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    Igcse Business Studies Revision Guide

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    Anushka Yadav

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    er Cambridge IGCSE™ and 0 Level Business Studies Me Rs lol) 4 HODDER Contents Section 1 Understanding business activity rewseo reste Az 1) Business activity 1 Clessicatin of businesses 4 Enterprie, business growih and size 7 ‘Types of business organisation " Business objectives and stakeholder objecties 15 Care study: Understanding business ety ” Section 2 People in business 6 Motivating employees 2 1 Organisation and management mw {© Recruitment, selection andtraining of employees 3 9 Internat and external communication a Case study: People m business a Section 3 Marketing 10 Marketing, campetiion andthe customer 6 AW Market research so 12 Themarketing mix product, 35 13 Themarketing mix price ra 1 The marketing mix: place 6 15 Themarketing mix promotion a 14 Technology and the marketing mi n 17 Marketing strategy % are say Marketing a Section 4 Operations management 18 Production of goods and services 83 19 Costs, scale of production andbresk-even analysis 98 20 Achieving quality production 3 21 Location decisions % Case study: Operations management ” Section 5 Financial information and financial decisions 22 Business finance: needs and sources w 23 Ceshtlow frecasting and working capita, 106 2 Income statements m 25. Statement of fnancil postion 15 26 Analysis of accounts 20 Case study Financ information and financil decisions me Section 6 External influences on business issues 27 Economic issues mm 20 Environmental an ethical issues wae 29 Business andthe international sonomy, 137 Case study Exeral influences on busines atvty 161 Anowers us Index 0 Bed ay aeseinad wea AT HodSer&Stuphin Limited © Karen Borington ad Ptr Stinson 219 a 5a to photocopy this page Introduction Welcome tothe Cambridge GCSE" and O eel Busines Stes Third Eton ‘Stay nd Rerson Ge, This book as been written to help you revise terything you need to know fr your Business Stuties examinations, alongside the Cambie IGCSE and 0 eel Busines Stes Fh Ein Stet’ Book Following the Business Studies sylabus, it cover al the key content aswell as sample quston and answers, casestudies and exams practice questions ‘whey you lear how to ane questions and to check your understanding How to use this book Key objectives ‘The key pins covered inthe chapter. 7 Teacher's comments q Feed roma teacher Key definitions ‘fonin what vs good Se Sn wt could be ‘proved in the ster Denon he ey ers you ao bam Ciosseferecs tothe Student’ Bok ae shown by this con (He). ‘Aéviceto help you give the perfect answer: ‘Shor-answer examinationstle questions for you to see what you have learned ‘Combridge GCSE and 0 Level Business Suties Stay and Reson Guide Target your revision 1 Checklist ofthe key concepts and topes covered inthe chapter. ate {vestions fr yout check your understanding and progress. Common errors Wistakes students often mae, and how to avoid them. Sample questions and answers——: Exan-stye questions with sample student answers ‘to show how the question canbe answered. ‘The annotation ned tink to the syabus assessment objectives: ‘© AO1 Knowledge and understanding [K] ‘© A02 Application [Ap] (© A03 Analysis (A) ‘© AOS Evaluation (6. Case studi -End-ofevion ae sues wo practic the sels ‘ete Sethe eve ey ex ape. Answers ‘uttne answers to the Test yourself questions, xam-style questions and Case study questions from pose 163. Hodder Stoughton Lnited © Karan Borinton and Pte Stimpson 2017 a lntroduction Tied ay Adaya Study tips = ost Cambridge IGCSE* Business Studies questions require you to apply your answers rectly tothe business outind in the data or case sty. IF your answer could be suitable for any business, then you probably have not Zope your knowledge and you wil not gino ofthe available marks. Ty undertining the key words about the business outined: Tt a sole trader or partnership, for example? What does it sell or what service does it provider What ae the problems i facing or what decisions does it have to make? How many employees does it have? Are they skilled? There ‘lb information provided aha the hin and you should use it to help answer the questions. ake sure you explain - or analyse - your answer for short-answer {questions and all aze study questions. Short statements may not gan you ‘lof the available marks, raluatve short answer questions and longer case study questions require 2 judgement tobe made. For shor answer questions, you will need to fvaluate and show judgement. For longer case study questions, make sure tat you weigh up each option before deciing which one f the best. Simply stating which option you ‘thinks the best fs nt a justified decision ~ you must give a reason for your choice. To gain Full marks you sould also explain my you ejected the other options Karen Borrington and Peter Stimpson legato photocopy i Cambridge I6CSE and 0 Level Busines Stutes Stay and Reuision Gu Business activity Key objectives ‘The objectives ofthis chapter are to revise: © the concepts of needs, wants, scarcity and opportunity cost S the importance of pecalistion the purpose of business activity the eanept of ding value and how added value can be increased, Key definitions Economic atiem ‘Searcity ‘tans ae ume. Theres unlimited was but nied rescore to produce the goose aries o itty thas wants, This eeates sary “The reagurces nested to produce geod or services Thre ae our factors of production Hand ober cpl and enterprise] anata ren Ure up “Thelack of sulci prduci tol te toa want ofthe popuiaicy. Opportunity ost The nen best ateatve len vo by ceasing sete er. Speciianion Ocrars when peopl and businesses conceiat on wha hy Don bor ‘When ne production prceer isp up int erent ase and each ployee prisms | _inwol her task Drsin fabeursa form speciation. isnesses “Businesses combine actors of production omke products good ad series that eee tay peop ‘ded le “hedilerence between he seling pit of product nd he cst of ght materials and Business activity Teapamames | | metRE Te | meena ‘se Val coraumars pay higher mane. _esoaces oa cacy (the Sr peer ete nape aa a atnss nig asnrernn, aes! sg, aes eee cont pot se caearts tan Tver pare b i iF Hodder & Stoughton Limited © Karen Borinton an Peter Stimpson 209 a Target your revision Ea 1 Opportunity cost exists because resources ae scarce compared with ‘unlimited wants ~ so choices have to be made. ‘© Specialisation tries to make the best possible use of available ‘s Busineees use scarce resources to produce goods and services that are needed to satisfy peoples’ wants and needs. All businesses aim to add value tothe materials and components that ‘hey buyin. 1 Stat three rerourcs that businesses need before they can start to produce goods and services 2. Give an example of opportunity cost fr a government 2. Explain how a business making wooden toys could use specialisation. 4 State two waysin when a business making cosmetics, uch s lace reams, could increase added‘vave tothe materials buys [Answers on page 143 Common errors my rer [Wi wae are mene wil Stee ecanamiepablem The reir scandy ets ‘Dison aflabour means thot each pay performs | Oso of abou eds ospcialiston of abour= iran tere ark. employees conenrasonene tase ‘aed vale the same oe peat ded values nel the same os pot ee casts have Sample questions and answers mE | The ARC business produces and sels cosmetics. These are sold in supermarkets. Ie uses modern capital equipment, allowing division of| labour so employees can specialise, Several employes have left ARC recenty, The Bela perfume, ARCS best-seling product, sells for $7 2 bottle, Each bottie contains materials that ARC buys infor $2. ARCS ‘managers want to increase added value The Marketing Manager thinks price increases the best way £0 do this. 1 Explain one advantage and one dsasvantage to ARC of division of labour 1 legelto photocopy tis 29¢ a Cambridge GCSE and 0 Leet Business Sutiee Stay and Revison Guide Student's answer Disionafabaumean that npljeos ard macho specalseparbsr taka) -such as lrg pertunebetes [Pp] Tieden proves faery ac oployees cannon produce marin theta sine (4) Eyles can become ore they do one ane allen) Te cold be ‘hereon sera onpyeshieleft ARC recat (pl Bored a wrk (anleed olor netted tei one renter ny erplyes can ve ae, erensng erent costae AC (A 2 Do you agree withthe Marketing Manage thatthe best way to ‘increase added vale fora product sto increase price? Justiy your answer, @ Student’s answer ‘eda te atfeercebebvemtheselingpriceandthe cost oFeaht- Inmates (K]Apree cease noudrase the ade alt Che radi tslen another oot stayed the saa theburesss prot nua area (A) Hower the consamersmightbylosf tho product an before fale fl profits cad aecresse 20 _Abetcr osm toed contsoFboueinmatarls Frame the bones colin aplntc comport ated of ats one Lever matrl costal nrenne added a [fb consumers might Ck he at has ‘ale nding fone the produces tha btore [ar] Hamer. eHM ‘beer rity pies othe Woteoemayhaverany compeutorn ifthe sree nen rte dere nl ile] al ess redicos oot. making thithebstar opt [6] Sameer tee [Bisa bakery business that produces bread and cakes. specialises in bigh-qually cakes for wedsings and birthdays. Tere is tle division labour used. A ypical wedding cakes sold Tor $50 using bought ingredients costing $15. Bashir, BB's owner, wants increase added Value ag thinks the best way t do this iso buyin cheaper ingredients forthe bread and cakes his business produces, 5” Deine “svson ef labour’ a 5 Calculate the added luo ofeach wedding cake fa) Outline two fatiors cf production that BB needs i 4. Explain one benefit snd ane drawback 1 B5of specialising in high-quaty cakes, cr The best way to nrease ade value ito buy in cheaper raw tater Do you ares? lusty your answer, wl ‘Answers on page 143 Teacher's comments. Good tart. Student defines division of labour and aso applies an vareage to ARC and lan (onalyses) The dsadvantage s also plied to ARC and well ‘lane. Good answer Fall mars, Teacher's comments ‘nother good start — thre fa char definition and rae of the possible fect of ising price and analy ofthe possible fect of using cheaper Instr at bth ‘need, ‘This mer shows very {good anderstandng of edad value oth wage of ‘ncreisng ade value are eagle and lea inal jdgenent made, Fall ars, x lL Je Start each answer ‘wth definition planation of akey te'mif possible fe Ihne case sty canta figures try Toure these toast orc in your answers adder & Stoughton Limits © Karan Borringan and Pte Stimpson 207 a 2 Classification of businesses Key objectives “The objectives of this enaper are to revi the diferences between primary, secandary and tertiary production the reasons for the changing Importance af business classification, Torexampl,n evciope and deveioping economies «© thediferences between public sector and private sector business enterprises ina mixed economy Key definitions EE] Primarysector The primary sector of mdustry extracts and uses the natural resourcesof the “ rode ran materilsused bythe busessos, ‘Stcony clr” The econary eco olny manulctres goods using the rev mitrias provided by Trtny sector” The etry actor lusty prove seniceso oncuers i. dectine inthe importance ofthe secondary, ma Decndutrtisnon Occurs when he einseratenien ndetyinacounty, tied economy Amibad econ oan a ube tel sector. — Captal Themonay meted inte burns by he ers Classification of businesses (GE) mess EE Businesses can operate in the primary, secondary and tertiary sector. mer Sapo re sear || tere ete “Nona Stee er ‘ase tage i pete —- ki eS a] Cea Snnenseede 2 a Cambridge I5CSE ond O Level Busnes Sues Study and Revision Guide 2 Ciassicaton of businesses Target your revision Peso il 1 The thee stages of economic activity are primary, secondary and tertay. {The relative importance ofthese sectors to different countries can vary greatly 1 The tertiay sector i becoming more significant in many developed economies. ‘© Mixed economies have business organisations in both the private sector and public sect. as 1 Which sector economic activty would he following businesses be ‘lasetie ia? shoemaker: baker: fruit grower: insurance company; hotel: forestry Iwoodeuter) 2 Suggest one reason why primary sector economic activity becoming relate less imprtant in many counties, 1 Suggest one reason why tertiary sectar economic activity tends to became more mpartant as an economy becomes richer 4 State two business activities usualy undertaken by the public sector. 40 Answers on pt Common errors may sires can iy optate ove buses cecter™ | Semebuanerees oer al hee air. ‘Organisations inthe publi scr clan canon ncude | Pb ited companies eee Chip lar inthe Sample questions and answers mE ‘Country X used to be a major producer of agricultural products and ‘timber In recent years the government of country X has encouraged ‘he construction of large industrial estates and these have reduced land available for farming. Consumer incomes are rising rapidly and ‘the demand for holidays, restaurant meals and financial services ‘is inereasing. Country is alow income country but it has large reserves of cal and huge fish stocks, 1 Explain two possible reasons for itferent levels of activity ‘nthe business sectors in country X and country io) oder & Stuphin Limited © karen Borigton and Petr Stinson 219 a : Student's answer “The primary sector prodcos ead andran ater he secondary actor manfacare good andthe ori coctor proven onic) ifacoutry has alo of frelon tary factor ay hae Hprimarysoxer andar secondary sector A} tacameryorenutchhighinces censumersuillagentalotonsenice sichaa alas toppg e) Teacher's comments Defining the thee sectors of busines activity i useful starting point. ne fata explaining ferences in ferent couteles sectors of business activity sided and explaineanalsed- but nt applied to cunies Xo. Same sls are shown inthe third paragraph ~ but also, no application, ath: Ke; Ap And =n otal. 2 Do you think thatthe tertiary sactor of busines activity will, become more important n most countries? Justify your answer. (6) Student's answer Terry stor bien acta becomes Roe inporEane MBSE EN coe asconaumershae eran) open [K]Oneecotaurerahavestisfed may ftharnanesaichss fod dk ony shdaone umryprafict mucho cht Incas spart on servos (These tcuas hardreset opp hays ‘ndfrarl serosa conoumer name ore rahgrapdy se acurydowlps ‘Renuerymir be prosumer mary rai ab deep became eho {inter fr eape mii be and bas ater od production (AN) Fexam-styequestons Jo uns small shop selling takeaway meas in county P, whieh has ‘mised ecanony. The shops called Best Foads. She buys in food supplies Such 5 pies ana soups from Foodsure, food-processng business. Most olthe meat an vegetabos used by Fodsure are supplied by local farmers. They transport thir raducot Foedsure and ther food processing businesses onthe ral system, which s owned ad controlled bythostateincoutryP Fooseure woe racer coi bythe government 3° Part ft pstiation programme sits na langer inthe public sector, Detine mised economy Deline publ sector 2 © itl fr any two usinescesin the case study above, which ‘sector of business activity they operate «Explain we possible reasons why the secondary sectors declining inimportance in country. @ ‘© Doyou think that shops should ben the private sector or public sector ofthe economy? lusty your answer a “Answers on page 143 a Cambridge 16CSE and O Level Business Stutes Study and Revision Guide sample guvstions and answers Teacher's comments. ‘This anor shows an understanding oF wy the tertiary sector often grows in importance in ‘ost veloping and high income countries = this see slo Both knowledge and analysis. ‘Thee fsno mention made Secondary sector bases: activity ~ this ‘ould br neeasing in the Ceuntryteo its stl baling many factories, ‘This asthe student cannot rake an effective “adgement and the ane ‘lip shews no evaluation ‘in answaring the question. ans: Aa: 0 =3in toa. 1 Usethe information provided and aplyit Enterprise, business growth and size Key objectives ‘The objectives of this chapter ae lo rvie 12 tebenelits and drawbacks of being an entrepreneur 1 tekeycharscerais of auecessfalentroproneurs 1 thecontens at business plan and how pans assist eneepreneurs ‘3 why and now governments support business start-ups themathods ef measuring Business ie the tations of he methads of measuring business ice ‘why the owners of 3 business may want to expand the business Aiferen way in which Businesses can grow the problems inked to business growth Bra how they might be «2 why some businesses remaia small 1 the causes of business faire 1S why new businesses areata greater risk of alg, Key definitions n= | Enlrepreneur person who organises operotes and takes the rik for “Busca pan Adecument santesng ta inca jecrca od Capital ey ines “neal growth Occurs when abusnes expans is existing operations binness ts aftenalledinaprtn ab one business ved Tho otal of apa ured ine buries. Taieoier busines buy ut the urs aatbor Tuners wrihthen becomes pat lth preastr bisiness ite business whieh na nen over Mae row an equ, | were ‘When the owners of two businesses ares in tr businesses eter to meke one business, negation Sein the sume ndiry te sare stage rel. ‘orcalintgraon”” When one busines merge wih rakes over anther ‘nein the sme utr aut at eran productan Vere megratnesn be frwardor Fein Cengomrate Ineratin Hodder Stoughton Lined © Keren Borriogion and Fete Stimpson 2017 i a Na acc a, Sie of business and business growth Enterprise and entrepreneurs (@@) ruesr-x m=] See ‘smyth pete Teeter ene agp nde igi aneee nes Emeriss and ers entrepreneurs {ite eae ce eS Stones couse eens amor vanessa ate teter es oer ree nam tengo ant ens Pree bee han eae gor = asst Fone ‘Why aloes ae mre a ok 3 Snes odimmatcerwmies| | ta = te eee oa econ ae a ‘combridge JOCSE and 0 Level Business Studies Stay and Revision Guide - ness gro ond ese Target your revision Ey) 1 Entropeneurs have several main characteristics and these are Important fora successful busines. © Entrepreneurs take risks when setting up new businesses, but there can be great benefits if they ae successful 1 Busnes plans help entrepreneurs prepare the resources they wil need for thet businesses. ‘Busnes sie canbe measured in several different ways, such as value ‘of output; vale of sales; number of employees; capital employed Businesses can grow by merge/takeover or just by opening new branches factories, ‘Soma businesses fail and new busines start-ups have the greatest risk of faire 1 State three characteristics of successful ‘entrepreneurs. 2 Listehree sections ofa business pan businesses, 2. Suggest two reazons why most governments 5. Give two reasons why the owners ofa business support business startups. ‘might plan to expand it. | Suggest two reasons why abusiness start-up might fal ‘Answerson page 164 Common errors El Err Write wrong Busines plane Bushes lan an help to reduc ek nduncrtny for new buinsses bl ating guarantee sucess | can quranee the sce ‘anew buses Profits area g3o8 way | Pro levls depend on any faces such sefieny and efleciveress bu oat comparing these” neessri thei la buses. veh nou wo Busnesses et sare sie ef tinsses iSsrreasared byoutpt or arbers npayel rots could bs veryaeret Theres oth Hortontalintprson aby between Ausibsses lth same sae proucion. taco rad |e canetacead var vl ror vad he ark Sample questions and answers = ‘Yasmin started her own small bakery busines lst yea, She had previously worked fora large bakery, Yasmin works si days a week She has ‘eveloped severat new recipes fr tasty bread and cakes. These ae very popular with her customers. Her bank manage loaned her a large amount '¢ For questions that Fecureevluation tie important to consider lof money last year after eating her busines plan An old established ath ses of bakery near o Yasmin curently forsale, argument and explain leary why you are 1 Explain two ways in which Yasmin has contributed tothe sucess ‘mating your ena, of her business. [oy | @ Rentquestons carey sncchuck that your ‘nave is sopropie adder & Stoughton Limited © Karen Borington and Ptr Stimpson 20 a Sample questions and answers Student's answer Teacher's comments ‘iosnio crest andthninaninprtartcirscinetoteentrnars[K)Sie | This is agnod pont. The etnigheupsonetinsecpesinchareppsarnithcisarrs fy) Wozmere | ane entifis one of Symoretnean cles om Yao berate pil res) ‘Yeni racers and ala wy ths has led to ‘eon rigtnithavemichoampetion Lowcangecionwimentiatcotoneowl | he saan her bly er toluyiedandcatlo ram harsh Ho nakaha bss mere cuceet The second point is not answering the question 2 Do you tink a manufacture should takeover another similar eens es nota way business that i forsale? Justify your answer. 6) inhi Yasin hs other tusinss. Student's answer Marks: Apts And =3 iFehccwerofabuines dncied totale owraorteremlarbuaresa woud | in tata tehoraontalineyaten Fe] Fer exam sothbusnessetale red andmake akon Thetateorer woud ge a gg marketshare andthe new tigger hse mah bestecotuyinmateio mae cheap because fuk THEE Feb to here ho profes oF the busrass (A) Teacher's comments HoeriepenetotaicomarthernatessX)Tbueresogheothave | Thane vey ood. ttoaptolnedvobythecther bushes klemaydeayfoeatariessrdmay | The sudnthascorecty Itbealetopnttenditionlaapedresdstotskeoerthectarcrass wo) | identified and defined horzotal integration, Iyouiror ne tpn oan thay rend aak pene lanEnaina ters rayerondesaedeperntyoerandarie | Raut te tere contin) nd anargumet spit. Both oe extie. The | Exam-style questions a “The able below shows data for thee shoe manufacturers in 2018 eee Business Chae not grown inthe last ve years thas always been owned bythe same fay and they do not want ther a alee become ouners ‘ofthe business: Business Cont produces shoes fora small artofthe mare. Te owner af Business want to expand the busines external ‘The onner of ons af his major eater suppliers is retiing and wants ‘allie business, Busines , another she manufacturer that opane just $e monthe ago, falled recently hws setup asa sle trader by someone “who wie te workon the production ie of age food manufacturer. 2 "whichis the arget business: |” 1 intermsof sates? o 5) is interms of capital employed? i | Dating antropreneur 2 E| © iting two possi reasons why businesses fai. ia | & Enplain two possible reazone why Business Chas not grown in Sy) © recent years w |e Goyouthinia manutacturer should take vers major supplier =| © Gteaw mateise? lusty your answer: w [Answers on page 166 a ‘Cambridge ICSE and O Level Business Stutles Std andReusion Gude Types of business organisation Key objectives ‘The objectives af this chapter are to revise {the main features o itrent forms of business organisation saletraders, partnerships, private and public inited companies, franchises ang int ventures © theasvantages and disadvantages ofeach ofthese forms of business organisation «© ferences between unincorporated businesses and limited ompanies {© thecancept of risk, ownership an init bity 1 how appropriate each af these farms iin different circumstances 1 business argonsaions inthe puble sector. Key definitions = - _ =) term bation a Soltrader Abvanessownedbyone person ited nity” Lied aby means that the iii of Sharcholars ina corpany blind othe raunthay ete, “Game iabity Unite edit meen that he omnes as busines canbe eld espana tte busesstner own Tabi tte othe vertmen he mate ste “Partnership Afarmol business in which two ar more people agree to jointly own a >usiness, Forersip” Theories, pt orommt vernsnss pres isles parle Seater a anand ae Cnserpoicd” Roane tl wrth separ ely Siow el pre cova cman eee teepid Aber tata er nome ‘Srohidar ~~ Wecmparaiainied someon, Triste?” Ransomed shart li atl arr op every ae oes - Paci) 7 Abaca need yaar eer bat er lchaw opal ea caer ere ae as femal dat” Aap oqronet rl ermprcsSarccls maya ani ere roaitGa _ ibeane saree eae a elie pyr anes ro oan Tyo Rants snnarsormnsusn pecan “Franchize A business based on the use of the brand names, promational logos and trading methods af resting sucessful business. The anchise buys the enc pratense “i venta ike aa i, Pubic corporation” Abysmess inthe pul ecar that isonned and contra by the sale lererment ied Kosa oo Hodser &Stoughin Limited © Karen Borigton and Petr Stimpson 2017, a Types of business organisation (HB) ness m= | Set nee ponte de ete Um nt INS age ng of stance ‘Main types irre ara nee ‘of business pt ines ha gs organisation ‘Se ieepeeg rE Target your revision m= | ‘©The main forms of unincorporated businesses are sole traders and partnerships. 1 Limited ability for shareholders is 2 major advantage that companies hav. 1A fanchisor sls Weences to Franchisees to allow the use ofits business name/logo and sell its products. 1 oint ventures spread the risks of creating 2 new busines project ‘© Pulie corporations are businesses in the public sector 1 State twa advantages oan entrepreneur of setting up in business as ‘sole tracer. 2 State two benefits a partnership might have over sole trader, 5 Give one benef of forming a company rather than being an Unincorporated business. 4. ve two difrences between private limited companies and public limited comparies. 15 Why migh the owner of» small alé business decide to buy 2 Franchise rom larger business? {6 Give one reason why business might form ajoint venture 17 Suggest two posite imitations of public corporations Answers on page 16k aga to photocopy ths page g ‘Cambridge GCSE nd 0 Level Business Studs Study and Revision Gu “pes oibusness organisation Common errors I ror Wits won| Partnerships cn One companis canal shares sallshrertorace Sal Privateiited | Yes hyd, ad harholers are a major eure capita for them ba ase companies companies ot | al treat poor tade shores lak erage covpaieamre | husncse~ond heres theraiare dicen bebwesn nmersip oar cer] and conta Gated” | vectors, uc erpratine| Publi corporations ar und bye ite gevernmenl and ono hve haroholers imtamate prote | hough heymghtaimtarmakesprafttheymghtnav ater bere toa 2. pubic Sample questions and answers ma | (ny car clearing business s growing fat. He tok on Sam as business pate ast year am took over responsibilty for accounts. They now employ ten employees Ony wants more tne to deal with customers rectly ~ ashe did when te business Fist started, The pares plan to buy an automatic ar washer but iis very expensive. They ae thinking of buying 3 fanchize cence from a national chin of eat wach centres ~Autogean, 1 Outline two advantages of having a business partner. a Student's answer Teacher's comments ‘ne partnor can ge one oftharworktozhetherpartwrik] -eucrasioopra | ¥8\gMd Boies Cah account Tb lgne one partnormeretine to opendwth customers A] ‘elated to taking on anew They ae both Tepartercoapucmare catalina tegen [Ths oudhae boonucas| Par Tey a optrchasetheewe.pmert witout the need toborrwfomabank el es all mats, 2 Explain two disadvantages to Ony of buying a fenchise. @ Student's answer ‘Afranclise cence might be vey expercte ik] andre uninoos mh ot bale {ontieann teammcnnt negandg the buenos (A Franchsorsoften tate aor ofthe france mao (K] The mean ‘ha threatens revenue efor thbunnenstarmakea ot A) Hodder & Stoughton Limited © Karen Borington an eter Stimpson 27 a to photocopy tispage es @ Cambridge 190SE ond 0 Level Busnes tae Study an Revision Guide Teacher's comments ‘Again, two good prints made about the initatios of buying a franchise. ‘But can you ae that they rent ape to Ony a Sans busines? The Student could have suggested that they might nt nom be able to afford he ‘new automatic car water, The stent could ave sugpested that ss pet ‘rl nen that ani and Gy wl be ble to ak ss income ro the Buses. ars: Ks Apt Ard =n toa > bayou tinea partnrchipchould convert the busines erate aad apa etsy o Student's answer Teacher's comments SS cere ecercrwsourtocimesticcy itm, | siuaebesas are seeeCutterpecalLccottanarcoticcmperysettey | aaa se remivannereemeaeny acces | (iaietiteeem Imaiconpns tyne tpaytoraccesescngeryouueot! | Be and dvs oF eegEineeSeSowenns ones cat | petted copy vena et reece Exam-style questions Seen ‘Suk setup a soe trader business called Care for Kids (CK) 20 years “valuation marks, eee uae aiigad ere erie in oo saa Siete ere” Sepa es ‘uiely Suki san independent person, The busines has grown rapidly Tis now a private Limite company that ons 45 nursery schools. Suki isslila major sharsholder and controle most decision. She wants to ‘opens school n another county with local aursry scheel business failed ccc. 5 Dein partnership a Ident two features of» private limited company a © utline two sdventages 1a Suki of inal setting up her business sea sole rader 4 Explain two advantages to CiK of forming jin venture with CCC. I) {© Doyeu think the owners of privat ited company should onvert tines publi imited company it wants expand? Say your answer @ Answers on page 1 (© Aimays consider both Sides fan issue withan evaluation ‘uestion Key objectives ‘Tha objectives of this chapor ae to rvie {© thenged for and importance of business objects {shout sitfrent business objectives 1 about the objectives of social enterprises the main internal and external stakeholder groups the objectives of siferet stakeholder groups haw these objectives might conflict with aah other, with examples 1 theaiferencesin the cojactves of private and public sector enterprises. Key definitions targets that tunes works omar Prott Total acome revenue oa bsiners ae cal cost Marke share Theprcenap fll markt salsld by one brand ar busines. Marka shore = SamEans S100 “ova etargriat” Asoc eterpie has scl objectnes a wel aan am to mata 3 9'fo eines back Business objectives Presse =] ——— _———___| Set Siteirome nae ces (oo =am.| |e | (Ee | epi | | Si —— | a ‘eo | z Sara = “Stale one ae ‘ean change over oes econ som ferme et zr Sa. Sete change | ‘Sehr ers an ee Sone ee | 1 Eakestinomsds eet | a frarein tet tering || Miata: Romane oe aa SES | [eee “moe cone ett pices | "= pubey especialy # markt wader] adder & Stoughton Limited © Karen Borington and Petr Stinson 2019 i Target your revision Stakeholder objectives (E>) res mE | ‘ny business has a numberof stakeholders. Conflicts between stakeholder g0ups and ther objectives might exit. mine nmi est Teenie eee pos Seay Stakeholder sogerainee ore ‘bles, sae fee mu {pb stecen ad moan sigh sales | iene es Seaplane Eon onerene ees tiie! et mer non Som Target your revision 1 There are several important benefits for a business of having clear objectives. ‘© Businesses may change thelr objectives overtime ‘Stakeholders canbe either interalor external to busines and they tae a close interest in its decisions and performance. ‘©All stakeholder groups will alo have objectives - and sometimes these night confit with those of the Business or ith ther stabeholdr. ‘Public sector businesses often have objectives different to those set by private sector businesses 1 State two benefits os business of having clearabecives. 2 Lstfour objectives private sector business might have, 2 List two internal stakeholders end two external stakeholders 3 business. Suggest ne way in which the objectives of stakeholder group con anit with those of business 5 Listtwo possible objectives ofa public sector business ‘Answers on page 145, a CambrigeI6CSE and 0 Level Busnes Sues Stucy and Revision Gul 9a to photocopy thie page Common errors mE | ror ‘wy tis wrong as Cnasng me tems shareholder owner ited companies ae uso the takehalee loka an shaceheder_| groups = but there ae several ter 0. Canc with hos ot managers’ | pel Managers want the Buses 9 be profile but cnaumers might ‘Sample questions and answers m= | Luis and Jez ae partners in a business that operates apace delivery service. There i increasing competition in this industry. The partes aimed ‘tabi up customer numbers and jst survive during the Fst two years ‘of busines. Now in its thd year of operation, the partners have dered tw set new objectives of growth and profit. They panto buy tree new motor vehicles to afer move deivery routes to customers. Te government encourages small businesesto expand but also allows the state owned parcel delivery business to opeate a publc service without making profit. 18 When asked to explain two factors/reases smoke sure that thoes Fealy ae diferent irom each other 1 plan two reason why Luis and Jez changed the objectives ofthe business ae expended, @ Student's answer ‘Reasons prota source of franca [K] Wendhebsnoos wn set p sindalnseinprtant Now ht thepartrershaecmpletad oo eaaih boesb thes ave so other aecthos Pr wth chris ce ‘the echo} hay neta tborow if thaprofi are ih ust 0) acon oo gewoh milan hatte bushes creas ol cach yo 6) Gromthnt baie to acon more pucess aga eran competes 9] “Tn grontmighthepthebuarese eens mare share (A) Teacher's comments ‘hie good anor. Te stuent makes rely good use of the evidence ‘rovided, Both ofthe new obectives ae refered to and understood. The Impact of setting each ofthese two objectives is explained ~ profit as 2 ‘source of finance and giomth leading (possibly) to increased marketshare. Falls. adder & Stoughton Limited © Karen Borinton an Peter Stinson 219 a Semple questions and answers 2 Do you think that clear objectives will make sure a business is sucessful dustify your ans, oy Student's answer “he octs ep honake declan as thay nowt they aren [ns aloreneompoyees wise ste tavert tovards theca targets and ly tobestzcastl (a) ovaerifoberbstesses tart fle sir producto secs thene ‘rao ee ly tobe ouceano fe) Py mene toreae prestaarach [lhe bnse carer oureoF contre a ernargconpetin e) oathoughcear opts reaper er ates ass thy make turealusheseocucceechJacfctarsuch ae conpetitars amp 20] Teacher's comments ‘Thi anower rey explains the benefits of setting objets. These benefits willy the business achieve success. However, the student recognises that "ccs cannat be Suaareed In pra Increasing competition wil tae fe more cfc forthe business nde may not make 2 prot. Full maths, 1 we start exploring froin ths national park al stakeholders wit benett ane there wil ben confit between them. sid Myriam, the Chie Executive of Sure. This publi limited company sane of he ‘mast proftale ol businescesin the country. ts employees are well paid and the government receives mich tax reverue rom SureO. Some stoma thik that hay pay too much for pera from Sure garages 3° Dene pdt timted company i Identity two of Suri's stakeholder groups, other than sharahoers a © Outne two objectives thatthe directors of # company could set ‘ther than making profs @ «Explain two benefits ta Sure of being proftable, @ {© Doyau agree that all stakeholders wil benefit and there wil be na cont Betaen them ia business starts exploring foroltina national park? Justiy your answer. oy Answers on page 165 a Cambridge IGCSE and O Love! Busines Studies Study and Reision Gude Case study: Understanding busines activity Walt's Wood Products (WWP) [WWD i bse in country 2. The busines a privat ited empany. Wal ors ove 80 pee eat of th hates withthe rest fhe shares owned byte ly members who ae not nveled a the diyo-day ring ofthe bine Wal wed 6 ‘bean employee of other wood rods busines, ‘aking window nd door When Wal nberted ome money fom bi grander be decided sare Is own business withthe hap of ees in is fly. He wat allen making wooden products nl had his own des of design for garden foie _WWP proces gudenFursitute made from wood, “The foriure salto 2 lng eal company Appendix 1: ema » {hat hae hope in al the main towne nd tes ‘aunty Z. WW buys is wood rom lea ores that predoceamtainable wood. Lnpored wood is lvl ta cheaper pie but Wal prefer to we Tncally produced wood The fcr we sled tmployes to make good gualy gudenfursiure Sd they ate pid sing pieces ha hee wages ‘epend on how many stems of entre they make ile i hinking of expanding WWP by cher “pening hit own shops sel thir fanieure or ‘ying 40 per ent share in jr eal company een eee he factory production process for making wooden furniture ech 18 Explain four possible reasons why Walt wanted to start his ‘own busines ater than work for someone else @ Student's answer Teacher's comments. alow hntoproue. wide wart tae cnn toss Heard ea make ais om doce, 2 Wt nated toapalthe profit the ueeanadea rf hen Wale culpa of ung pid age he wrk forsee ee sc nied Coke dependent and cose ov tospandhs be andmoney ‘dt hark for anoter compat a Wewared to corte Mean vorerghours instead aha todoky someone le 4 Nat hacked weed rods ink predue|ebandhehads dees atoning wooden furstarewtchastcrpuphsonnbustess nol Four cer points giving ‘esos forseting up hs cn bisness are writen, butt the lst two reasors are applied to this antest. Hence six mars fe ards, fll mars ‘nould nave been avarded ‘the Fist two points had been applied to this contre Header & Stoughton Lmtea © Karen Barrington and Pte Stimpson 2077 i Tied a Kanan ea AT Case study: Understanding business activity 'b- Explain one objective fr each of the following stakeholder groups in WP. Do you think there wil be conflicts between {these stakeholder groups? Jutity your answer 02) WNP employees ‘Sw customers © the government of country 2. Student's answer Teacher's comments. ‘WNP emplaeonarnteractedinthebaessbacauacthaywaneateepthar | (AMBER SURESH _phoandpertaps et avagetcasca the tuchesslsuccessland verses | explain each ofthe tosses ot neon gd eitar thot busrase may asa borei fom Stated groups in IreceasedproftTheicrssedproferaybe paidoreaeabonosoranincesceln | conte, peeeeameea ‘he conlusion discusses en cosarere nt an: qodvaue rita tha are made nde possible conf between restetybw npc Cantonese nant toy pricenorcheap arate | the difleen gouge and {hat renkcnnyar rote acy the garden They wantpeyarascorale | then ards ath a nal preety future thay rece ‘anlisin. The eorlison Thegowrnmant of curry Zwibelrterstedin NWP because ponies (Bipaeraets enplmnoncandenplyeonpaytaxonthareaangs tothe gnernmen: WH wil | Ful mas, ‘350 pay tan profs earneaThereforetkegnenment lant thebusness co emrcmcten ear eben the cot There may beer btneen thas alahler rope beat the ployee aan ier ages ana orlore he na ta hair pres chara {orth tuniure Honvr customers wat god qty uri at lw ces. The governor alla eatin ctonero to are no ingot Sushisinos tat dant gotarns ew aloware gh take tobe Fld fom ployee onder Soe ray avert wich WU Deatecastonersty charhiher pies hat mee be epctador doesnot Cacustomers the rach abot products tooncourag them toy tho. fenertmen alana th buoess tobe uccssflandpay hgh ages to tmplgeo and te hans to make ghpofe Go Ueremay be cof bebe foe oatonlors ba che employes at ead ley fre tat {farce or the quality and Ps suceeet aeting customer nad Chen thar ry not be my confit between each of thee statchole grupa Semen 2. 2 Explain ewo ways Walt can increase the added value of WP Opening ha aun shops to sll their furnture ‘Buying 240 percent sharein a major retail company that sells WUIP garden furniture Answers on page 157 @ Cambridge I5CSE ond 0 Level Business Stas Study and Revision ui Motivating employees Key objectives ‘The objocios of this chapor are to revise «© why people work and what motivation means © the bona of well-motivted warkores: labour produetiaty, ‘educed absenteeism and abour turner the concept of himan needs ~ Maslow hierarchy ey motivational theories ~Teylor and Herzberg financial rewards a a method of motivation, fr example, wage, slry bonus, commission, profi harng ‘© non-financial methods of matvation for example job enrichment Job rotation, earwarking, taining. opportunities fr promotion «howto recommend and justly appropriate methods of mativation a seen ereumstonces Key definitions Term Definition Mottin Thereason wy employees wont work are and work fiat or menses ‘wine ‘Apaymen oc werk wun ies a “arate Theamaut pista an apoyo one ear a werk Piece rele An aun pair neh it of ota onus ‘nadir smount a aman above asc aya reward for aoe wrk ‘Srsmision” Payment reaing the number sles made Protshrng Anse bery = ropertn the companys rots id “Job Satisfaction The enjoyment derived from fooling that you have done a seb “hbcoaion” vives employes swapping around ad sing each peiie a {Sik tor anytime ond then cangingaraund an. ‘Tabemichmen’” vier ooking ats and aden asks tha equre ore Sill snlorresponety. ‘amsoring”ivaves using groupe oo eke nd responses ther “The preces of mprovng an empleo skis “Theaéancemen' ofan employes nan erganisn fr taple ta igher anager ee Sead an Kosar om Hodder & Stoughton Lita © Karan Borringtn and Feter Stimpson 2017 a Rewards and jb stiatacton Motivating employees. © Paces 6-48 Peevsco | Trego a =. she rte fae, ‘heme wagon once Motivating employees wpe lord her PES gone ruta Letugdoup-pwncetemess | | ea! Rewards and job satisfaction (@) museum m= “eens eae Soar ert Fnnea Septet Eiger non financial Teese ee iets nese eben eneh Sotelo of te yar “Te wed mae att = Damoton econ ‘ers a a Cambridge I6CSE and O Level Business Sues Susy and Reson Gute Mosinating employe Target your revision mE] ‘© Welt-motivated employees result in many benefits to businesses, ‘© Several motivation theories attempt to analyse what leads to effective ‘employee mtivation and they make different conclusions. ‘¢lnancal methods of motivation include wages, salaries, bonuses, camnisson an profit sharing, ‘© Non-financial methods of motivation ilude job rotation, Job tnrchment, eamorking,vlning and promotion opportunities. aie 1 State three benefits toa business from having wall motivated employees rity outine Tylor’ views on motivation State three human needs, 5 explains by Maslow Watisthe diference between commission’ andproft sharing? Why dos teamworking often lead io high motivation evels? State twe method of motivation autale for 3 progucton employee. Siatetwe methods of motivation uilable fora menage. Answers on page 165 Common errors Ena] Error Write wrens ‘employees ema beyund a cetan lve of pay could be that eter factors ~ such a job Hersberglshgiee cars matte Azcordnge Herter, lene later oy woring contin, cmplayeesta wort hago ‘pervs can remove dasaistacton at work bt ey na rectly rnatateemplajees Oni the Matters can ths Sob tation ra farm oe -etog employees to oltre joa without hing am mare ennirment Ingependones or mare tory nfo enicmen Ths reques Employes tebe ger ‘Sample questions and answers Pens Al ABC sa Limited compary that operates a drink bottling factory Production employes are paid an hour wage rate. Works epetitive and ‘employees are tld not to work in teams But to concentrate on just doing thelr own obs. Senior managers are pda salary and havea profit-sharing scheme. ABC spends a great deal of money each year on recrulting new temployees. Output of filed bottles has fallen recently. Anew manager, Suz, was heard saying: ‘Paying emplayees more isnot the best way to Improve motivation, Tied gy oso on Heer & Stoughton inited © Karen Berington ad eter Stimpson 2019 a Sample questions and answers 1 Outline two probems resulting from poor employee motivation. [4] Student's answer Teacher's comments Froenore Employees wotware td tererkefectnayiOeyarence | Thi anane entifes Gro rotated Thy wo bother ower) problens of poor employee Petem wa Empoyeniluart oleae abusness tht does at mottatethem | tivation BUT falls to saturn il high ) Sea Mars: 2; And =2 in total 2 Explain two Financial methods that could be used to improve mmativaton of AB employes. Student's answer ‘ASC cours bras complexe fos eacodeacoran ek) Ths od rode elec nthanincethe onceao ov whch ze ‘ABC Tap The skcch shone bens cl mek (An '@ Youare encouraged to vie sketches or diagrams to support, youranswersi hey Sre-slovant Frouctn employes coulabsfforedaproft-shrr schame Xe the seer tanagor cf ABC a Teacher's comments ‘The frst method is well explained and applied to ABC. The second method ‘applied t ADL but eno explained ‘The student could have stated that a profit-sharing scheme encourages ‘employees ts be ivaved in the business and to work hard a hey wil ‘benefit am a share of annua ofits when the busines success, Marks 2; Ap; Amt = fn total legal to photocopy this page i Cambridge 10CSE and Level Business tues Std and Revision Gull Student's answer "Faturines omer nate font ther anplqees ore way gansta Tajorstolnkenpeyes pay taut THs scaled pecrata R]Me oust ‘hat ll onlyees are motiatad by moe one. The chance oberg tamer or ‘producny neem moenateemplyees (a) erateg dnt tinkshat more money mtvates only remowes Seasafcton Hetrougt tat ob eremment aa 208\iy ofmotating ‘pee [foreplay ahr Cem mre calengis andenponit es that wns stitcin () W employs aro very badly pal hy shoud get apy ra hey arewa ald ‘ened erchment neue te est mayto ratte them [EM he company ‘swos abut lng outpatient boot method of otto 20H ‘alia there mere intresting (67) Teacher's comments Seer Patelie a retail business that sells clothes. employs 15 shop employees and five office employees. One manager isin charge of al the employees ‘She insists that all employees are rained in one area ofthe business and should concenrate on this task. All employees are paid a wage based fn time rate. Patel's shop ha io recrut two new employees each month {oreplace those who leave The business owner, Dev, hasbeen tld by 2 hand to concentrate a improving pay and working condtians of his employees Betine tie rate @ ani two ways, other than time, which canbe used to determine employees pay a © Ditinetwe non-financial methods of motivation tha could ‘used to improve motivation af employees tw | Explain two reasons why motivated employees are important teers business @ © Doyau think that a business should focus on the motivators or Tygiene factors when tying ta improve emplayee motivation? sty your answer. @ Answers on page 15 étMetatiog employees adder & Stoughton Lista © Karan Boreingtn and Pater Simpson 201° Ez Organisation and management Key objectives “The abjactives of this chaper oreo revise: ‘© how to draw, interpret and understand organisation charts 1 imple hierrchcal structures: span of contol, levels a larch, “she rales and responsibilties of directors, managers, supervisors land other employee nan orgaiestion, anu inter-reiationships between them «the rte and functions of management planning, organisins, ‘oorsinang, commanding and conealling «© thelmpartance of delegation, Wust versus contro { eaturee ofthe main leadership sles autocratic, democratic and latsestoie ‘© Row te recommend anustiy an appropiate Leadership styeina Siven circumstance ‘6 hats trade unions andthe effect of employees beng union members Key definitions car ‘hele management in any geist, rom te highest te lowes Aol Ultra retro anayersisuperiarfther employes nears give ar ele rosona “Chan ocommand The structure nan organization hl allows isiractans abe pass down from snr ‘raragenen a ove vez mangement Savalcouicl The url aubordnats morn recy ander 3 ane naps wheled par earner or doen ones owthem te erty 38 Directors Managers who have direct respons ve peop begunsaton ae “ir managers who hav det ariel eve the rpoyesbowihem nthe “Stlimanoers Specialist wh provide suppor information and atatancs ine managers elanin {Geng sbordiats the authority perform pater es. safer sles chest dealing wt ape an aking deiane henna psiln democrat oases tore ‘atcrtcladerhip” The manager isin chargeal he busines, aes all deizars and execs orders ‘lowes, eacieadrip Alergy res re ecm ess ‘ater Makes ie troad ejects ofthe businger iawn eenployec, wh 3 Ito than dense organ ter on Work ‘rsdsanion Agroupotompoyees whe a Cambridge IOCSE and 0 Level Busnes Sues Study and Revision Guide Jr jnadapethor to encure rine oe protected iisilogal to photocopy tispage 7 Organisition nd management Organisational structure (@e) ratsnn EE] cera feet pr as ioe ere a opment iene ars Ea Sexi eect tii ‘shagher levels have more auhorny nee ‘Sea Management, leadership and trade unions (B) mstsw-ar Layee “vi jon ade union? — ena oereye ieee ee conn Saas aaa ee “eae eeuren bwotes ae i — email ‘teycngict ais ound “trade union ea Bit me ee membership titans os ae Hose Stoughton Lites © Karen Baringo and Feter Stimpson 2019 iad ay Ayan ve Sample qustons and answers Target your revision Prevseo | ‘The levels of management and division of responsibilities within an organisation are shown by its organisational structure ‘Wide spone of contra rest n short chains of eommand ‘© Managers in any organisation have important roles. ‘© Delegation frees up management tne to concentrate on important Issues such a key decision making 1 There are several contrasting leadership styles and each one might be appropriate in different circumstances, “6 Employees can often benert fom jring a trace union, oer 1 Slate three departments usually foundinthe & Suggest one posible benefitat delegation to ‘organisational structure ofa business rnoncmanagerent employees. 2 Sate two posible bereits ofa short chala of Nametwo leadership sys command {Suggest two possible benef of rade union 13 List three functions of management ‘membership to an employee Answers on page 166 Common errors me Ever Wiis wrens Delegation meons that emplayees ave | Dslegsin gs the autoryor power tuner managers employees Ina espa fereceons’ | tedoaab- he senior manage sha th inl essen The democratic eer syle ees | sped onthe ntare the business apd the suaton sin. There feral usneses nosigleanderahip that seat rel business ad al stuns manages are neesee Inanaper-rfewor managers might be need Sample questions and answers n= | Fur a large retal furniture shop. I has several departments incuding Hitchen furniture, lounge furniture and bedroom furniture, a wel as Imaketing and finance Furs organisation chat i Grete etn a a 2 ar Ovmnen 7 a eb De Spe mane SOS TBS BE OT BTS ‘wale Cambridge IGCSE and O Level Business Stutles Stay and Revision Gude Organisation and management Finn is the Managing Director. He believes that ‘making all decisions and telling emplayees to carty them out the best style of leadership for Furno. Tt worked well when we had the serious fire ast year - everyone now wnat to do becauce I tala them!” Inrecent months he has received more complaints fom customers that furniture styles are not changing to meetcurent customer tastes. 1 Explain tw features of Func organisation chat, 8 Student's answer Teacher's comments The chanofcormandwlongnFunCe(K]—terearesxininoFhearcwy (ap) | | This rower end two ‘Te igremale carmancatlonsow as ameeatgrhas pace traughmaty appepite Features of an lea a) ‘organstion cart ~ cain ’ tf eonmand and span of ‘The span of container Esch enon ot have much egstad apse ea oreo anor asthe areal cotoled ny marages (A anaree and anarow span of enti are both rity 2 Do,you agree that making al decisions an teling employees aie Viale Oar to cary them out the best style of leadership for 2 manager? ont about the span of “ustfy your answer. (6) contat is not applied — the suget shou have given examples ofthe Student's answer Span contr being two vthin urn’ strstr. Tis statener ang odors wa tang pg to cary tha Oe savtaeratleadership se (¥)Ths can hte soe ert hor tale ‘teeter nwchanafre Oulerocanbe gon achy anda enloees nt owe tadolanemergney Tere no tneforthentaskauestira orbelohedin {roca (A) Another leadership tle that amarager cud use nel edema whare a enpljeos areecaraged take port it dosnt wh Che ata Thscanbemotateg. Teng employes to cary outdacsionsis atte est om of eadersip. Teacher's comments ‘This ams starts wl but fis to argue why either autocratic or demarratc lesdetcip might be the best sje. The anewer des nt guin the secand mar for analysis Because ofthis ~ and there sno evaluation ‘or jadgement that supported by arguments The Final sentences could have ben easton s there had besn an argument to support for cerample, the democratic style might be best when a manager wants to gain employees’ views, fr example, which styles of product customers might prefer to purchase. ans: Kz: An: Ev0=3 in ota. Her &Stughton Linas © Karen Borigton and eter Stimpson 2019| a Saenpl qe Exam-style questions “TinCooperatstin mines in several countries. It has a clear cganisational strtire wth several evls at hierarchy. Jn isthe Managing Director He does ot delegate much authority fs junior ‘managers, There have been many accidents in Tinco's mines this year nas given instructions to mine managers that safely must be Improved Mine employees didnot receive» pyri ths year New ‘machinery was recently purchased for usein ome TinCo mines. These {hachines, once delivered were to bi far some ofthe min tunnels. Employees knew tis would bea problem but they were not asked for {het opinions before the machines were ordered 2 pane tovl ef erarehy wa Ident tw Benes to TinGo ot having a clear organisational ‘aructure a © Ditline two reasons why TinGo's employees might want to jin ‘trade union roy 4. Explain two management rates that Jin has in Tinto. i {© Would you recommend 2 manager fo use a democratic leaderahip style? Justify your answer. i ‘Answers on page 146 legato photocopy this page a ‘Cambridge GCSE and O Level Business Sues Study and Revision Gude Recruitment, selection an training of employees Key objectives ‘The objectives of this chaptor a “6 recruitment and selection method 1 iterences between internal rerultment an exteralrecrutment 3S themainstagesin recrutment and selection of employees how ta recommend and sty who fo employ in en cieumstances {the bene ad imitations of part-time emplayees and ull-ime employees ‘© the importance of training to a business and to employe {the bene ad liitations of induction raining, nthe) raining and off the-ob training |¢ the tterences between simissal and redundancy, with examples ‘on tounderstand stations nich ounsiing the workarce might benecesary, or example, sulomatan or educed demand fr products ‘¢how ta recommend and justify which employees to make redundant Ingven ercumstonces ‘© legal contals over employment contracts, unair dismissal

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