A-Level Business Studies Question And Answers 2020/2021

A-Level Business StudiesQuestion and Answers 2020/2021All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

ContentsPeople in the Workplace (Questions) . 3People in the Workplace (Answers) . 4Budgeting, Costing and Investment (Questions) . 6Budgeting, Costing and Investment (Answers) . 7Business Objectives and Strategy (Questions). 8Business Objectives and Strategy (Answers) . 9Business Organisation (Questions) . 11Business Organisation (Answers) . 12Company Accounts (Questions) . 14Company Accounts (Answers) . 17External Environment (Questions) . 20External Environment (Answers) . 21Management, Leadership, Motivation and Communication (Questions) . 23Management, Leadership, Motivation and Communication (Answers) . 25Marketing (Questions) . 28Marketing (Answers) . 29Marketing Planning (Questions) . 30Marketing Planning (Answers) . 31Production Control (Questions) . 33Production Control (Answers) . 34Production Decision Making (Questions). 36Production Decision Making (Answers) . 38Ratio Analysis (Questions). 41Ratio Analysis (Answers) . 42These notes cover the main areas of this subject. Please check the specific areas you need with your examboard. They are provided “as is” and S-cool do not guaranteed the suitability, accuracy or completeness of thiscontent and S-cool will not be liable for any losses you may incur as a result of your use or non-use of thiscontent. By using these notes, you are accepting the standard terms and conditions of S-cool, as stated in the scool website (www.s-cool.co.uk)2All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

People in the Workplace (Questions)1. Study the information and answer the questions below on workforce characteristics of the UK and France.a) What is meant by the term flexible workforce?b) Compare the flexibility of the labour markets of France and the UK.c) What are the main advantages of flexible working to the employer and the worker?d) How, if at all, is it possible to improve flexibility of the workforce to benefit the whole economy?(Marks available: 20)2. a) Why might a change in working practices and rewards imposed on the workforce by the employer be asource of conflict between employer and employee?b) What is the role of trade unions in resolving conflict?(Marks available: 10)3All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

People in the Workplace (Answers)Answer outline and marking scheme for question: 1Give yourself marks for mentioning any of the points below:a) 'The flexible workforce' refers to those workers who are multiskilled or those workers whose hours arechanged according to the demand of the employer.(5 marks)b) The UK would appear to have a more flexible workforce as shown for example by the percentage of parttime workers of the total labour force, a higher percentage of temporary contracts of less than one year. Francehas a higher proportion of companies who have increased their use of shift working.(5 marks)c) The employer can meet peaks in demand they have lower add on costs on pensions and insurance. They canuse the temporary contract as a form of long term recruitment.The employee can work hours to suit their needs, gain work experience, can be a stepping stone to a permanentjob.(5 marks)d) Flexibility of the workforce depends to the extent that restrictions or barriers within the labour market havebeen reduced or eradicated. For example the reduction of demarcation lines and the increased use of Japaneseworking methods such as cell production can improve productivity and reduce labour turnover.The increased flexibility of the employed may have caused higher employment or made it difficult for thoseunemployed to obtain jobs. Output per person may have increased at the expense of unemployment and thewaste of this resource. Some types of flexibility such as part-time work might have held wage costs downenabling UK firms to become more competitive.(5 marks)(Marks available: 20)4All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

Answer outline and marking scheme for question: 2Give yourself marks for mentioning any of the points below:a) Resistance to change is usually applicable to any form of change. Depends on communication beforehand, theamount of training given. Rewards might mean Differentials are eroded and new reward system might be seenas inequitable.(5 marks)b) Represent members in disciplinary matters with the employer, are often consulted by employers prior tochanges in workforce being made and their agreement sought, negotiate with employers on terms and generalconditions for employees, abide by rulings of conciliation and arbitration bodies.(5 marks)(Marks available: 10)5All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

Budgeting, Costing and Investment (Questions)1. a) What is meant by Net Present Value in relation to investment appraisal?b) The following are net cash flows from three projects, A, B and C, which have an initial investment of 40,000:Using investment appraisal methods with which you are familiar, state which of the projects above you wouldrecommend.Give reason for your answer.(Marks available: 10)6All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

Budgeting, Costing and Investment (Answers)Answer outline and marking scheme for question: 1Give yourself marks for mentioning any of the points below:a) Net present value is the present value of future income from an investment project, less the cost.(5 marks)b) Payback method. B is fastest.Return on investment. A is best.NPV. B is bestB is the best choice.(5 marks)(Marks available: 10)7All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

Business Objectives and Strategy (Questions)1.a) Why is it important for a business to specify its objectives?b) Explain, with examples, why differing stakeholder and organisational objectives might cause problems formanagers.(Marks available: 10)2.Explain, with examples, what is meant by the stakeholders in a company.Is it in the interests of all stakeholders that a company should try to maximise its profits?(Marks available: 20)8All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

Business Objectives and Strategy (Answers)Answer outline and marking scheme for question: 1Give yourself marks for mentioning any of the points below:a) Focus for all employees, measure by which to judge the performance of the business, informs strategicplanning.(5 marks)b) Conflict, e.g. local community objective - clean environment, company objective - profit (cost cutting createspollution).Decision making: e.g. Shareholders may demand high dividends, but management seek to invest profits for longterm.(5 marks)(Marks available: 10)Answer outline and marking scheme for question: 2Stakeholders are those persons who hold a stake in the company; they include shareholders, banks, the localcommunity, customers, employees, government - if the American definition of "anyone who may be affected bythe actions of the corporation" is adopted, even competitors.(max 12)A candidate might wish to refine the question and write of "long term" profits and then argue, with MiltonFriedman, that the objective of the company is to increase shareholder wealth.Many will argue that the company has a duty to other stakeholders. Johnson and Johnson, for example, put thecustomer first, then the employees and the shareholders last. Green issues may be mentioned.(max 12)ExcellentCompetentA clear and concise explanation of the stakeholder concept and a well sustained argument for oragainst the maximising of profits.An informed account of the stakeholder concept and a reasoned argument foror against maximising profits.9All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

AdequateWeakA knowledge of what is meant by stakeholders and some reasons for or againstmaximising profits.A limited knowledge of what is meant by stakeholders and ill-connectedcomments for or against maximising profits.(Marks available: 20)10All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

Business Organisation (Questions)1.a) What is meant by "tall" and "flat" organisational structures?b) Why have many organisations moved away from tall to flat organisational structures?(Marks available: 10)2.a) What services do banks offer to small businesses?b) How might the purpose of a loan influence the period over which it is borrowed?(Marks available: 10)3.a) What is the difference between organic growth and growth through acquisition?b) Is growth necessarily good for a firm?(Marks available: 20)11All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

Business Organisation (Answers)Answer outline and marking scheme for question: 1Give yourself marks for mentioning any of the points below:a) Tall structures refer to hierarchical organisations with many layers of management/levels of responsibility.Flat structures have very few levels of responsibility.(5 marks)b) Tall organisation structures have become less popular due to moves towards leaner organisations, teamworkethos, increased customer focus and the ability to respond quickly to external changes and customer demands.(5 marks)(Marks available: 10)Answer outline and marking scheme for question: 2Give yourself marks for mentioning any of the points below:a) Banks offer a range of services to small business, lend money and offer advice.The extent of the help will depend on a number of factors such as the financial standing of the company, i.e. thelength of time it has been trading, sales turnover.If it is a new company, the small business may find difficulty in raising finance through banks, they may have topay higher rates of interest, and the banks may be less flexible if the business deviates from its business plan.(5 marks)b) Considerations should include; what the finance is to be used for, for example, current or fixed assets. Willthe purchase be obsolete before the loan is paid back?(5 marks)(Marks available: 10)12All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

Answer outline and marking scheme for question: 3Give yourself marks for mentioning any of the points below:a) Organic growth is growth through increased sales, resulting in capital investment, perhaps in new plant.Growth through acquisition (Hanson is a good example) occurs through takeovers of other businesses, so thatthere is no growth in the industry as a whole, simply a concentration among fewer and larger, financial groups.(max 10 marks)b) The second question can be answered in several ways. A candidate might note that a firm may change itscharacter as it grows: A family firm may find that growth entails bringing in outsiders and relinquishing somefamily control.Overtrading might be discussed: a firm can overextend its borrowing and find itself starved of working capital(more firms go bust in the upturn following a recession than during the recession itself).(max 10 marks)(Marks available: 20)13All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020

Company Accounts (Questions)1. Companies A a

A-Level Business Studies Question and Answers 2020/2021 All copyright and publishing rights are owned by S-cool. First created in 2000 and updated in 2013, 2015 & 2020. 2 Contents People in the Workplace (Questions) . 3 People in the Workplace (Answers) . 4 Budgeting, Costing and Investment (Questions). 6 Budgeting, Costing and Investment (Answers) . 7 Business Objectives and .