Foundation Tier Monday 7 May 2007 Morning Time: 1 hour 30 minutes

Transcription

1 Centre No. Paper Reference Surname Initial(s) Candidate No F Signature Paper Reference(s) 4340/1F London Examination IGCSE Commerce Paper 1F Foundation Tier Monday 7 May 2007 Morning Time: 1 hour 30 minutes Examiner s use only Team Leader s use only Question Number Blank Materials required for examination Nil Items included with question papers Nil Instructions to Candidates In the boxes above, write your centre number, candidate number, your surname, initials and signature. Check that you have the correct question paper. Answer ALL the questions. Write your answers in the spaces provided in this question paper. Information for Candidates The marks for individual questions and the parts of questions are shown in round brackets: e.g.. There are 3 questions in this question paper. The total mark for this paper is 80. There are 12 pages in this question paper. Any pages are indicated. You may use a calculator. Advice to Candidates You will be assessed on your ability to organise and present information, ideas, descriptions and arguments clearly and logically, including your use of grammar, punctuation and spelling. You are advised to spend an equal amount of time, about 30 minutes on each question. This publication may be reproduced only in accordance with Edexcel Limited copyright policy Edexcel Limited. Printer s Log. No. H25731A W850/4340/ /5/5/2/ *H25731A0112* Total Turn over

2 Answer ALL questions 1. The following diagram shows a chain of production for Munch Chocolate bars. Cocoa Farmer Chocolate Manufacturer X Retailer Consumer Using the diagram, answer the following questions. (a) (i) Identify X in this chain of production. (ii) Identify the secondary producer. (iii) What is a consumer? (b) (i) Define what is meant by branding. (ii) Explain the benefits to a business of branding its products. (3) (iii) Explain the benefits to customers of packaging. (3) *H25731A0212*

3 (c) (i) State two advantages of buying chocolate from a vending machine. (ii) State two disadvantages of buying chocolate from a vending machine. (iii) Give an example of a brand name for a drink found in vending machines. *H25731A0312* Turn over

4 (d) (i) Calculate how much a customer would pay when buying six 500g boxes of milk chocolates and four 2kg boxes of assorted chocolates. Show all your working. (ii) State two disadvantages to the customer of ordering chocolates from the Internet. (iii) State two benefits to the customer of ordering chocolates from the Internet. 4 *H25731A012*

5 (iv) Suggest one method of transport for an order of chocolates to be delivered locally. (v) Suggest one method of transport for an order of chocolates to be delivered to another country. The makers of Munch chocolate bars have decided to introduce specialisation by using production lines for the quality range of chocolate. (e) (i) How might the introduction of specialisation benefit a business? (3) (ii) Identify three problems that might come from the introduction of specialisation to a business. (3) Q1 (Total 30 marks) *H25731A0512* 5 Turn over

6 2. Below are three methods of payment offered by banks. Credit Card Cheque Bank Giro Credits date... To London Bank Ltd... Branch Please distribute the credit slips attached as arranged with the recipients. Our cheque for... is enclosed. List No... for... signature... Code No Bank and Branch Account Net Amount total Bank Giro *H25731A012*

7 (a) (i) Give an example of a situation when each of the methods of payment shown above could be used. Cheque... Bank Giro... Credit Card... (ii) Suggest why supermarkets prefer shoppers using debit cards rather than credit cards when paying for their goods. (b) (i) In what situation would a customer use a crossed cheque when paying for goods? (ii) State another type of crossing found on a cheque. (iii) The cheque shown opposite was not accepted by the bank. Why was this? (iv) Name the payee on the cheque shown opposite. (v) Name the drawer on the cheque shown opposite. *H25731A0712* Turn over

8 (c) (i) What is the card-holder s number on this credit card? (ii) State when this credit card expires. (iii) Why do some bank customers prefer to pay for their goods using a credit card rather than cash? (3) (d) Which bank service would you use in the following situations? (i) Changing pounds into dollars for a traveller going to the USA. (ii) The purchase of a new factory. (iii) Obtaining cash when the bank is closed. *H25731A012*

9 (e) How does the use of money overcome the difficulties of barter? (5) Q2 (Total 25 marks) *H25731A012* Turn over

10 3. Susan Pearce, a sole trader, makes and sells children s wooden toys from her home. Susan s costs per wooden toy are as follows: Materials 20 Labour 80 Heating/Lighting 4 (a) (i) Calculate how much sales revenue Susan would receive if she sold 15 wooden toys at 150 each. Show all your working (ii) Calculate how much profit Susan would make if she sold 15 wooden toys at 150 each. Show all your working (b) (i) State two advantages of being a sole trader (ii) State two disadvantages of being a sole trader *H25731A01012*

11 Susan has decided the time is right to expand her business. She is considering leasing some equipment. (c) Explain the advantages to Susan of leasing equipment (4) Part of Susan s plans for expansion include the possibility of forming a partnership. (d) (i) State three advantages to Susan from forming a partnership? (3) (ii) State two disadvantages to Susan from forming a partnership. (iii) Why should Susan and the partner draw up a deed of partnership? *H25731A01112* 11 Turn over

12 Susan now realises that it will be necessary to advertise her business. (e) Explain two types of media that would be appropriate for Susan to use when she advertises her business (6) Q3 (Total 25 marks) TOTAL FOR PAPER: 80 MARKS END 12 *H25731A01212*