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UK GCSE 2008 : Higher Tier, Business Studies Paper 2

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Centre Number 71 Candidate Number General Certificate of Secondary Education 2008 Paper 2 Higher Tier G1204 Business Studies [G1204] 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 G122H8 3577 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) Team-working is important in Special Autos Ltd. Explain how team-working would operate in this particular business, and state one benefit of team-working for an employee. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (b) Each employee in Special Autos Ltd has a Contract of Employment. What is the main purpose of a Contract of Employment and when must it be given to an employee? _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] G122H8 3577 2 Examiner Only Marks Remark (c) Special Autos Ltd believes that it is essential to have a well-trained staff. State two reasons why training is important from an employer s point of view. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (d) The senior mechanic in Special Autos Ltd is sent to Birmingham each year on a training course. Identify the method of training described here and explain why it is the most appropriate method for the senior mechanic. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] G122H8 3577 3 [Turn over (e) Special Autos Ltd uses a range of financial methods of motivation. Name and describe the most appropriate method for the sales staff, giving one advantage for the company of this method. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (f) Consultation is used in Special Autos Ltd as a non-financial method of motivation. Explain one advantage of this method for employees. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] G122H8 3577 4 Examiner Only Marks Remark (g) Recommend the most appropriate method of appraisal for the junior mechanics in Special Autos Ltd. Give two arguments which you would use to persuade the junior mechanics that appraisal has benefits for them. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] G122H8 3577 5 [Turn over 2 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. (a) Name the type of partner which Tony is, and state one right and one limitation of this type of partner. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (b) Apart from the three owners, name three possible stakeholders in The South Star Hotel and give details of their interest in the business. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] G122H8 3577 6 Examiner Only Marks Remark Examiner Only When the South Star Hotel first opened, its main aim was different from its main aim today. Marks Remark (c) Give one example of an aim the hotel might have had when it first opened, and one example of an aim it might have today. Suggest two reasons why its aims have changed. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] (d) The South Star Hotel is considering merging with another small hotel in Keady. Name and describe this type of integration. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] G122H8 3577 7 [Turn over (e) Some of the local people in Keady are opposed to the merger. State one reason why they may be unhappy about it. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (f) Name the principal law which governs mergers and give details of two purposes of this law. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [5] G122H8 3577 8 Examiner Only Marks Remark 3 Premier plc is a large engineering company based in the sea-port of Larne. The company manufactures heavy machines as special orders and sells them throughout the world. Examiner Only Marks Remark (a) Complete the table for Premier plc: Type of Business Ownership Method of Production Sector of Business Type of Production [4] (b) Give details of the most likely reason why Premier plc based its factory in Larne. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] G122H8 3577 9 [Turn over (c) Discuss two social or environmental issues which Premier plc would have to consider in its production. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (d) Health and safety is a major issue in Premier plc. Give details of two responsibilities which the Health and Safety (NI) Order, 1978 places on this company for the protection of its employees. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] G122H8 3577 10 Examiner Only Marks Remark (e) 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 one reason. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (f) Premier plc invests heavily in product research and is constantly developing new products to keep ahead of the competition in Europe. Discuss three major influences on Premier plc s product development. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [6] G122H8 3577 11 [Turn over 4 Examiner Only Catherine owns and runs The News Stand which is a small shop in Strabane. She sells newspapers, magazines and stationery. Marks (a) 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 Stock Capital Current Assets Current Liabilities 52,500 17,900 10,500 10,000 90,000 50,000 40,000 (b) Using the space below, calculate, to two decimal places, the Current Working Capital Ratio for The News Stand. [3] G122H8 3577 12 Remark (c) Using the space below, calculate the Acid Test Ratio for The News Stand. Examiner Only Marks Remark [3] (d) Comment on the result of your Acid Test Ratio calculation, giving details of the information it gives you about Catherine s business. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (e) Catherine needs to buy new equipment for the shop but is unsure whether to buy it on hire purchase or to lease it. Advise her on the better method for her use, giving one reason. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] G122H8 3577 13 [Turn over (f) Catherine needs advice about a Cash Flow Forecast. Explain two purposes of this document and also explain to Catherine the importance of maintaining an adequate cash flow. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [8] Quality of written communication G122H8 3577 14 Extra page if required Examiner Only Marks Remark ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G122H8 3577 15 [Turn over Extra page if required Examiner Only Marks ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G122H8 3577 16 Remark Extra page if required Examiner Only Marks ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G122H8 3577 17 Remark THIS IS THE END OF THE QUESTION PAPER G122H8 3577 18 SP (NF) T55319

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