T

The Metropolitan Academy

Jauhar Campus

Final Term Examination 2016

Name: ____________
Subject: Business Studies

Class: OI
Section: _____
Date: _____________ May 2016

Max.Marks:80
Max.Time:1H 30M

Paper 1
1
Michelle owns a successful restaurant. She is an autocratic leader. Michelle believes that highly
motivated employees are very important. She employs three cooks in the kitchen, two people serving at
tables and one person at the cash desk. All employees are paid the same weekly wage. Michelle wants to
recruit a restaurant manager.
(a) What is meant by an autocratic leader?

[2]

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(b) Identify two advantages to a restaurant of having highly-motivated employees.

[2]

Advantage 1:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Advantage 2:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(c) Identify and explain one advantage and one disadvantage to Michelles employees of them all being paid
the same weekly wage.
[4]
Advantage: ---------------------------------------------------------------------------------------------------------------Explanation: -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Disadvantage: -----------------------------------------------------------------------------------------------------------Explanation: -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(d) Identify and explain two factors that Michelle should consider when recruiting a restaurant manager. [6]
Factor 1:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Explanation: ------------------------------------------------------------------------------------------------ -------------

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Factor 2:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Explanation: ------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(e) Do you think that the motivation of the employees would increase if the new restaurant manager used a
democratic leadership style? Justify your answer.
[6]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------2
Halitec manufactures computers using flow production. There are many other computer manufacturers, but
Halitec has a high market share. The business is well-known for the quality of its products. It spends a lot of money on
quality control. Labour productivity is low and some machines are old. Halitec does not do any market research.
(a) What is meant by market share?

[2]

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(b) What is meant by quality control?

[2]

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(c) Identify and explain two advantages to Halitec of using flow production.

[4]

Advantage 1: ---------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Advantage 2: ---------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(d) Identify and explain two ways in which Halitec could improve efficiency.
Way 1-----------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Way 2----------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------

[6]

Explanation: ---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(e) Do you think that Halitec would benefit from spending money on market research? Justify your answer.

[6]

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------3
After losing his job, Juan decides to become an entrepreneur. He wants to set up a shoe-repair business with
his redundancy payment. He would be a sole trader. Juan believes a business plan would help him. Juan has been told
to build good customer relationships. The Government is offering either grants or free training to all new business
start-ups.
(a) Identify two characteristics of a successful entrepreneur.

[2]

Characteristic 1---------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------Characteristic 2---------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------(b) Identify two possible advantages to Juan of being a sole trader.

[2]

Advantage 1----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------Advantage 2----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------(c) Identify and explain two ways in which a business plan might help Juans business.
Way 1----------------------------------------------------------------------------------------------------------------------

[4]

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Way 2: ---------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(d) Identify and explain two methods Juan could use to help build good customer relationships.

[6]

Method 1: -----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Method 2: -----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(e) Recommend to Juan whether he should choose a grant or free training from the Government. Justify your choice.
[6]

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Metropolitan Academy

Jauhar Campus

Final Term Examination 2016

Name: ____________
Subject: Business Studies

Class: OI
Section: _____
Date: _____________ May 2016

Max.Marks:80
Max.Time:1H 30M

Paper 2
1 (a) One of the objectives of Bimisi Buses is higher profits. Identify and explain two other objectives Bimisi might
have for the business.
[8]
Objective 1-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Explanation: --------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Objective 2---------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(b) Bimisi wants to increase the profit margins of the business. Using Appendix 1, identify and explain three ways in
which he might achieve this. Justify the best way for Bimisi to increase profit margins.
[12]
Way 1---------------------------------------------------------------------------------------------------------------

Explanation: ---------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Way 2--------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Way 3--------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Best way: --------------------------------------------------------------------------------------------------------------2 (a) Identify and explain two reasons why employees at Bimisi Buses might want to be members of a trade union. [8]
Reason 1---------------------------------------------------------------------------------------------------------------

Explanation: ---------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Reason 2: --------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(b) If Bimisi decides to expand the business he may need to employ more bus drivers and tourist guides. Do you think
that Bimisi should use on-the-job training or off-the-job training for each of these types of employee? Justify your
answers.
[12]
Bus drivers: -------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Tourist guides: ---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Recommendation: -------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------3 (a) If Bimisi decides to expand the business he will need a bank loan. Identify and explain two pieces of information
that Bimisi will need to provide to the bank in order to get the bank loan.
[8]
First piece of information: ---------------------------------------------------------------------------------Explanation: -----------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Second piece of information: --------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(b) Bimisi has decided to expand his business. Consider the advantages and disadvantages of Option A and Option B
and then recommend which one he should choose. Justify your answer. (Options are described in the case study.) [12]
Option A: ---------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Option B: ---------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Recommendation: --------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------4 A bus company which offers tourist bus trips has stopped trading.
(a) Identify and explain two reasons why businesses offering services to tourists, from home and abroad, could fail. [8]
Reason 1: ---------------------------------------------------------------------------------------------------------------

Explanation: ---------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Reason 2: --------------------------------------------------------------------------------------------------------------Explanation: ---------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(b) If Bimisi chooses Option A to expand the business he will need to promote the new services. Consider the
advantages and disadvantages of each of the following three methods of promotion Bimisi could use. Recommend
which would be the best method for him to use. Justify your answer.
[12]
Advertising on social networking sites: -----------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Advertising through Bimisi Buses website: ------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Advertising on television: ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Recommendation: -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------