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UK GCSE 2010 : Higher Tier, Business Studies Paper 1

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Centre Number 71 Candidate Number General Certificate of Secondary Education Paper 1 Higher Tier [G1203] G1203 Business Studies *G1203* 2010 MONDAY 7 JUNE, MORNING 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 5530 Marks 1 (a) Name the type of business organisation which Fun and Games Ltd is, and explain one advantage and one disadvantage of this business type. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] (b) Fun and Games Ltd operates in the private sector. Explain the importance of this sector to the Northern Ireland economy. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5530 2 Examiner Only Marks Remark (c) Evaluate the type of management structure used by Fun and Games Ltd. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (d) List two methods of communication used by Fun and Games Ltd and discuss the importance of effective communication for the business. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] 5530 3 [Turn over (e) Fun and Games Ltd is developing a website. Analyse the implications of this for the business. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] 5530 4 Examiner Only Marks Remark 2 (a) Fun and Games Ltd carries out appraisal by interview. Suggest one other method of carrying out appraisal. Examiner Only Marks Remark ______________________________________________________ [1] (b) Explain two reasons why appraisal might be useful to the management of Fun and Games Ltd. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (c) Refer to Page 4 of the Case Study. Distinguish between a job description and a person specification. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5530 5 [Turn over (d) Outline one responsibility of an employer during the selection process. Examiner Only Marks _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (e) Discuss how The Fair Employment Act might impact on the recruitment of staff for Fun and Games Ltd. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (f) Using examples from the Case Study, explain how Fun and Games Ltd uses non-financial methods of motivation. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5530 6 Remark (g) Distinguish between on-the-job and off-the-job training, showing one way in which each is suitable for Fun and Games Ltd. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] 5530 7 [Turn over 3 Fun and Games Ltd advertises in the newspaper. The ASA control advertising. (a) (i) What does ASA stand for? __________________________________________________ [1] (ii) Outline two roles/functions of the ASA. _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] (b) Discuss two factors that might influence the price of products at Fun and Games Ltd. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] 5530 8 Examiner Only Marks Remark (c) Explain the method of sampling used by Fun and Games Ltd. Advise the company about one other method they could use, and discuss it fully. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] Refer to Charts 1 to 3 on Page 6 of the Case Study. (d) What do the results tell you about Fun and Games Ltd? Discuss how the management might use the information. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] 5530 9 [Turn over (e) Fun and Games Ltd is considering a merger. Discuss two possible sources of external finance that would be available to Fun and Games Ltd indicating which would be the most suitable. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] Quality of written communication 5530 10 Extra page if required Examiner Only Marks Remark ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 5530 11 [Turn over Extra page if required Examiner Only Marks ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 5530 12 Remark THIS IS THE END OF THE QUESTION PAPER 5530 13 T80483/2 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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