INSTRUCTIONS TO CANDIDATES

Transcription

1 Candidate Name Centre Number 0 Candidate Number GCSE 122/02 BUSINESS STUDIES PAPER 2 HIGHER TIER A.M. MONDAY, 7 June hours ADDITIONAL MATERIALS Calculators may be used. S INSTRUCTIONS TO CANDIDATES Write your name, centre number and candidate number in the spaces at the top of this page. Answer all the questions. Write your answers to all the questions in the spaces provided in this question-and-answer booklet. INFORMATION FOR CANDIDATES The mark allocation for each part of a question is shown in brackets. You will be awarded marks for the quality of written communication. For s use Question Maximum mark Mark awarded QWC 5 Total 105 LH*(S )

2 2 Answer all the questions in the spaces provided. 1. British Petroleum plc (BP) is the biggest business in the UK. It extracts oil from the ground, manufactures petrol at its refineries and sells it through its own petrol stations. (a) Which type of production primary, secondary or tertiary - involves the extraction of oil from the ground? [1] BP owns businesses at each stage of production as shown by the diagram below. (b) Suggest and explain two ways in which firms, such as BP might benefit from owning businesses at different stages of production. [4] (i)... (ii)...

3 3 BP may be considering taking over another business owning a number of oil refineries. (c) Explain one possible effect on each of the following stakeholders if the takeover happens. [6] (i) BP workers... (ii) BP customers... (iii) BP shareholders... BP sells petrol through its own petrol stations and through those franchised to other businesses. (d) What is the term given to a person or business which buys such a franchise? [1] (e) Assess the advantages and disadvantages to BP of selling more franchises rather than opening its own petrol stations. [8] S Total mark Turn over.

4 4 2. Bill Stanley produces handmade greeting cards which are sold to customers at craft fairs and through craft shops. Bill has drawn up a cash flow forecast for the rest of the year. BILL S CASH FLOW FORECAST JUNE TO DECEMBER 2010 JUNE JULY AUG SEPT OCT NOV DEC Receipts Turnover Payments Materials Wages Electricity Business rates Insurance Total Payment Net cash flow Opening bank balance Closing bank balance (a) Study the cash flow forecast and complete the shaded areas. [2] (b) (i) What is a cash flow forecast? [2] (ii) Suggest one way in which a cash flow forecast might be useful to a business such as Bill s. [1] (c) What is meant by the term Turnover? [1]

5 5 (d) Bill would like to further improve his expected cash flow position. Evaluate ways in which he may achieve this. [8] S (e) Suggest and explain three ways in which Bill could measure the success of his business. [6] (i)... (ii)... (iii)... Total Mark Turn over.

6 6 3. Tapio is a Japanese business which produces a range of electronic products including computers and mobile phones in a number of countries around the world. The directors of Tapio are very concerned about maintaining their brand image. (a) (i) What is meant by the term brand? [1] (ii) Explain why creating a brand is so important to a business. [3] Tapio has a reputation for producing high quality products. (b) Outline two ways in which Tapio can ensure that it maintains its reputation for high quality products. [4] (i)... (ii)...

7 7 Tapio is constantly monitoring the sales of its products. This helps the company to determine the stage it has reached on its product life cycle. (c) What is meant by the term product life cycle? [2] (d) What happens to sales during the saturation stage on the product life cycle? [2] Tapio has noticed that the sales of some of its products have gone into decline. (e) Evaluate extension strategies Tapio might adopt in order to reverse this decline. [8] S Total mark Turn over.

8 8 4. Associated British Foods plc (ABF) is a British company operating in the food and retail sectors. It has annual sales of over 8 billion and it employs over workers in 44 countries. (a) What is the name given to a business which operates in many countries? [1] (b) Suggest and explain two benefits which ABF might gain from operating in many countries. [4] (i)... (ii)... (c) Outline one disadvantage ABF may experience from operating in many countries. [3]

9 9 ABF employs workers worldwide. It needs to have set procedures when recruiting employees. (d) Outline the importance of each of the following in the recruitment process: [6] (i) job description; (ii) references; (iii) short listing. Turn over.

10 10 ABF has diversified into four areas. These are Grocery, Sugar, Ingredients and Retail. ABF produces ingredients for food & non-food products. ABF is the second largest producer in the world operating in nine countries. INGREDIENTS SUGAR ABF RETAIL ABF is a major producer of grocery products. GROCERY ABF has 184 stores in the UK, Republic of Ireland and Spain. e.g. Kingsmill Ovaltine Ryvita i.e. Primark

11 11 (e) Explain why businesses, such as ABF, diversify into a variety of different goods and services. [6] Total Mark Turn over.

12 12 5. Great Gates and Co Ltd has a factory in South Wales. In this factory it produces gates. Some are made to supply garden centres and do-it-yourself (DIY) shops. These are made to standard sizes and designs. Some gates, however, are made to meet individual orders based on sizes and designs provided by customers. (a) Suggest and explain the method of production Great Gates and Co Ltd would use for making (i) standard gates and (ii) individually designed gates. (i) Standard gates. [2] (ii) Individually designed gates. [2]

13 13 Problems in the UK economy have meant that sales have fallen and that Great Gates and Co Ltd need to make some workers redundant. They need to discuss the issue with the trade unions who represent the workers at the factory. (b) Apart from helping to protect jobs, outline two ways in which trade unions can help their members. [4] (i)... (ii)... External factors will have an impact on businesses such as Great Gates and Co Ltd. (c) Suggest and explain one effect each of the following might have on Great Gates and Co Ltd: [4] (i) a cut in the rate of income tax paid by the customers of Great Gates and Co Ltd; (ii) a cut in the rate of interest paid by Great Gates and Co Ltd on money it has borrowed. Turn over.

14 14 As the economy recovers the directors at Great Gates and Co Ltd are considering whether or not to change the business into a public limited company. (d) Advise the directors on whether or not the business should become a public limited company. [8] Total Mark

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