Horizon College International

Second Term Examination, March, 2022

Surname First Names

Subject Paper code/ Unit code

Business - Paper 1 4BS1/01
Total marks for Paper Duration Class

80 1 Hour 30 Minutes Year 10

Instructions
 Use black ball-point pen.
 Write your Surname, First Name and the Class in the space given clearly.
 Check the total number of pages in the Paper.
 Read each question carefully before you start to answer it
 Write your answers neatly in good English.
 Keep an eye on the time.
 Check your answers if you have time at the end.
Information
 The total mark for this paper is 80.
 The total number of pages in this paper is 13
 Answer all questions.
 The marks for each question are shown in brackets

Marks Marks
Question/Section
Allotted Obtained
Q1 20
Q2 20
Q3 20
Q4 20

Total 80
Percentage %
Grade
Second Term Examination, March 2023 Year 10 Business 4BS1/01

For each question, choose an answer A, B, C or D and put a cross in the box. Mark only one answer for
each question. If you change your mind, put a line through the box � and mark your new answer with a
cross.
1.
Gary set up fruity, a fresh juice bar in his home town. It makes fresh fruit drinks. Gary had a well-paid job
with a large food and drinks company but he wanted to create his own business. He left his job 6 months
ago to set up fruity. Gary wants to provide people with a healthy alternative to the mass produced drinks
that are available in most shops. Businesses supply goods and services to consumers. Gary is willing to work
hard to make fruity a success. He has lots of ideas for new drinks. He has been making the drinks at his house
and selling them at a market stall. He does not have enough space to produce a higher output on his own. The
first drinks fruity produced were made from just 2 types of fruit to keep costs down. The business has been
profitable. Gary now wants to expand the business rapidly and he needs to raise $100 000 to open a factory. He
will need to recruit production workers. Gary wants to produce a new type of drink. He has carried out a
market research to help him decide which fruit drink to produce and what price to charge. Gary plans to
open more fruit drink market stalls in busy areas of the city. He needs to recruit a manager to operate all of
fruity drink stalls. This person will need to be reliable and able to make their own decisions. Gary may have
to pay to train the new manager.

1) Which of the following is not a type of training?

A on the job training

B Induction training

C Job rotation

D off the job training

(Total for Question 1 = 1 Mark)

2) Which one of the following is a reason why a sole trader would become a private limited company?

A The business will have unlimited liability

B Increased ability to raise finance

C Shareholders are liable for all debts

D The business can keep financial records confidential

(Total for Question 2 = 1 Mark)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01

3) Which one of the following would be a non-financial objective for Gary?

A Generating wealth

B Personal satisfaction

C Maximizing profit

D Regular income

(Total for Question 3 = 1 Mark)

4) Which one of the following is an example of changes that could be made to the marketing mix of a small
business?

A Employing additional marketing staff

B Producing a marketing budget

C Selling the product online

D Training new employees

(Total for Question 4 = 1 Mark)

5) Which one of the following would be a reason to set up a new business as a franchise?

A A franchisee can buy supplies from any supplier

B The wage rates for all the franchises are the same

C Franchisees can make all their own decisions

D A franchise has a lower risk of failure

(Total for Question 5 = 1 Mark)

6) Which two of the following are advantages for an entrepreneur of starting a business as a sole trader?

A Less risky than other types of business structure

B Limited liability means losses can be minimized

C Owner has control of decision making

D Business continues existence

(Total for Question 6 = 1 Mark)

(Total for part (a) = 6 Marks)
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Second Term Examination, March 2023 Year 10 Business 4BS1/01

a) Define the term ‘market analysis’. (1)

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b) Define the term ‘mass market’. (1)

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c) Explain one reason why businesses consider importance of reliability of market research data. (3)
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d) Define the term ‘quantitative data’. (1)

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Gary had a well-paid job with a large food and drinks company but he wanted to create his own business.

e) Outline one advantage of starting own business to Gary. (2)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01

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f) Analyse the importance of social media in collecting market research data. (6)

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(Total for Question 1 = 20 marks)

2.

a) Define the term ‘fringe benefits’ (1)

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b) Define the term ‘trade union’. (1)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01

c) Explain one advantage of using piece rate as the method of pay for a business. (3)

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The business has been profitable. Gary now wants to expand the business rapidly.
d) State two reasons how Gary’s business became more profitable? (2)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01
e) Outline two advantages of being a sole trader to Gary. (4)

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a) Gary needs to recruit a manager to operate all of fruity drink stalls. This person will need to be
reliable and able to make their own decisions. He is considering following two options,

Option 1 – Internal Recruitment

Option 2 – External Recruitment

b) Justify which one of these two options Gary should use. (9)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01
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(Total for Question 2 = 20 marks)

f) Complete Maslow’s hierarchy of needs using only the information below, by mentioning the name of
appropriate type in the diagram. (5)

g) Define the term motivation. (1)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01
h) Define the term hygiene factors. (1)

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i) State one non-financial method of motivating staff at Gary’s business (1)

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j) Explain one reason why a business produces a person specification when it wants to recruit new
employees (3)

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k) Explain one advantage for a business of using job rotation. (3)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01

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l) Analyse the benefits for Gary of using induction training. (6)

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(Total for Question 3 = 20 marks)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01

3.
a) Define the term chain of command.
(1)
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b) Explain two features of an organizational structure in a business. (6)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01

c) Outline two methods of primary market research data that Gary could use. (4)

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d) Gary now wants to expand the business rapidly and he needs to raise $100 000 to open a factory.
It is considering following two options,

Option 1 – A new bank loan, repayable over 10 years.

Option 2 – Use personal savings

Justify which one of these two options Gary should use. (9)

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Second Term Examination, March 2023 Year 10 Business 4BS1/01
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(Total for Question 4 = 20 marks)

End of Paper
Total for Paper = 80 Marks

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