Edexcel GCSE Business - Hertfordshire · 2020. 11. 17. · Edexcel GCSE Business Practice Exam Paper 2a Page 10 ANSWER ALL QUESTIONS IN THE SPACES PROVIDED Section B Look at Figure

Edexcel GCSEBusiness

Question PaperPaper 2a

Building a business

PRACTICE EXAM PAPER

Page 2 Edexcel GCSE Business Practice Exam Paper 2a

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Write your name here

Centre Number Candidate Number

Surname

Practice paperTime: 1 hour 30 Minutes

You do not need any other materials Total

Paper reference

Paper 2a

Other names

Edexcel GCSE BusinessPaper 2a: Building a business

Instructions • Use black ink or black ball-point pen • Fill in the boxes at the top of this page with your name, centre number and candidate number • There are three sections in this paper • Answer all questions in each section • Answer the questions in the spaces provided – there may be more space than you need • Calculators may be used • You are advised to show all your working out with your answer clearly identified at the end of your solution

Information • The total mark for this paper is 90 • The marks for each question are shown in brackets – use this as a guide as to how much time to spend on each question

Advice • Read each question carefully before you start to answer it • Try to answer every question • Check your answers if you have time at the end

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Edexcel GCSE Business Practice Exam Paper 2a Page 3

ANSWER ALL QUESTIONS. WRITE YOUR ANSWERS IN THE SPACES PROVIDED

Edexcel GCSE Business Paper 2aSection A

1 (a) Which one of the following documents would a business use to ensure it recruited a new member of staff with the right skills and qualifications

Select one answer:

A Person specification B Job description C Application form D Curriculum vitae (CV)

(1)

(b) Which one of the following is an internal source of finance for a growing business?

Select one answer:

A Share capital B Loan capital C Selling assets D Stock market flotation

(1)

Some questions must be answered with a cross in a box . If you change your mind about an answer, put

a line through the box and then mark your new answer with a cross .7

7

(c) Explain one impact on a business of using technology in production.

(3)

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(d) Explain one impact of pressure group activity on the marketing mix of a business.

(3)

(Total for Question 1 = 8 marks)

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2 (a) Which two of the following are examples of product extension strategies?

Select two answers:

A Updating packaging B Increased advertising C Launching a brand new product into the market D Increasing the selling price E Reducing costs

(2)

(b) Which two of the following are disadvantages to a business of using job production?

Select two answers:

A There is less scope to make one-off products B Requires a large amount of expensive machinery C Production costs can be high as it is a slow process D Worker motivation may be low due to repetitive work E Labour costs can be high as skilled workers are required

(2)

Table 1 contains some information about a business.

(c) Using the information in Table 1 calculate the net profit margin. You are advised to show your workings.

(2)

Sales revenue £450,600

Cost of sales £260,500

Gross profit £190,100

Other operating expenses & interest £165,200

Net profit £24,900

%

Table 1


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(d) Explain one advantage to a business of undertaking performance reviews of its employees.

(3)

(e) Explain one impact of globalisation on a UK business.

(3)


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3 (a) Which one of the following is not a method of internal business growth?

Select one answer:

A Merger B Expanding overseas C Selling to new markets D New product development

(1)

Figure 1 shows the sales revenue of four businesses as a percentage of the total sales revenue for the market for the month of March last year.

The total value of the sales revenue for the market as a whole for March was £35 million.

(b) Using the information in Figure 1, calculate the sales revenue, in pounds, that Business A had for the month of March last year. You are advised to show your workings.

(2)

£

Figure 1

Business D 10%

Business C 15%

Business B 30%

Business A 45%


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(c) Explain one reason why a business may want to differentiate its products.

(3)

(d) Explain one benefit of remote working to a business.

(3)

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(e) Discuss the likely benefit to a business of having a motivated workforce.

(6)


TOTAL FOR SECTION A = 35 marks

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ANSWER ALL QUESTIONS IN THE SPACES PROVIDED

Section B

Look at Figure 2, read the following extract carefully, then answer Questions 4, 5 and 6.

Hi-Tech Sheet Metal is a manufacturing company that specialises in making metal panels. Each panel is designed and produced to meet the specific requirements of each of its customers. Some of the industries supplied include:

h Medical

h Computer

h Vehicle

h Defence

Hi-Tech operates a large modern factory on the south coast of England and sells to customers all over the UK. As a successful and profitable business, growth is now a key objective. To meet this objective, the firm is now considering pursuing organic growth by expanding abroad and finding new markets. Alternatively, it is considering external growth by taking over a small overseas manufacturer.

Hi-Tech uses computer controlled equipment, such as laser cutters, (Figure 2) to enable the business to produce goods of the highest quality. The business has used the same, reliable suppliers over the last 10 years and operates a system of job rotation to motivate production employees. Hi-Tech, recognising that its customers demand the very best in manufactured products and due to the firm’s extensive use of technology in the production line, use quality control to manage quality. This approach to quality allows the business to compete more effectively and efficiently in this highly competitive market.

Hi-Tech has 30 employees, including management and office staff, many of whom have worked for the company for several years. The business relies heavily on the experience of its employees, especially given the need to communicate specialist technical information regarding its products with both colleagues and customers. E-mail is the main method of communication used by the business, although employees have complained that so many emails have made it hard to prioritise workload.

Figure 2 (source adapted from http://www.htsm-ltd.co.uk/)


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4 (a) Outline one benefit to Hi-Tech of its choice of suppliers.

(2)

(b) Analyse the impact on Hi-Tech of using quality control in its production process.

(6)


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5 Figure 3 shows the amount of sales revenue Hi-Tech earned from each industry it sells to over the last four years

(a) Identify the amount of sales revenue Hi-Tech earned from product sales to the computer industry last year.

(1)

(b) Identify the industry from which Hi-Tech earned the most sales revenue this year.

(1)

Figure 3


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Hi-Tech prides itself on providing good customer service to all of its customers.

(d) Analyse the impact on Hi-Tech of providing good customer service to its customers.

(6)

(c) Calculate the increase in sales revenue that Hi-Tech earned from the medical industry between this year and last year. You are advised to show your workings.

(2)


£

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6 (a) State one barrier to effective communication which Hi-Tech might face.

(1)

(b) Outline one possible benefit to Hi-Tech from using job rotation for its production workers.

(2)


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Hi-Tech is considering two options in order to meet its growth objective:

Option 1: Organic growth through expanding overseas and finding new markets

Option 2: External growth through taking over a small overseas manufacturer

(c) Justify which one of these two options Hi-Tech should choose.

(9)


TOTAL FOR SECTION B = 30 marks

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ANSWER ALL QUESTIONS IN THIS SECTION

Section C

EasyJet is a British budget airline and public limited company that flies to more than 30 countries, the majority of which are within Europe. The idea behind the budget airline means that customers have to pay for extras, such as food and drink and extra legroom when on board. EasyJet started trading in 1995 and, following expansion through internal and external growth, passenger numbers and sales revenue has consistently increased (Figure 4).

EasyJet’s early marketing was based on “making flying as affordable as a pair of jeans” with the company encouraging travellers to “cut out the travel agent”. In recent years, this plan has been successful, as most of easyJet’s sales do come through the use of e-commerce, cutting out the travel agent from the sales process altogether.

EasyJet operates in an extremely competitive market with other budget airlines, such as Ryanair, providing fierce competition. EasyJet is now thinking about targeting customers with higher incomes, who do not traditionally fly with budget airlines. The company is also currently considering flying to more destinations.

In an attempt to reduce its impact on the environment, easyJet uses efficient, modern aircraft (Figure 5). It has installed lightweight seating on its aircraft to reduce the amount of fuel used per flight. The cost of continually updating its aircraft is high, but easyJet is committed to reducing its impact on the environment and is focussed on sustainability. EasyJet also aims to recycle as much on board passenger waste as possible, such as newspapers and plastic bottles, although this has meant an increase in workload for cabin staff.Source adapted from: http://corporate.easyJet.com/corporate-responsibility/environment/carbon-emissions and http://corporate.easyJet.com/corporate-responsibility/environment/waste-management

Look at Figures 4 and 5, read the following extract carefully, then answer Question 7.

Number of passengers carried by easyJet this year & two year ago

Figure 4Adapted from http://www.telegraph.co.uk/business/2017/01/06/passenger-numbers-

rise-easyJet-despite-turbulent-year/

Figure 5http://news.bbc.co.uk/1/hi/uk/7000103.stm


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7 (a) Define the term ‘public limited company’.

(1)

(b) Using Figure 4, identify the number of passengers carried by easyJet two years ago.

(1)

(c) Outline one reason why easyJet use e-commerce to sell airline tickets to customers.

(2)

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In order to increase its sales revenue easyJet is considering two options:

Option 1: Targeting customers with higher incomes

Option 2: Flying to more destinations

(d) Justify which one of these options easyJet should choose.

(9)


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(e) Evaluate whether easyJet is likely to benefit from its environmental considerations. You should use the information provided as well as your knowledge of business.

(12)

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TOTAL FOR SECTION C = 25 marks

TOTAL FOR PAPER = 90 marks

Documents

Edexcel GCSE Business - Hertfordshire · 2020. 11. 17. · Edexcel GCSE Business Practice Exam Paper 2a Page 10 ANSWER ALL QUESTIONS IN THE SPACES PROVIDED Section B Look at Figure