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UK GCSE 2010 : Foundation Tier, Business Studies Paper 1

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Centre Number 71 Candidate Number General Certificate of Secondary Education Paper 1 Foundation Tier [G1201] MONDAY 7 JUNE, MORNING G1201 Business Studies *G1201* 2010 TIME 1 hour 30 minutes. 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 three questions. This paper is accompanied by a case study. You must not use your own annotated copy of this case study. INFORMATION FOR CANDIDATES The total mark for this paper is 79, including a maximum of 4 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 QWC Total Marks 5531 Marks 1 (a) Define the following terms: Examiner Only Marks (i) Partnership _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (ii) Start-up capital _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (iii) Field research _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (iv) Job sharing _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (b) Score out the incorrect answer leaving the correct answer. (i) Fun and Games Ltd is in the private/public sector. (ii) Fun and Games Ltd has a tall/flat management structure. (iii) The shareholders in Fun and Games Ltd have limited/unlimited liability. [3] 5531 2 Remark (c) Show how Fun and Games Ltd uses any two factors of production. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] Refer to the organisation chart on Page 3 of the Case Study. (d) (i) What is the span of control for the Finance Director? __________________________________________________ [1] (ii) Suggest and explain two responsibilities the Finance Director might have. 1. ___________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ 2. ___________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] 5531 3 [Turn over (e) (i) Fun and Games Ltd carries out appraisal by interview. Suggest one other method of carrying out appraisal. __________________________________________________ [1] (ii) Explain two reasons why appraisal might be useful to the employees in Fun and Games Ltd. 1. ___________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] 2. ___________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] 5531 4 Examiner Only Marks Remark 2 (a) Suggest the most suitable method of recruitment that could be used for the Store Manager. Give one reason to support your answer. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (b) Outline two ways Fun and Games Ltd can ensure fairness in the selection of the new Store Manager. 1. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] 2. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] 5531 5 [Turn over (c) (i) Refer to the flow diagram on recruitment and selection on Page 4 of the Case Study. What is the main purpose of a job description? _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (ii) Suggest two items that might be included in a job description. 1. ___________________________________________________ 2. ________________________________________________ [2] (d) Explain two reasons why the employees in Fun and Games Ltd like to receive training. 1. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] 2. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] 5531 6 Examiner Only Marks Remark (e) (i) Identify from the case study one non-financial method of motivation used by Fun and Games Ltd. Examiner Only Marks Remark __________________________________________________ [1] (ii) Fun and Games Ltd is considering paying commission on sales as another method of motivation. Suggest one benefit and one drawback of this method for the employer. Benefit _______________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ Drawback ____________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] (f) (i) When should the new Store Manager receive a Contract of Employment? __________________________________________________ [1] (ii) List four items that should be included in a Contract of Employment. 1. ___________________________________________________ 2. ___________________________________________________ 3. ___________________________________________________ 4. ________________________________________________ [4] 5531 7 [Turn over 3 (a) (i) Use evidence from the Case Study to show how the business has grown organically. _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (ii) List two factors that would limit the growth of this business. 1. ________________________________________________ [1] 2. ________________________________________________ [1] (iii) Refer to Page 8 of the Case Study. Identify the type of integration being considered and explain one benefit to Fun and Games Ltd. Type _________________________________________________ Benefit _______________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [3] (b) If the merger goes ahead, Fun and Games Ltd will have to write a Business Plan. Discuss two sections that should be included in the plan. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5531 8 Examiner Only Marks Remark (c) (i) Refer to the advertisement on Page 7 of the Case Study. Identify and explain one sales promotion technique used by Fun and Games Ltd. Examiner Only Marks Remark _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [3] (ii) Name and explain another suitable method of sales promotion that Fun and Games Ltd could use. Method ______________________________________________ Explanation ___________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [3] (d) Why do Fun and Games Ltd use random sampling as its method of collecting information? _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] 5531 9 [Turn over (e) (i) Refer to the questionnaire results on Page 6, Charts 1 and 2, in the Case Study. Explain what the results tell you about Fun and Games Ltd. Examiner Only Marks Remark _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (ii) Refer to Chart 3 on Page 6 of the Case Study. Discuss how Fun and Games Ltd might use the information given by these results. _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] Quality of written communication 5531 10 Extra page if required Examiner Only Marks Remark ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 5531 11 [Turn over Extra page if required ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 5531 12 Examiner Only Marks Remark THIS IS THE END OF THE QUESTION PAPER 5531 13 T80488/3 General Certificate of Secondary Education Business Studies Case Study for use with Paper 1 Foundation Tier and Higher Tier [G1201] [G1203] MONDAY 7 JUNE, MORNING *G1201G1203* G1201G1203 2010 You must use this clean copy of the Case Study in the examination and not your own annotated copy. 5532.01 Fun and Games Ltd Mission statement: Founded in 1979, Fun and Games was set up as a partnership by Mr Bennett and his partner Mr Black. On setting up the business they both contributed equal amounts of start up capital and each received the same amount of profit. They formalised the set up of the business by drawing up a Deed of Partnership. The business was very popular as not only did it provide a wide range of toys and accessories but also specialised in costumes and fancy dress. The first five years saw a rapid growth in sales. By 1989 it became a private limited company and was then called Fun and Games Ltd. By the year 2000 it had opened three other branches throughout Northern Ireland. Extract from Memorandum/Articles of Association: Memorandum/Articles of Association Fun and Games Limited 15 Festive Road Puddlehill Northern Ireland Aim: To sell and distribute toys and costumes for children of all ages Capital value: 50 000 Liability clause: The shareholders of this company have limited liability Association clause: Mr Bennett and Mr Black wish to establish Fun and Games as a private limited company 5532.01 2 Fun and Games Ltd now employs just over 60 people and has a hierarchical structure. Mr Bennett and Mr Black are the only shareholders. Each shop (four in total) has a Store Manager who reports directly to the owners. They have a monthly Board Meeting and communicate daily via email. Each Manager has to prepare a monthly written report on activities. Organisation Chart for Fun and Games Ltd Mr Bennett Mr Black Branch 1 8 Floor Workers Branch 2 Clerical Assistant 10 Floor Workers Branch 3 2 Clerical Assistants 10 Floor Workers Branch 4 2 Clerical Assistants 8 Floor Workers Clerical Assistant Most employees are employed full-time but some are employed part-time and recently the owners have offered job sharing for employees who wish to avail of it. They pride themselves on paying their employees well and have recently redecorated the staff canteen and installed vending machines for staff use. Each member of staff is also entitled to 10% discount on non-sale items. All staff receive a Christmas bonus. Appraisal is carried out on a yearly basis. It takes the form of an interview and employees are given the opportunity to express their views and opinions. Currently one of their managers is moving to Australia and Fun and Games Ltd need to recruit a new manager. The company has decided to carry out a job analysis before compiling the job description, person specification and job advertisement. 5532.01 3 [Turn over A flow diagram to represent the recruitment and selection process at Fun and Games Ltd. Job Analysis Job Description and Person Specification Choose METHOD OF RECRUITMENT Job Centre or Private Recruitment Agency or Media Job Advertisement Choose METHOD OF SELECTION Application Form or Letter of Application and Curriculum Vitae (CV) Receive applications and short list Selection Tests Interview Select most suitable candidate Position offered CONTRACT OF EMPLOYMENT 5532.01 4 Marketing Fun and Games Ltd uses newspaper and radio to advertise its products and is currently developing a website. The management hope this will increase sales as they intend to include an online ordering service. Fun and Games Ltd carries out field research on a yearly basis. It prides itself on ensuring that the products it stocks are what the customer requires. It uses questionnaires to collect the information required and customers are stopped randomly and asked to answer the questions. Sample questions from recent questionnaire: 4. How often do you visit Fun and Games Ltd? Once per week Fortnightly Once per month Once every few months Other (please specify) 5. ________________ What is your main reason for the visit? To browse To buy toys To buy fancy dress Reputation Other (please specify) 6. ________________ Which products do you buy most often? Educational toys Pre-school toys Activity toys Electric toys Computers Fancy dress costume 7. Have you seen/heard our advertisements? Yes No 8. How would you rate the following: (5 being excellent and 1 poor) Variety of products Location Staff Prices 9. Would you recommend us to a friend? Yes No 5532.01 5 [Turn over Sample results from questionnaire: Question 8 Variety of Products satisfactory good very good excellent % 50 40 30 20 10 0 Rating Chart 1 Question 8 Prices excellent very good good satisfactory Chart 2 Question 6 Which products do you buy most often? Types of products 30 20 % 10 0 educational pre-school activity electric computer fancy dress Products Chart 3 5532.01 6 Products The product range is vast, and toys to suit all age ranges are stocked. The company uses a range of sales promotion techniques as well as regular advertising to increase sales. A range of pricing strategy is also used. The shops stock a vast range of fancy dress costumes and from time to time employ casual staff to dress up in the costumes they have theme days throughout the year. Newspaper advertisement 5532.01 7 [Turn over Future plans: Mr Bennett and Mr Black are pleased with the success of their business and the organic growth that has taken place. They are currently considering an option to buy over another toy shop that has two branches in Dublin and at present are considering their financial options. T80490/3 5532.01 8

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