VDN is a private limited company. One of VDN’s objectives is to be ethical. VDN produces office products including pens and paperclips. All raw materials are imported. The Managing Director 1 plans to introduce new machinery to help lower average costs. This will require training for VDN’s 380 employees. The Managing Director also wants to introduce Kaizen into the factory. Define ‘private limited company’. (a) … … … … [2] Define ‘average cost’. (b) … … … … [2] Outline two ways VDN could be ethical when producing its products. (c) Way 1: … … … … Way 2: … … … … [4] Explain one advantage and one disadvantage to VDN of introducing Kaizen. (d) Advantage: … … Explanation: … … … … Disadvantage: … … Explanation: … … … … [6] Do you think off-the-job training is the best method for a large business to use when introducing new machinery? Justify your answer. (e) … … … … … … … … … … … … [6]

1(a) Define ‘private limited company’ Award 2 marks for a full definition. Award 1 mark for a partial definition. A business owned by shareholders, but they cannot sell shares to the public. [2] OR A business owned by shareholders, but they can only sell shares to friends or family. [2] OR Often a small to medium-sized business owned by shareholders who have limited liability. The company cannot sell its shares to the general public. [2] Partial definition e.g. have limited liability [1] OR can sell shares [1] 2 1(b) Define ‘average cost’. Award 2 marks for a full definition. Award 1 mark for a partial definition. Total cost of production divided by total output [2] OR The cost of producing a single unit of output [2] Partial definition e.g. cost per unit [1] 2 1(c) Outline two ways VDN could be ethical when producing its products. Award 1 mark for each relevant way. Award 1 mark for each relevant reference to this business. Points might include: • Pay fair wages [k] to its 380 employees [app] • Source environmentally friendly products / buy local / recycle / reduce waste [k] in its factory [app] • Not use child labour / not buy from producers using child labour [k] when importing materials [app] • Pay suppliers a fair price [k] for pens/paper clips [app] • Pay suppliers on time [k] Other appropriate responses should also be credited. 4 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Factory • Office equipment or examples such as pens/paperclips • Import all its raw materials • 380 employees • Kaizen • Average cost Other appropriate examples in context can still be credited. Do not award answers which outline legal factors such as pay minimum wage. 1(d) Explain one advantage and one disadvantage to VDN of introducing Kaizen. Award 1 mark for identification of each relevant advantage/disadvantage (max 2). Award 1 mark for each relevant reference made to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include: Advantages: • Increase productivity [k] which helps lower average costs [app] and could improve its profit margin [an] • Work in progress is reduced [k] reducing inventory costs [an] • Can reduce amount of space needed for production [k] decreasing rent costs [an] • Improved layout / combining of jobs [k] in the factory [app] can release some employees to do other jobs [an] • Help motivate employees (as involved in change) [k] leading to less absenteeism / higher productivity [an] of its 380 employees [app] Disadvantages: • Only designed to produce small changes / no radical changes [k] so will not gain any significant increase in output [an] of office equipment [app] • Over time it is difficult to identify (extra) improvements [k] which can demotivate employees [an] • Workers may need training [k] which increases costs [an] • Not all employees may want/able to implement Kaizen [k] • Meetings take time [k] which could decrease output [an] Other appropriate responses should also be credited. 6 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Factory • Office equipment or examples such as pens/ paperclips • 380 employees • Reduce average costs • Ethical (objective) Other appropriate examples in context can still be credited. 1(e) Do you think off-the-job training is the best method for a large business to use when introducing new machinery? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award 2 marks for a justified decision as to whether off-the-job training is the best method of training for a large business to use when introducing new machinery. Points might include: Off-the-job • Can focus on training [k] so less likely to make mistakes [an] • Access to up-to-date knowledge [k] • May have to pay more / high cost of specialists [k] • Business may not have the skills to train its workers [k] On-the-job [k] • Still work while training so output / production does not stop [an] • Cheaper than off-the-job [an] • Workers might not have the skills to train others (as its new machinery) [an] • Employees learn way the business want them to / can control what is taught [an] so standards are easier to maintain [an] • Slows down work of experienced worker [an] 6 This is a general question so there are no marks for application. To gain both evaluation marks response must clearly relate to a large business. 1(e) Other appropriate responses should also be credited. Justification might include: Off-the-job is helpful as workers can focus on training [k] so less likely to make mistakes [an]. This is likely to be better than on-the-job training [k] even though some output is still produced [an]. This is because existing employees may not have any knowledge of the new equipment so off-the- job training is worth the extra cost [eval] to make sure workers use machinery correctly and as a result avoid costly mistakes. [eval]

PJA make fashion clothing for 16-25 year olds. Many of its competitors are multinational companies. PJA produce new products every 3 weeks. All PJA’s products are made in a local factory because 2 of import quotas. The Managing Director is reviewing PJA’s financial statements using ratio analysis. An extract is shown in Table 2.1. Table 2.1 Extract from PJA’s financial statements for 2020 7400 Revenue ($m) 3330 Gross profit ($m) 1100 Profit ($m) 1.5 Current ratio 8% Return on Capital Employed (ROCE) Define ‘import quota’. (a) … … … [2] Calculate PJA’s gross profit margin. Show your working. (b) … … … [2] Outline one benefit and one limitation to PJA of developing new products. (c) Benefit: … … … … Limitation: … … … … [4] Explain two ways PJA’s managers can use ratio analysis. (d) Way 1: … … Explanation: … … … … Way 2: … … Explanation: … … … … [6] Do you think multinational companies always benefit the countries they operate in? Justify your answer. (e) … … … … … … … … … … … … [6]

2(a) Define ‘import quota’. Award 2 marks for a full definition. Award 1 mark for a partial definition. Limit on the number of goods into a country [2] Partial definition e.g. limit on number of imports [1] 2 2(b) Calculate PJA’s gross profit margin. Show your working. Correct answer 45(%) [2] Correct method but incorrect answer [1] e.g. gross profit / revenue ×100 OR 3330 / 7400 *100 2 0.45 alone = 0 2(c) Outline one benefit and one limitation to PJA of developing new products. Award 1 mark for each relevant benefit/limitation. Award 1 mark for each relevant reference to this business. Points might include: Benefit: • Attract new customers / sales / growth [k] for its clothes [app] • Need to replace products in decline / keep up with changing customer tastes [k] of 16–25-year-olds [app] • Retain customers / to maintain market share [k] • Spread risk / attract new markets / have other products to rely on for sales [k] • Charge a higher price [k] • Improve reputation [k] • Can create a unique selling point [k] Limitations: • No guarantee customers will like the new product [k] as fashion changes [app] • Competitors might introduce rival products / reduce prices [k] as most of competitors are multinational companies [app] • High cost [k] • Production issues, e.g. is there sufficient capacity [k] within factory [app] • Having access to suitable materials [k] as trying to avoid import quotas [app] Other appropriate responses should also be credited. 4 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Correct use of data from table 2.1 • Clothes • Fashion • 16–25-year-olds / young customers • Local • Factory • Multinational companies • 3 weeks / 21 days. Other appropriate examples in context can still be credited. 2(d) Explain two ways PJA’s managers can use ratio analysis. Award 1 mark for identification of each relevant way (max 2). Award 1 mark for each relevant reference made to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include: • Able to see trends over time [k] for its clothing [app] to see where / whether performance has improved or not [an] • See trends between competitors [k] such as whether revenue is higher than $7400m [app] to assess how / whether they are as competitive as they think [an] • Able to measure financial performance / profitability / success [k] as if last year ROCE was lower than 8% [app] profitability has improved [an] • Help make investment/expansion decisions [k] such as developing new products [app] • Check / manage liquidity OR working capital [k] as if last year the current ratio was higher than 1.5 [app] then they know liquidity has got worse [an] Other appropriate responses should also be credited. 6 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Correct use of data from table 2.1 • Clothes • Fashion • 16-25-year-olds / young customers • Local or factory • Multinational companies • Develop new products. Other appropriate examples in context can be credited. 2(e) Do you think multinational companies always benefit the countries they operate in? Justify your answer. Award up to 2 marks for identification of relevant issues. Award up to 2 marks for relevant development of points. Award up to 2 marks for justified decision as to whether multinational companies always benefit the countries, they operate in. Points might include: • Creates jobs / provides income [k] so improving living standards [an] • Technical knowhow increased [k] which could help improve production methods / efficiency / output [an] • Orders for local suppliers [k] increasing local incomes / GDP [an] • Improve international reputation of country [k] • Increased investment / infrastructure development in country [k] • Companies pay taxes [k] which increases government income [an] • Competition for local businesses [k] leading to lower demand / lower prices [an] which could lead to the closure of local businesses [an] • Profits are often repatriated [k] limiting the countries growth [an] • Offer higher wages [k] reducing supply of workers for local business [an] • Use up limited resources [k] so there is less available for other local businesses [an] • Jobs created may be unskilled [k] Other appropriate responses should also be credited. Justification might include: Companies pay taxes [k] which increases government income [an]. However, reduced sales for local businesses [k] may lead to lower revenue [an]. A multinational always benefits a country to some extent, because of the money invested. [eval] The overall impact depends upon the effect on local businesses. [eval] 6 This is a general question so there are no marks for application. Analysis should focus on the impact on the country.

Nadia started her successful hairdressing business 4 years ago. Maintaining quality has always been important to Nadia. She said: ‘I started with no experience of business plans, recruitment, 2 cash flow or profit. I did not understand how economic issues such as inflation could affect a business. Now I have 5 hairdressing shops and 20 employees. Last year I made a profit of $100000.’ Nadia is planning to expand her business. One way she could do this is by selling franchises. Define ‘business plan’. (a) … … … … [2] Identify two stages in the recruitment process. (b) Stage 1: … … Stage 2: … … [2] Outline one advantage and one disadvantage to Nadia’s business of selling franchises to expand. (c) Advantage: … … … … Disadvantage: … … … … [4] Explain two possible effects of an increase in the rate of inflation on Nadia’s business. (d) Effect 1: … … … … … … Effect 2: … … … … … … [6] Do you think making a profit is more important for a growing business than managing cash flow? Justify your answer. (e) … … … … … … … … … … … … [6]

2(a) Define ‘business plan’. Award 2 marks for a full definition. Award 1 mark for a partial definition. A document containing the business aims/objectives and important details about the operations, finance and owners of a business [2] OR A detailed written document outlining the purpose and aim of a business which is often used to persuade lenders or investors to finance a business proposal [2] OR States aims and/or objectives and shows how business plans to achieve them [2] Partial definition e.g. A document stating the aims of the business [1] 2 For one mark must have idea of outlines business objectives/goals. The second mark can outline why it is used, information it contains or other relevant development. 2(b) Identify two stages in the recruitment process. Award 1 mark per stage. Two from: • Job analysis / identify a vacancy • Job description • Person/job specification • Advertising (the vacancy) • Application forms sent out / received • Shortlisting/screening • Interview/testing • Selection / job offer Other appropriate responses should also be credited. 4 Only award the first two responses given. Note: Answer must be from the business viewpoint not the applicant. To award, candidates must identify, and not simply describe the stages. 2(c) Outline one advantage and one disadvantage to Nadia’s business of selling franchises to expand. Award 1 mark for each relevant advantage/disadvantage. Award 1 mark for each relevant reference to this business. Points might include: • Receives a fee to use her brand name / franchisee has to buy a licence / franchisee has to pay start-up costs [k] of her hairdressing business [app] • Expansion is much faster [k] so will not take as long to open the next 5 shops [app] • Nadia will receive a share of franchisee’s profits/royalties [k] helping increase her $100 000 profit [app] • Franchisees will have local knowledge [k] which is helpful as business only started 4 years ago [app] • Management of outlet is responsibility of franchisee [k] • All products sold must be obtained from franchisor [k] Disadvantages: • Poor management of one franchise could damage whole business reputation [k] as maintaining quality is important [app] • The franchisee keeps some/most of the profits from the outlet [k] • Has to offer franchisees help and advice / training [k] which may take time as when she started she had no experience [app] Other appropriate responses should also be credited. 4 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Hairdressing/shop • Maintain quality (is important) • $100 000 (profit) • 5 (shops) • 20 (employees) • 4 years ago • (No experience of) business plans • Inflation Other appropriate examples in context can still be credited. Do not award answers which focus on whether she should expand or benefits of growth in general e.g. more well known, increase sales. 2(d) Explain two possible effects of an increase in the rate of inflation on Nadia’s business. Award 1 mark for identification of each relevant effect (max 2). Award 1 mark for each relevant reference made to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include: • Lower demand / fewer sales (as people have less money to spend) [k] for hairdressing [app] reducing revenue [an] • Workers may demand higher wages [k] in her 5 shops [app] increasing labour costs [an] • May want to delay plans to expand [k] such as selling franchises [app] • May need to increase prices [k] [an] leading to fewer customers [an] Other appropriate responses should also be credited. 6 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Hairdressing/shops • Maintain quality (is important) • $100 000 • 5 (shops) • 20 employees • 4 years ago • (No experience of) Business plans • Selling franchises / looking to expand Other appropriate examples in context can still be credited. Do not award points such as less disposable income as this does not identify the effect on the business. 2(e) Do you think making a profit is more important for a growing business than managing cash flow? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award 2 marks for justified decision as to whether making a profit is more important for a growing business than managing cash flow. Points might include: Profit: • Main objective is to make a profit [k] without it owners will question point of business [an] • A source of finance [k] which can allow for expansion [an] • A measure of success [k] • Reward for risk taking [k] • Important for long-term survival [k] • Can help attract investors [k] Cash flow: • Need cash to pay day-to-day costs [k] such as suppliers, otherwise might not have sufficient materials to continue production [an] • Helps avoid cash flow problems [k] • A negative cash flow means business is receiving less cash than it is spending [k] • If negative might mean business is insolvent / forced into liquidation [k] whether business makes a profit or not [an] • Sales may be on credit [k] so even if making a profit may not receive money until later [an] so need cash to pay other costs [an] • Less likely to need overdraft [k] which could add to cash outflows / higher expenses [an] Other appropriate responses should also be credited. 6 This is a general question so there are no marks for application. For both evaluation marks response must be linked to a growing business. Do not award answers which state profit is used to pay day-to-day costs. Do not award definitions of profit or cashflow as this does not answer the question. 2(e) Justification might include: • The main objective for most private sector businesses is making a profit [k] without it owners will question point of business [an]. However, a business needs to manage its cash flow to make sure it can pay day-to- day costs [k] such as suppliers otherwise it might not have sufficient materials to continue production [an]. I think cash flow is more important as a business can continue for a while without making a profit, but it will find it very difficult to survive without cash [eval] especially at a time when a business is growing as it will need to be in a position to purchase additional items. [eval]

NSN is a multinational company. It makes cars. Over the years, technology has changed production methods. NSN uses just-in-time inventory control in all its factories. NSN plans to open a new 2 factory in country Z creating 7000 jobs. Country Z’s Government has offered an $80m grant to NSN. A spokesperson for NSN said: ‘Governments should support business activity. There were also other factors that influenced our decision to build the new factory there including the possible effects of economic growth.’ Define ‘multinational company’. (a) … … … … [2] Identify two reasons why a government might support business activity. (b) Reason 1: … … Reason 2: … … [2] Outline one advantage and one disadvantage to NSN of using just-in-time inventory control. (c) Advantage: … … … … Disadvantage: … … … … [4] Explain two ways in which an increase in economic growth might affect NSN’s decision to build a new factory in country Z. (d) Way 1: … … Explanation: … … … … Way 2: … … Explanation: … … … … [6] Do you think the ways technology has changed production methods benefits all employees? Justify your answer. (e) … … … … … … … … … … … … [6]

2(a) Define ‘multinational company’. Award 2 marks for a full definition. Award 1 mark for a partial definition. A business with factories, production, or service operations in more than one country [2] OR A business with production or service operation in another country outside its normal area of operation [2] Partial definition e.g. has businesses everywhere [1] OR works/operates in more than one country [1] 2 Do not award ‘sells in other countries’ as this could equally apply to an exporter. 2(b) Identify two reasons why a government might support business activity. Award 1 mark per reason. Points might include: • Create jobs • Increase competition / develop a market • Increase output / economic growth/GDP • Benefit society (small) businesses can grow into large/ important ones in the future • Generate new ideas • Can produce (a future source of) tax revenue Other appropriate responses should also be credited. 2 Only award the first two responses given. 2(c) Outline one advantage and one disadvantage to NSN of using just- in-time inventory control. Award 1 mark for each relevant advantage/disadvantage. Award 1 mark for each relevant reference to this business. Points might include: Advantages: • Less warehouse space [k] needed to store parts for cars [app] • Less inventory held [k] in its factories [app] • Lower storage costs [k] for the multinational company [App] • Improve working capital [k] • Improve cash flow [k] • Lower risk of obsolete/damaged stock [k] Disadvantages: • Very reliant on suppliers to deliver stock when needed / if parts not available / late it will have a major impact on production [k] as technology has changed how production is carried out [app] • May not be able to meet sudden/unexpected order [k] • Little room for mistakes (as minimal stock available for rework) [k] • Less (purchasing) economies of scale [k] Other appropriate responses should also be credited. 4 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Car • Factory • Multinational company • Technology changed production Other appropriate examples in context can still be credited. 2(d) Explain two ways in which an increase in economic growth might affect NSN’s decision to build a new factory in country Z. Award 1 mark for identification of each relevant way (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include: • Could lead to increased demand [k] for cars [app] increasing revenue [an] • Shortage of skilled workers [k] may make it more difficult to recruit workers [an] for the 7000 jobs[app] • Employees may ask for higher wages [k] increasing costs [an] • Increased rent costs / less choice of location [k] increasing fixed costs [an] for the factory[app] • Increased competition [k] so may gain few customers / low market share [an] Other appropriate responses should also be credited. 6 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Car • $80m (grant) • 7000 jobs • Just-in-time inventory control • Multinational company Other appropriate examples in context can still be credited. 2(e) Do you think the ways technology has changed production methods benefits all employees? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award 2 marks for a justified decision as to whether the way technology has changed production methods has benefited all employees. Points might include: • Need for retraining / learn new skills [k] leading to opportunities for promotion [an] • Safer conditions [k] so less risk of injury [an] • The job is more repetitive [k] so lower job satisfaction [an] • Fewer workers needed / workers may lose their jobs / redundancy [k] so lower standard of living [an] • More job insecurity / fear of change [k] so could reduce motivation [an] • More skilled workers may be needed [k] leading to higher pay [an] Other appropriate responses should also be credited. Justification might include: • Less job security [k] could reduce workers motivation [an]. However, more skilled workers may be needed [k] leading to higher pay. [an] No, it will not benefit all employees as it depends on the individual worker. Those who lose their jobs will not see the benefit from technology [eval] whereas those who keep their job can benefit from learning new skills. [eval] 6 This is a general question so there are no marks for application. Note: Answer must focus on the benefit or not to the workers so do not accept points such as ‘more efficient’ or ‘better quality/ less mistakes’ unless clearly link issue to employees. Do not award work is easier/less work as this is too vague.

Asmaa used a government grant to set up a small car repair business 4 years ago. Asmaa now has 3 full-time employees. Keeping her employees well-motivated is important to Asmaa. She 2 thinks her business has benefited from a low rate of unemployment in the economy. Asmaa is reviewing her cash-flow forecast. An extract is shown in Table 2.1. She wants to know how the closure of a competitor and an increase in the minimum wage rate might affect her forecast. Table 2.1 Extract of Asmaa’s cash-flow forecast ($000’s) March February January 40 55 40 Cash inflow 35 35 50 Cash outflow 5 20 (10) Net cash flow 60 40 50 Opening balance 65 60 40 Closing balance Define ’unemployment’. (a) … … … [2] Identify one cash inflow and one cash outflow a business might have. (b) Cash inflow:… Cash outflow:… [2] Outline one advantage and one disadvantage to Asmaa of using a government grant as a source of finance. (c) Advantage: … … … … Disadvantage: … … … … [4] Explain how the following changes might affect Asmaa’s cash-flow forecast. (d) Closure of a competitor: … … … … … … Increase in the minimum wage rate: … … … … … … [6] Explain two non-financial methods a small tertiary sector business could use to keep its employees well-motivated. Justify which method should be chosen. (e) … … … … … … … … … … … … [6]

2(a) Define ‘unemployment’ Award 2 marks for a full definition. Award 1 mark for a partial definition. When people want to work but cannot find a job [2] OR The proportion or percentage of the population that are capable of working but are unable to find a job [2] Partial definition e.g. people have no job [1] 2 2(b) Identify one cash inflow and one cash outflow a business might have. Award 1 mark per cash inflow/outflow. Cash inflows might include: • Money from cash/credit sales, sale of fixed assets, money received from bank loan / overdraft / other sources of finance Cash outflows might include: • Payments to employees, rent paid, interest payments, payments to suppliers, tax payments, dividend payments Other appropriate responses should also be credited. 2 Only award the first response given for cash inflow/outflow. 2(c) Outline one advantage and one disadvantage to Asmaa of using a government grant as a source of finance Award 1 mark for each relevant advantage/disadvantage. Award 1 mark for each relevant reference to this business. Points might include: Advantages • No need to repay [k] by the car repair business [app] • No finance cost / no interest to pay [k] which could help the cash-flow forecast [app] Disadvantages: • May not provide full amount needed [k] when she started 4 years ago [app] • May be restrictions about how it is used / cannot use the money how you want to [k] • Can take time to apply/obtain [k] Other appropriate responses should also be credited. 4 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Car repair • Small (business) • New/start-up (business) / when started 4 years ago • Cash-flow forecast / cash inflow Other appropriate examples in context can still be credited. 2(d) Explain how the following changes might affect Asmaa’s cash-flow forecast Award 1 mark for identification of each relevant effect [max 2]. Award 1 mark for each relevant reference made to this business [max 2]. Award 1 mark for each relevant explanation [max 2]. Points might include: Closure of competitors: • Could increase customers/demand [k] for the car repair business [app] increasing cash inflows [an] • Could increase prices [k] which may lead to higher cash inflow [an] than $40 000 in March [app] Increase in minimum wage: • May increase costs [k] to her 3 employees [app] which will increase cash outflow [an] • No effect [k] as may already pay them a higher amount [an] as she wants to keep them well-motivated [app] Other appropriate responses should also be credited. 6 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question: • Car repair (business) • 3/full-time employees • Well-motivated / motivated employees • Correct use of information in table 2.1 Other appropriate examples in context can still be credited. 2(e) Explain two non-financial methods a small tertiary sector business could use to keep its employees well-motivated. Justify which method should be chosen. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award 2 marks for a justified decision as to which is the best method for a small tertiary sector business to use to keep its employees well-motivated. Points might include: • Job rotation [k] as switching tasks can make work more interesting [an] • Job enrichment [k] as workers feel they have been given more responsibility / more important [an] • Delegation/empowerment [k] so workers feel more important/valued [an] • Praise [k] helps employees meet their esteem needs [an] • Employee of the month awards [k] recognition of hard work / outstanding service [an] • Provide opportunities for promotion [k] • Team working [k] Other appropriate responses should also be credited. Justification might include: Praise [k] helps employees meet their esteem needs. [an] Another method is job rotation [k]. Switching between tasks can help keep the work interesting. [an] I think praise is the better option as the problem with job rotation is whether a small tertiary business may not have sufficient tasks to be able to rotate everyone [eval] whereas praise can easily be offered to everyone which can help keep everyone motivated rather than just a few. [eval] 6 This is a general question so there are no marks for application.

Cambridge IGCSE Business Studies

IGCSE Business Studies External influences on business activity past paper questions

These questions test economic, environmental, and ethical influences on business.

78 free questions from 2017–2021, each with its marking scheme. Open the full topical bank to filter by subtopic, paper, and year.

External influences on business activity in IGCSE Business Studies exams, 2020–2025

Across 2020–2025, External influences on business activity accounted for 108 questions worth 2,160 marks in Cambridge IGCSE Business Studies papers.