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UK GCSE 2008 : Foundation Tier, Business Studies Paper 2

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Centre Number 71 Candidate Number General Certificate of Secondary Education 2008 Paper 2 Foundation Tier G1202 Business Studies [G1202] FRIDAY 30 MAY, MORNING 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 G122F8 3576 Marks 1 Special Autos Ltd owns a large garage in Lisburn. It sells new and used vehicles as well as operating a repair service. The organisation is proud of its excellent reputation, and has a fully trained and highly motivated workforce. (a) The employees in Special Autos Ltd are fully trained. State two reasons why training is important from the employees point of view. 1. _______________________________________________________ _________________________________________________________ _________________________________________________________ _______________________________________________________ [2] 2. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (b) Special Autos Ltd uses on-the-job training for its junior mechanics. Explain on-the-job training. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (c) Special Autos Ltd has decided to recruit another sales person and needs to draw up a Job Description for the new employee. What is the main purpose of a Job Description? _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] G122F8 3576 2 Examiner Only Marks Remark (d) Identify three details which should be included in a Job Description. Examiner Only Marks Remark 1. _______________________________________________________ 2. _______________________________________________________ 3. ____________________________________________________ [3] (e) Special Autos Ltd put the following advertisement in the newspaper. Special Autos Ltd Require a SALESMAN Experience not essential It is the policy of the company to employ British or Irish people only No disabled people need apply Pay structure: Men 12 per hour Women 9 per hour Name three laws which are broken by the advertisement, giving reasons in each case. 1. _______________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ 2. _______________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ G122F8 3576 3 [Turn over Examiner Only 3. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] (f) Special Autos Ltd has introduced Profit Sharing and Quality Circles as two new methods of motivation. Explain these two methods, giving one advantage of each method. Profit Sharing _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] Quality Circles _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] G122F8 3576 4 Marks Remark (g) The female employees in Special Autos Ltd are considering going on strike over the company s pay structure. Why might their strike action be unfair to some people? Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] G122F8 3576 5 [Turn over 2 Examiner Only The South Star Hotel in Keady opened five years ago and is owned by three brothers, Fred, Lenny and Tony South. Fred and Lenny work full-time in the hotel while Tony plays no active part in the hotel but works as an accountant in his own offices in Armagh. Marks (a) Complete the following sentences: (i) The type of ownership in the South Star Hotel is a______________________ (ii) The maximum number of people in this type of ownership can be___________ (iii) Tony is a ____________ business _________________________ in the (iv) The South Star Hotel is in the ________________________________sector (v) The South Star Hotel s type of production is ________________________ G122F8 3576 [5] 6 Remark (b) When the South Star Hotel first opened, its main aim was survival. Name two other aims which the hotel is likely to have now, and state why its aims may have changed. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] The South Star Hotel is considering merging with another small hotel in Keady (c) Three of the following statements are true about the above situation. Tick the boxes beside the three true statements. You must tick only three boxes. This is external growth This is internal growth This is a takeover This is horizontal integration This is vertical integration This is lateral integration This is an amalgamation [3] G122F8 3576 7 [Turn over (d) (i) Explain two advantages which the South Star Hotel would gain if the hotels merged. _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] (ii) Some of the local people in Keady are opposed to the merger. State one reason why they may be unhappy about it. _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (e) The South brothers need to have a Business Plan for the new venture. Name two components which should be included in a Business Plan for an hotel. 1. _______________________________________________________ 2. ____________________________________________________ [2] G122F8 3576 8 Examiner Only Marks Remark (f) State two reasons why a Business Plan is necessary and name one organisation which would help them to write it. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] G122F8 3576 9 [Turn over 3 Premier plc is a large engineering company based in the sea-port of Larne. The company specialises in the manufacture of heavy machines which it sells throughout the world. (a) What does plc indicate about the company? _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (b) Give details of the most likely reason why Premier plc based its factory in Larne. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (c) Name two other factors which would influence the location of any industry. _________________________________________________________ ______________________________________________________ [2] (d) Discuss three social and environmental issues which Premier plc would have had to consider when deciding on a site for its factory. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ G122F8 3576 10 Examiner Only Marks Remark Examiner Only _________________________________________________________ Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] (e) Premier plc operates the Batch Production Method. Give details of two disadvantages of this method for the company. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] G122F8 3576 11 [Turn over (f) Describe two reasons why Premier plc sells its products throughout the world. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (g) Premier plc has to deliver a large, heavy machine to a customer in Italy. Advise the company of the best method of transport to use, giving two reasons for your choice of method. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] G122F8 3576 12 Examiner Only Marks Remark 4 Catherine owns and runs The News Stand which is a small shop in Strabane. She sells newspapers, magazines and stationery. Examiner Only Marks Remark (a) Explain what start-up capital is and name one likely source of Catherine s start-up capital. She did not use either a mortgage or hire purchase. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (b) Catherine is going to build an extension to The News Stand and hopes to apply for a mortgage. Give details of one advantage and one disadvantage of a mortgage from Catherine s point of view. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] G122F8 3576 13 [Turn over (c) Catherine will need to buy new equipment for the extension and needs advice about buying it on hire purchase. Advise Catherine whether hire purchase is suitable for her use, stating one of its advantages and one of its disadvantages. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] (d) The four main sections of a Balance Sheet are shown below. Give one example of each in the spaces provided. SECTION EXAMPLE Current Assets Fixed Assets Current Liabilities Long Term Liabilities [4] The following figures were extracted from the accounts of The News Stand for the year ended 31 December 2007: Sales Gross Profit Net Profit Capital G122F8 3576 52,500 17,850 10,800 90,000 14 Examiner Only Marks Remark (e) Using the space below, calculate the Gross Profit Percentage for The News Stand for the year. Examiner Only Marks Remark [3] (f) Using the space below, calculate the Return on Capital Employed for The News Stand for the year. [3] (g) In your opinion is the figure for the Return on Capital Employed for The News Stand satisfactory? Give one reason for your answer. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] Quality of written communication G122F8 3576 15 [Turn over Extra page if required Examiner Only Marks ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G122F8 3576 16 Remark Extra page if required Examiner Only Marks ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G122F8 3576 17 Remark THIS IS THE END OF THE QUESTION PAPER G122F8 3576 18 SP (NF) T57178/1

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