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SHANGHAI FOREIGN LANGUAGE SCHOOL

AFFILIATED TO SISU HANGZHOU
Mid-term Test

CANDIDATE
NAME

CLASS TOTAL
SCORE

BUSINESS November 2023

1 hour 30 minutes

You must answer on the question paper.

INSTRUCTIONS
● Write your name and class in the boxes at the top of the page.
● Do not use correction fluid.

INFORMATION
● The total mark for this paper is 50.
● The number of marks for each question is shown in brackets [ ].
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Section A -- Short Answer [15]

1 Define the term ‘commission’. [2]
2 Explain two advantages to a business of buying a franchise. [3]
3 Define the term ‘workforce planning’. [2]
4 Explain two disadvantages to a business of having CSR as a business
objective. [3]
5 Define the term ‘co-operatives’. [2]
6 Explain two purposes of a job description. [3]

Section B -- Essay [8]

7 Answer one question only

(a) Analyse two possible disadvantages to a business of using performance-related

pay to motivate its employees. [8]
or
(b) Analyse the benefits to a business of recruiting employees from outside the
business. [8]
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Section C--Data Response [27]

Fish and Chips (FC)

Min is a sole trader who is the owner and overall manager of FC. Min started the
business as a restaurant but FC has grown so that it now operates in the primary,
secondary and tertiary sectors. Min sees this as FC’s unique selling point (USP). Min
allocates costs and revenues to each section of the business. She then calculates the
profit margin for each section (see Table 3).
Table 3: Overview of FC

Min considers herself to be an excellent manager, having studied business at

university. She manages her employees using Herzberg’s motivation theory.
Min has had an objective of growth but she is now happy with the size of FC. She
intends to change the objective to profit maximisation.
8 Define the term ‘business objective’ . [2]
9 Briefly explain ‘Herzberg’s motivation theory’. [3]
10 Using Table 3, calculate the total annual profit for FC. [3]
11 Analyse two appropriate ways that could be used to measure the size of FC.
[8]
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12 Evaluate which stakeholders might be most affected by the change in FC’s

business objective from growth to profit maximisation. [11]