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UK GCSE 2010 : Higher Tier, Business Studies Paper 2

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Centre Number 71 Candidate Number General Certificate of Secondary Education Paper 2 Higher Tier [G1204] TUESDAY 15 JUNE, MORNING G1204 Business Studies *G1204* 2010 TIME 2 hours. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number in the spaces provided at the top of this page. Write your answers in the spaces provided in this question paper. There should be enough space for your answers. If you do require more space, you may complete your answers on the extra lined pages at the back of this booklet. Answer all four questions. INFORMATION FOR CANDIDATES The total mark for this paper is 105, including a maximum of 5 marks for quality of written communication. Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. For Examiner s use only Question Number 1 2 3 4 QWC Total Marks 5534 Marks 1 Lotions and Potions is a chemist shop in Newry. Michael and Donna work there as fully-qualified pharmacists while Mary, Ella and Molly assist on the shop counters. (a) Mary, Ella and Molly all work flexitime. Define the term flexitime and explain one disadvantage which it may have for the owner (employer) of Lotions and Potions. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (b) Commission is used as a financial method of motivation for some members of staff in Lotions and Potions. Define commission and name one member of staff for whom it would be suitable. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] 5534 2 Examiner Only Marks Remark (c) Recommend one other financial method of motivation which would be suitable for all members of staff in Lotions and Potions. Explain how your recommended method would be used. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (d) Name one non-financial method of motivation which would be suitable for all members of staff in Lotions and Potions. ______________________________________________________ [1] (e) The owner of Lotions and Potions is aware of legal controls which prevent discrimination at work. Explain two provisions of the Disability Discrimination Act. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5534 3 [Turn over (f) Describe two provisions of the Sex Discrimination Order which would affect the owner of Lotions and Potions. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (g) There are a number of chemist shops in Newry and Lotions and Potions is eager to beat the competition. Advise the owner of three suitable methods of sales promotion for his business, giving details of the methods you have chosen. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] 5534 4 Examiner Only Marks Remark 2 Adam owns and manages The Mada Co Ltd in Ballymena. His firm retails and fits carpets throughout Ireland. Examiner Only Marks Remark (a) One of Adam s aims is to grow and to expand the business. One possible way to expand the business would be to market abroad. Explain three drawbacks of doing so for The Mada Co Ltd. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] (b) Give details of two other methods of internal (organic) growth which would be suitable for The Mada Co Ltd. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5534 5 [Turn over (c) Describe one social issue which should be considered before The Mada Co Ltd is expanded. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (d) Explain two factors which might limit the growth of The Mada Co Ltd and advise Adam how he might overcome these limitations. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] (e) Other than Adam, name two stakeholders who would have a financial interest in The Mada Co Ltd. _________________________________________________________ ______________________________________________________ [2] 5534 6 Examiner Only Marks Remark (f) The Mada Co Ltd has a large stock of one particular carpet which it is finding difficult to sell. Name three strategies you would use to improve sales of this carpet. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (g) It has been suggested to Adam that he should join the Confederation of British Industry (CBI). Explain one of the purposes of this organisation. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] 5534 7 [Turn over 3 Examiner Only The Safety-Net Insurance Company has its main office in Portadown. (a) Name and explain the type of production in which The Safety-Net Insurance Company operates. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (b) Describe the present trend in Northern Ireland across the different types of production. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5534 8 Marks Remark (c) Give two possible reasons for the trend you have described above. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (d) Technology has had a significant impact on the work of The Safety-Net Insurance Company. Explain two advantages which the company may have gained from technology. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5534 9 [Turn over (e) The Safety-Net Insurance Company is hoping to attain a recognised quality standard. Evaluate two likely benefits to the company of attaining a quality standard. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (f) The Safety-Net Insurance Company has considered moving its main office from Portadown to the city centre in Belfast. The company finally decided against the move. Explain three business reasons why the company decided not to move. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] 5534 10 Examiner Only Marks Remark 4 Brian Barlow has a small jewellery shop Sparklers in Dungannon. He makes some of the jewellery he sells. He does not own the premises. Examiner Only Marks Remark (a) Explain to Brian two reasons why it is important to maintain a good level of working capital in his business. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (b) Brian wishes to invest additional capital in Sparklers. Give details of two possible reasons why he wishes to do this. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5534 11 [Turn over (c) Name three pieces of information Brian would need in order to calculate the breakeven point for Sparklers. 1. _______________________________________________________ 2. _______________________________________________________ 3. ____________________________________________________ [3] Trading and Profit and Loss Account of Sparklers for the year ended 31 December 2009 Sales 29000 Less: Opening Stock 3040 Add Purchases 7960 11000 Less Closing Stock 1400 Cost of Goods Sold 9600 Gross Profit 19400 Less Expenses 12400 Net Profit 7000 (d) Study the above account and advise Brian of two ways by which he might improve the Net Profit of Sparklers. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5534 12 Examiner Only Marks Remark (e) In the space below calculate the gross profit percentage for Sparklers using the figures given in the Trading and Profit and Loss Account. Examiner Only Marks Remark [3] (f) In the space below calculate the stock turnover rate for Sparklers using the figures given in the Trading and Profit and Loss Account. [3] (g) Complete the box below with one item of each which is likely to occur in Sparklers. Fixed Cost Variable Cost Current Liability Current Asset [4] Quality of written communication 5534 13 [Turn over Extra page if required Examiner Only Marks ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 5534 14 Remark Extra page if required Examiner Only Marks Remark ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 5534 15 [Turn over Extra page if required Examiner Only Marks ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 5534 16 Remark THIS IS THE END OF THE QUESTION PAPER 5534 17 5534

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