places, the operating profit margin for
Huawei. You are advised to show your working.
(2)

................................ %

(f) Explain one advantage for a business of using social media.

(3)

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 (g) Analyse the benefits for Huawei of locating its factories near to its
market/customers.
(6)

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(Total for Question 1 = 20 marks)

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2 Huawei is one of many businesses that manufacture smartphones and
tablets. It therefore needs to keep and retain its staff, so that production
is continuous. This will help to maintain its customers.

(a) State one possible reason why Huawei pays its employees in the UK
above the minimum wage.
(1)

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(b) State one possible reason why Huawei would want to keep its
customers loyal to its brand.
(1)

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(c) Explain one reason why having good communication is important to a

business.
(3)

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 (d) Explain one benefit of being a multinational business.
(3)

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(e) Explain one reason why secondary research would be used by a business.
(3)

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 Huawei use a range of motivational methods to ensure its employees
remain with them and do not leave. It has to make a decision on which
of the following two options it will use. It is considering two methods:

Option 1: financial

Option 2: non-financial.

(f) Justify which one of these two options Huawei should choose.
(9)

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(Total for Question 2 = 20 marks

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