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UK GCSE 2006 : Higher Tier, Business Studies Paper 2

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Centre Number 71 Candidate Number General Certificate of Secondary Education 2006 Paper 2 Higher Tier G1204 Business Studies [G1204] THURSDAY 1 JUNE, AFTERNOON 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 G122H6 374 Marks 1 Examiner Only Kim is the Human Resources Manager in Blackston Ltd a factory in Ballygawley. Blackston Ltd encourages new ideas and believes it is very important that the workforce is highly-motivated. (a) Blackston Ltd is planning to introduce two new work patterns into the company. Explain how the following work: Home Working _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] Flexitime _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (b) The Human Resources Manager has to be aware of all laws relating to employment. Give three details of the Sex Discrimination (NI) Order, 1976 which would apply to Blackston Ltd. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] G122H6 374 2 Marks Remark (c) State the role of the Equality Commission and describe one way in which it fulfils that role. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (d) Blackston Ltd offers fringe benefits as a method of motivation to one group of employees in the company. Using the table below, identify one group for whom this method is appropriate and name two fringe benefits you feel would suit that group. Group Fringe Benefits [1] G122H6 374 [2] 3 [Turn over Most of the employees in Blackston Ltd belong to a Trade Union and the owners belong to the CBI. (e) Describe two ways in which a Trade Union can help its members. 1. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] 2. _______________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (f) What do the initials CBI stand for? ______________________________________________________ [1] (g) As a result of a dispute with management, some of the employees wish to take industrial action. Some people believe that industrial action is morally unfair. Name one type of industrial action and give one reason why it may be considered unfair. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] G122H6 374 4 Examiner Only Marks Remark (h) The Labour Relations Agency tries to resolve disputes through its arbitration service. Explain the arbitration process. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] G122H6 374 5 [Turn over 2 Examiner Only Among the businesses in Banbridge are two supermarkets, three fashion stores, two video shops, a bookshop, a factory which manufactures furniture, and a garage which does motor repairs and sells petrol. (a) Write the name of the most appropriate pricing policy for each business in the table below, using the details given. Business Pricing Policy One of the video shops wants to charge the same price as the other shop The garage wants to cover its costs and make a small percentage profit One of the fashion stores has introduced a highly sought after range of jeans which no other shop has A new supermarket is opening in the town and is trying to gain a share of the market One of the video shops is trying to close down the other one The supermarkets keep cutting their prices of bread [1] [1] [1] [1] [1] [1] The manager of one of the video shops has studied the market for its products by carrying out market segmentation. (b) Explain market segmentation and name two segments in a market. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] G122H6 374 6 Marks Remark (c) One of the fashion stores frequently advertises in newspapers. Name the organisation which monitors advertising in newspapers and describe its function. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (d) The bookshop in Banbridge has increased its business by selling internationally via the Internet. State why selling via the Internet is suitable for this particular business. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (e) Give details of two problems which you think the bookshop might face by selling to foreign countries. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] G122H6 374 7 [Turn over (f) The furniture factory has realised that one of its sofas is at the decline stage of its Product Life Cycle. There is a large number of the sofas still in stock. What would you advise the factory to do? Give your reasons. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] G122H6 374 8 Examiner Only Marks Remark 3 Examiner Only First Rate Foods Ltd is located in Cookstown and is a small-to-mediumsized company. The company prepares meals to freeze and sell in shops throughout Northern Ireland. It has also been asked to cater at the official opening of a newly built hospital. Marks Remark (a) First Rate Foods Ltd is very aware of the importance of safety in the workplace. Name the law which gives details of the responsibilities employers have and explain one of those responsibilities. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (b) First Rate Foods Ltd is a small-to-medium-sized company (SME). Discuss why SMEs are very important to the Northern Ireland economy. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] G122H6 374 9 [Turn over (c) The new hospital has been built by a public-private partnership. Define a public-private partnership and give one of its advantages. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] There is another business called Classy Foods in Cookstown which does exactly the same type of work as First Rate Foods Ltd. The two businesses plan to join together to form one single company called First Class Foods Ltd . (d) Two of the following statements are true about the above situation. Select and tick the boxes beside the two true statements. You must tick only two boxes. This is external growth This is a takeover This is a merger This is a conglomerate This is internal growth [2] G122H6 374 10 Examiner Only Marks Remark (e) First Class Foods Ltd gets assistance from the bank although it does not need to borrow money. Name three other forms of assistance which the bank can give a business such as First Class Foods Ltd. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (f) One of the advantages which First Class Foods Ltd will gain by becoming larger is that it will have technical economies of scale. Explain how the business would benefit from technical economies of scale. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] G122H6 374 11 [Turn over (g) Some of the owners wish to update the technology in First Class Foods Ltd while some others are not convinced that they should spend money in this way. What would you advise them to do? To support your view, give details of two major impacts which updated technology may have on the company s production. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] G122H6 374 12 Examiner Only Marks Remark Examiner Only 4 Jack is a sole trader who runs a small furniture shop in Coleraine. However Jack feels that his business would be more successful if he had additional capital. His business adviser has also suggested that he might form a private limited company with some members of his family. Marks Remark (a) Explain one disadvantage for Jack of being a sole trader which might be overcome by forming a private limited company. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (b) Jack decides to continue as a sole trader. Advise him on three internal sources of finance which would raise the additional capital he requires. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] G122H6 374 13 [Turn over (c) Factoring is an external source of capital which Jack has heard about. Explain how factoring works and why it may not be suitable for Jack s circumstances. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] An accountant had produced the following figures for Jack s shop for the year ending 31 December 2005: Sales Cost of goods sold Average Stock Gross Profit Net Profit 87,500 30,600 15,200 56,900 35,400 The rate of Stock Turnover for 2004 was 3. (d) Using the space below, calculate the Net Profit Percentage for Jack s shop for the year. [3] G122H6 374 14 Examiner Only Marks Remark (e) Using the space below, calculate the Stock Turnover Rate for Jack s shop for the year. Examiner Only Marks Remark [3] (f) Comment on the Stock Turnover Rate for 2005 for Jack s shop and say what you would advise Jack to do about it. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] Quality of written communication G122H6 374 15 [Turn over Extra page if required ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G122H6 374 16 Examiner Only Marks Remark Extra page if required ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G122H6 374 17 Examiner Only Marks Remark THIS IS THE END OF THE QUESTION PAPER G122H6 374 18 SP (NF) T16030/2

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