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PRIDE INTERNATIONAL SCHOOL MYANMAR

(Academic Year 2019-2020)

CANDIDATE
NAME
CLASS AND ID
SECTION NUMBER
___________________________________________________________________
Year 11 September 2020
BUSINESS STUDIES 1 hour 30 minutes
Paper 1

Candidates answer on the Question Paper.

No Additional Materials are required
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READ THESE INSTRUCTIONS FIRST
Write your candidate number and name in the spaces at the top of this page.
Write in dark blue or black pen.
You may use an HB pencil for any diagrams, graphs or rough
working.
Do not use staples, paper clips, and glue or correction fluid. 1
DO NOT WRITE IN ANY BARCODES.

Answer all questions. 2

The businesses described in this question paper are entirely
fictitious.
At the end of the examination, fasten all your work securely 3
together.
The number of marks is given in brackets [ ] at the end of each
4
question
or part question.
Total
The total number of marks for this paper is 80

This document consists of 9 printed pages and 1 blank page

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1. 1. GKK makes plastic bottles for a range of products from food to chemicals. GKK buys its raw
materials from a low-cost country. GKK’s organisational structure is wide with a short chain of
command which allows for delegation. The Government plans to introduce new legal controls to
protect the environment. The Operations manager said: ‘The Government might achieve one of
its objectives but how does it affect GKK? This is a competitive market so prices are important.’
He wants to improve efficiency and plans to use lean production.

(a) What is meant by ‘chain of command’

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(b) Identify two Government economic objectives

Objective 1: .....................................................................................................................................

Objective 2: ................................................................................................................................ [2]

(c) Identify and explain two benefits to GKK of increasing efficiency.(c)

Benefit 1...........................................................................................................................................

Explanation: ....................................................................................................................................

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Benefit 2: .........................................................................................................................................

Explanation: ....................................................................................................................................

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(d) Identify and explain two ways in which new legal controls to protect the environment might
affect GKK.

Way 1: .............................................................................................................................................
Explanation: .....................................................................................................................................
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Way 2: ............................................................................................................................................
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Explanation: ....................................................................................................................................
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(e) Explain one lean production technique. Recommend whether GKK should introduce this
technique. Justify your answer.
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2. Mabel wants to set up her own hairdressing business. She will need to build good customer
relationships. She has done some secondary market research to find out possible demand
and what methods of promotion to use. She has decided to buy her inventory (stock) from a
wholesaler. Mabel is now looking for the right location for her business. She thinks that location
will be more important than price charged to the success of her business.
(a) What is meant by ‘secondary market research’?

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(b) Identify two ways that a business could build good customer relationships.

Way 1: .............................................................................................................................................
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Way 2: .............................................................................................................................................
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(c) Identify and explain two methods of promotion (other than promotional pricing) that Mabel
might use.
Method 1: .........................................................................................................................................
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Explanation: .....................................................................................................................................
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Method 2: .........................................................................................................................................
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Explanation: .....................................................................................................................................
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(d) Identify and explain two possible disadvantages to Mabel of buying her inventory from a
wholesaler.
Disadvantage 1................................................................................................................................
Explanation: ....................................................................................................................................
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Disadvantage 2................................................................................................................................
Explanation: ....................................................................................................................................
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(e) Do you think that the right location is more important than the prices she charges to the success
of Mabel’s business? Justify your answer
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3. George has worked in a small flower shop for 10 years. He does not like the autocratic
leadership style of his manager and wants to leave. He will decide whether to start up his own
business or buy a Bunches RUs franchise. The franchise would cost him $5000 but Bunches
RUs would offer training and support. For either option, George will need both finance and to
recruit 2 part-time employees. George knows building customer relationships will be important
to the success of his business.

(a) What is meant by ‘autocratic leadership style’

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(b)Identify two possible sources of finance George could use.

Source 1: .........................................................................................................................................
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Source 2: .........................................................................................................................................
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(c) Identify and explain two reasons why building good customer relationships might be
important to the success of George’s business.

Reason 1: ........................................................................................................................................
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Explanation: ....................................................................................................................................
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Reason 2: ........................................................................................................................................
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Explanation: ....................................................................................................................................
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(d) Identify and explain one advantage and one disadvantage to George’s business of having part-
time employees.
Advantage........................................................................................................................................
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Explanation: ....................................................................................................................................
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Disadvantage...................................................................................................................................
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Explanation: ………………………………………………………........................................................
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(e)Do you think George should buy a BunchesRUs franchise? Justify your answer

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4. ASZ is a public limited company. It makes a range of garden tools such as digging forks and
wheelbarrows using production methods which have not changed for many years. ASZ sells
all of 2 its products to a wholesaler. The Marketing Director is considering changing the
channel of distribution by selling products directly to retailers. The Operations Director has
prepared some revenue and cost data to help make decisions (see Table 1). ASZ is planning
to introduce new technology which will change production methods.

Table1:Revenue and cost data for Product H for last 6 months

Revenue $35000
Fixed costs $20000
Total variable costs X
Total costs $38000
Profit/(loss) Y
Number of units 1000
produced

(a) What is meant by ‘public limited company’

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(b) Calculate the value of X and Y.

X...................................................................................................................................................
Y................................................................................................................................................[2]

(c) Identify and explain two ways in which ASZ could use cost data to help make decisions.

Way 1..............................................................................................................................................
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Explanation: .....................................................................................................................................
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Way 2: .............................................................................................................................................
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Explanation: .....................................................................................................................................
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(d) Identify and explain two ways in which new technology could change production methods at
ASZ.
Way 1: ..........................................................................................................................................................

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Explanation:.......................................................................................................................................
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Way 2...............................................................................................................................................
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Explanation:.....................................................................................................................................
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(e) Do you think ASZ should change its channel of distribution? Justify your answer
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End of paper (Total for question: 80 marks)

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BLANK PAGE

©Pride ISM 2020 Year11/BS/Mock test /19-20 [Turn over