lt Write your name here

Surname other names

Teacher's name Form class

Edexcel

Business
Year 10
Term I Examination

Colombo lnternational School

Monday, 25th November 2019
Time: 1 Hour 30 Minutes
You do not need any other materials. Total Marks

lnstructions
I Use black ink or ball-point pen.
I fiU in the boxes at the top of this page with your narne, teacher's name and form class.

I Answer all questions.

I Answer the questions in the spaces provided
-there may be mare spdce thon you need.
I Calculators may be used.
I You are advised to show all your working.

lnformation
I rt',E totrt mark for this paper is 80
Q fhe marks for each question are shown in brackets'
- use this as a guide os to how much time to spend on each question.

Advice :

I Read each question carefully before you start to answer it.

0 Try to answer every question.
I Check your answers if you have time at the end.
v Section A
I nvestigating Small Businesses

The Dollhouse Beautv Lounge

The Dollhouse Beauty Lounge is a hairdressing salon located in Dubai. lt also offers a range
of beauty

treatments to customers. These treatments include massage, waxing and manicures. The salon

currentty employs eight staff and has recently decided to expand to offer treatments for male

customers. This includes haircuts and hot towel shaves. Four new employees will be recruited
as a

result of the expansion.

Reem Abou Samra is a business woman at the top of her game with the ownership of fashion, beauty
Eber
and lifestyle licenses under her belt. Some of those names include the celebrity hair salon, Jose

Laloge, Versace Kids, Samra jewelry amongst many. Samra is also a well-connected socialite known

for her lavish events and for being seen among the notable and elite members of the UAE society'
She also participates in a lot of charity work and uses her position to give back to organisations such

as the Rashid Centre for Disabled children with personal visits to the centre and treatment days for
the children at the salon.

(Source : https://khaleeimadame.com/intervie\ /llets-qet-know-ladv-entrepreneur-reem-abou-samra/)

 Answer ALL questions. write your answers in the spaces provided.
Some questions must be answered with a cross in a box (tr).lf you change your mind about an
answer, put a line through the box (EI) and then mark your new answer with a cross (El).

Question 01

a)
i. A sole trader has? (1)
f] u*ited tiabitity
LJ Unlimited liability
I tnd.p.ndent liability
f Srpr"re liability

ii. Which of the following is not an advantage of a sole trader? (1)

fI Uore capitalcan be raised
fl rlexibility
I roo Zo profit can enjoy
I financial information is not published

iii. Main objective of a small business start-up in their first five years of trading should be: (1)
f] Profit maximization
f] Customer satisfaction
fl survivat
, fl Expansion

b) Define the term public corporation. (1)

c) State one fund raising method for social enterprise. (1)

 d) state the business sector in which Dollhouse Beauty
Lounge belongs to. (1)

e) outline one benefit to Dollhouse beauty lounge of sales growth.

l2'l

f) Explain one reason for the decline in the manufacturing

sector businesses in developed countries.
(3)

g) Explain one reason for privatization.

(3)

3
h) Analyze two impacts of specialization to Dollhouse Beauty Lounge. (6)

(Total for Question 1 = 20 marks)

 Question 02

a) Outline one benefit of charity work that might lead to success of the Dollhouse Beauty Lounge. (2)

b) Explain one benefit of having limited liability to a business (3)

c) Analyse two benefits of employee satisfaction that might lead to the success of Dollhouse Beauty

Lounge. (6)

5
d) Samra is looking for an opportunity to expand her salon. Currently she's considering two
options
for expansion.

Option 1: Convert to a limited liability company.

Option 2: Obtain the franchise license from British Salon Tony & Guy and become a franchisee'

cclpet-
chnr rld select. (9)
Justify which one of these options Samraa should

(Total for Questio n 2 = 20 marks)

TOTAL FOR SECTION A = 40 MARKS

6
 Section B
lnvestigating Large Businesses

to produce toys
LEGO is a multinational toy company. lt has been in existence since 1932, and strives
and the term "Lego"
of the highest possible quality; their motto is "Only the best is good enough,"
been run by the Kirk'
roughly translates to "play well" from Danish (The LEGO Group). lt has
Kristiansen in its entire eighty-four-year history. LEGO products are on
sale in more than 130

countries. The LEGO Club has 2.7 million members worldwide.

The company's famous LEGO bricks have been played with by generations
of children' Some of the

latest developments include video gaming, pre-school products, play themes' bricks' licensed
19 percent
products, and educational-based products for children. ln 2015, the LEGO Group achieved
across the world. The main
sales growth which enabled it to reach approximately 100 million children
competitors for Lego include Hasbro and Mattel.

as Denmark, Switzerland,
Lego Group's production sites were located in such high-cost countries such
and the United States. Lego Group, the Danish toymaker, has said it will shift
production from
staff lay-offs. Lego
Denmark and the United States to lower-cost countries, resulting in about 1.,200
Europe or China and that
said that it was considering moving all or part of its production to Eastern
the restructuring could affect all of its production sites'

7
Question 03
a)
i. Which one of the following is most likely to be found in a deed of partnership? (1)

tr uo* many goods to sell

E Nrr., of suppliers
f rh" price of goods to be sold
fl Ho* profits are to be shared

ii. Which of the following is not a reason of business failure? (1)

I ruo market for the product

I crowth
n Un"*p"cted expenditure
X overtrading

iii. Which could be a possible advantage to a country that hosts a multinational. (1)

f] Transfer of technology
E Environmentaldamage
I Exploitation of labour
I uct of responsibility

:'
b) Define the term franchisee. (1)

c) State one feature of a MNC. (1)

 d) State one financial objective of Lego.

(21
e) Outline one method Lego could use to measure the success of their business'

(3)
f) Explain one advantage to a business of converting to a public limited company'

(3)
Explain one reason as to why the process 'going public' is expensive.

9
a

warehouse in Billundcan, shifts 560

h) The eight robots and 15 automatic cranes that work in the LEGO

crates of bricks in and out every hour.'

Analyze two possible benefits to Lego of using capital intensive production techniques when
(5)
manufacturing toYs'

10
 Question 04

a) Define the term prospectus.

(1)

"Only the best is good enough,,,

Outline one benefit to Lego of setting clear objectives.

(21

c) outline one reason why Lego has decided to relocate their production
facilities. l2l

d) Explain one impact of technology on the manufacture

of toys. (3)

lt
e) 'Lego group is always looking to find the right location to relocate their factories.'

Evaluate the factors Lego Group would have to take into account when making decisions about
where to relocate new factories. you should use the information provided as well as your own
knowledge of business. {12)

1a
TOTAL FOR SECTION B = 40 MARKS
TOTAL FOR THE PAPER = 80 MARKS

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