REVISION FOR

TOPICAL TEST 1
PREPARED BY: MMIM. ALM. FREDERICK TAN
Case Study Annabelle is a sole trader. She produces handmade, individually designed greetings
cards using job production. High quality cards are important to Annabelle’s customers.
Annabelle has 3 part-time employees who are paid an hourly wage rate. Annabelle is
thinking of changing from an hourly wage rate to a piece rate system, where the
employees are paid depending on the quantity of products they make. Annabelle thinks
this will help to improve the motivation of her workforce. During festivals and
celebrations she receives a higher number of orders.
 CASE STUDY QUESTIONS:
• Define the term of “motivation”? [2 marks]
• Identify TWO (2) disadvantages to Annabelle of using job production. [2 marks]
• Identify and explain TWO (2) advantages to Annabelle of having part-time
employees. [4 marks]
• Identify and explain TWO (2) non-financial methods of motivation which
Annabelle could use. [4 marks]
• Do you think Annabelle should change the payment method she uses for her
employees? Justify your answer. [6 marks]
Case Study T&Y is a large business providing floor cleaning services to other businesses. It has
many loyal employees. When a worker does leave, new recruits are trained using on-the-
job training. T&Y is located in an area with a high level of unemployment. T&Y is
experiencing falling demand and plans to increase promotion. The manager of T&Y is
thinking about relocating the business to main city, which is 50km away. Main city has
many expanding industrial areas. The manager is worried about the effect of relocation
on some stakeholder groups.
 CASE STUDY QUESTIONS:

• What is meant by “stakeholder group”? [2 marks]

• What is meant by “on-the-job training?” [2 marks]
• Identify and explain ONE (1) advantage and ONE (1) disadvantage to T&Y of using on-
the-job training. [4 marks]
• Identify and explain TWO (2) ways T&Y could promote its services. [6 marks]
• Do you think T&Y should relocate its business? Justify your answer. [6 marks]
Case Study Frederica is an entrepreneur. Two years ago she left her job as a fashion designer at a
multinational company. She started up BBB, a women’s sportswear clothing business.
BBB targets a market segment of high income consumers. BBB’s products are sold in 3
retail shops and also through its website. Frederica said: ‘I saw a gap in the market and
took the risk. Obtaining the finance I needed from the bank was not easy. I enjoy making
decisions such as using leaflets to promote the clothes.’ BBB’s revenue target for next
year is $500 000.

Fashionwear for Sport

B B
B
B B B
“Be a Star!”
 CASE STUDY QUESTIONS:
• What is meant by “entrepreneur”? [2 marks]
• Identify TWO (2) reasons of why obtaining finance may not be easy for a new business.
[2 marks]
• Identify and explain TWO (2) possible reasons why Frederica decided to start up her
own business. [4 marks]
• Identify and explain TWO (2) reasons why segmenting the market might help BBB. [6
marks]
• Do you think that using leaflets is the best way for Frederica to promote her products?
Justify your answer. [6 marks]
Case Study ABC Insurance is a medium sized company. The company provides a range of insurance
products to customers around the world. It operates in a highly competitive market.
Many insurance businesses are now using the Internet as a way to sell their products.
The management of ABC Insurance has been looking at its current organisational
structure. They think the span of control and chain of command need to be changed.

ABC Insurance
Think about safety, think
about ABC Insurance!
 CASE STUDY QUESTIONS:
• Define the term of “organisation structure”. [2 marks]
• Define the term of “chain of command”. [2 marks]
• Explain the difference between chain of command and span of control. [4 marks]
• Which is more important wider span of control or taller chain of command? Justify your answer.
[2 marks]
• Do you think delegation is one of the success factors in organization? Justify your answer. [6
marks]
• Identify and explain TWO (2) non-financial method that ABC Insurance could motivate its
employees? [4 marks]
Essay Case Study Mr. Frederick decides to start a small business but he knows
that he is unsure to sell the food via online or at school and
local church. He knows that selling food via online; such as
through social media and mobile application, that he could
make a good money out of it. On the other hand, if he sells
at school and local church, the profit will be reduced, it
shows a good cause and being a business teacher who walks
the talk. He has started to teach IGCSE Enterprise at his
school, and it enables him and his fellow students to
collaborate to perform a mini enterprise project.
He had a done market survey and found out of 70
respondents, the majority had voted for sell it via online
(67%) while selling at school and church only constitutes of
33% from the respondents.
 CASE STUDY QUESTIONS:
• Define the term of “social enterprise”. [2 marks] Construct your answers in an essay form &
• Define the term of “motivation”. [2 marks] submit at Schoology, before class ends.

• If you were Mr. Frederick, how would you motivate students in participating and contributing in the
enterprise mini project? [6 marks]
• Before making a choice in starting up his business, what are the steps needed for Mr. Frederick’s business
plan? Justify your answers. [14 marks]
• “Partnership is to be able to reduce the risk and burden of a business.” Do you agree with the statement?
Justify your answer. [2 marks]
• There are 20 students who are interested in Mr. Frederick’s mini enterprise project, how would you advise
Mr. Frederick in terms of constructing an organisation structure?
• Take note: (Finance, Marketing, Operation, and HR & PR departments in his structure)
• Construct the organisation structure with appropriate explanations. [14 marks]