- The total mark for this paper is 80.
- The number of marks for each question or part question is shown in brackets [ ].
- Answer all questions. Write your answers in the spaces provided.
Paolo wants to start up a business making cakes. He plans to sell all of his products to a wholesaler. Paolo knows the packaging for his products will be important. He has prepared some financial and sales data. An extract from this data is shown in Table 1.1. Paolo is considering using crowdfunding as a source of finance. He knows the business will also need working capital.
| Average price per cake | $6 |
| Average cost per cake | $4 |
| Forecast average number of cake sales per day | 50 |
TBX manufactures high-quality steel which is used to build railways. The method of production used allows TBX to benefit from economies of scale. The business holds a high level of inventory including iron ore. The Managing Director knows business activity could have an impact on the environment and is considering ways the business can contribute to sustainable development.
Country X has a mixed economy with both private and public sector organisations. These organisations are involved in different sectors of economic activity. In the last 20 years the primary sector has become less important to country X’s economy. A summary of the changes is shown in Table 3.1. The government is planning to encourage multinational companies to set up factories in country X.
| Economic sectors in country X as a percentage of GDP | |||
|---|---|---|---|
| Year | Primary | Secondary | Tertiary |
| 2000 | 60% | 15% | 25% |
| 2020 | 20% | 30% | 50% |
TFN is a travel business which sells holidays. It has 37 shops and 1000 employees. Last year TFN’s profit increased to $46 million. The Managing Director knows that good customer service has helped maintain customer loyalty. He said: ‘TFN’s managers use ideas from Herzberg’s two-factor theory to help motivate employees. All employees are provided with off-the-job training and each manager has a wide span of control.’
