Business

Using the data in the case, calculate the accounting rate of return (ARR) on BFJ's proposed factory in country D.

Using the data in the case, calculate the payback period for BFJ's proposed factory in country C.

Using the quarterly export volumes recorded in the case, calculate the four-quarter centred moving average for Quarter 1 2025.

Analyse one advantage and one disadvantage that BFJ experiences as a result of delegation.

Analyse two effects on BFJ of the corporate social responsibility (CSR) commitments it has made.

Evaluate the likely impact on BFJ of fluctuations in country P's exchange rate.

Evaluate how useful BFJ would find time series analysis when it makes business decisions.

Evaluate which location, country C or country D, BFJ should choose for its new factory.

Paper 2 (AS)

Crispa Snacks (CS) - a mass-market crisp manufacturer, cost-plus pricing, capital intensive production and piece-rate pay

6 Q

Crispa Snacks (CS) sells its crisps to the mass market. Identify one feature of a mass market.

Explain one limitation for CS of basing its marketing decisions on qualitative data.

Explain the term market segmentation.

Refer to Table 1.1 and the other information about CS. Calculate the selling price of one pack of Baked crisps.

Analyse two benefits to CS of capital intensive operations.

Evaluate whether CS should replace hourly pay with piece-rate pay for its employees.

Paper 3 (A Level)

Fieldcrisp Foods (FCF) · Business decision-making

8 Q

Using the data in the case, calculate the income elasticity of demand for FCF's crisps sold to retailers.

Using the data in the case, calculate the price elasticity of demand for FCF's single-serve bag if its price is raised from $2.40 to $2.70.

Using data in Table 1.1, calculate FCF's new gearing ratio if it takes out a $2.5 million loan to build a factory and open a regional office in cou...

Analyse two reasons why product quality matters to FCF.

Analyse two impacts on FCF of selling in a market where it faces many competitors.

Evaluate the likely benefits to FCF of decentralising decisions to the regional office it plans to open in country K.

Evaluate the likely impact on FCF's shareholders of the decision to raise long-term borrowing by $2.5 million.

Evaluate the likely impact on FCF's marketing decisions of a rise in average income in country B.

Paper 4 (A Level)

GreenStalk (GS) · Business strategy

2 Q

Evaluate how effective the operations strategy GreenStalk followed from 2020 to 2024 has been.

Advise GreenStalk on how the policies announced by the new government are likely to affect the strategy it chooses next.

Paper 3 (A Level)

Halcyon Copper (HCP) · Business decision-making

9 Q

For the Ridgeback project, identify the minimum duration of the whole project.

Calculate the net present value (NPV) of the Solano brine project over its six years, using the 8% discount factors shown in Table 1.1.

Calculate the payback period for the Solano brine project, using the net cash flows shown in Table 1.1.

Using the node times given for the Ridgeback project in Table 1.2, calculate the total float for activity C.

Analyse two advantages that the government of country P could gain from the nationalisation of Halcyon Copper (HCP).

Analyse one benefit and one limitation to Halcyon Copper of sales forecasting, now that it has begun selling copper directly to industrial customers.

Evaluate Halcyon Copper's decision to go ahead with the Solano brine project.

Evaluate how important critical path analysis (CPA) is to the successful completion of the Ridgeback open-pit mine.

Evaluate Halcyon Copper's decision to apply two different approaches to human resource management at its two new sites.

Paper 3 (A Level)

Harbourline Boats (HB) · Business decision-making

8 Q

Using the information in Appendix 2, calculate the span of control of HB's yard sales manager.

Using the information in Appendix 3, calculate the accounting rate of return (ARR) on the proposed ERP system.

Using the information in Appendix 4, calculate the change in HB's rate of inventory turnover from 2024 to 2025.

Analyse two factors that are likely to have influenced HB's choice of site when it moved its sales yard.

Analyse two problems HB might face in placing a value on its inventory.

Evaluate how far economic factors are likely to affect the decisions HB makes.

Evaluate whether HB's directors should remove a layer of management from the organisational structure.

Evaluate how important sales forecasting is for HB.

Paper 4 (A Level)

HeliosHome (HH) · Business strategy

2 Q

Evaluate the marketing strategy that HeliosHome pursued over the years 2021 to 2024.

Advise HeliosHome's directors on whether a blue ocean strategy is the best basis for the company's future strategy.

Paper 2 (AS)

Highland Wind Power (HWP) - a wind-farm operator, budget variance, capital intensity and a joint venture

6 Q

Identify one quality that a successful entrepreneur is likely to need.

Explain what is meant by the term working capital.

Using Table 1.1, calculate HWP's profit variance for 2024 and state whether it is favourable or adverse.

Explain one drawback that HWP would encounter through its use of budgets.

Analyse two limitations for HWP of being a capital intensive business.

Evaluate whether forming a joint venture with VC is the best way for HWP to achieve further growth.

Paper 2 (AS)

Insight Pulse (IP) - a quaternary-sector market-research firm, sampling reliability and home-worker motivation

6 Q

Identify one stage of the transformational process used by a business such as Insight Pulse (IP).

Refer to Fig. 1.1 and to the other information about IP. Calculate how many of the people IP surveyed chose one of the two most popular types of co...

Explain the term multinational business.

Explain one reason why IP uses sampling.

Using Fig. 1.1 together with the rest of the case, analyse two reasons why the findings IP produced for NovaMedia could be unreliable.

Evaluate which method of raising the motivation of IP's home-working employees would be the most effective.

Paper 4 (A Level)

Kestrel Lane Pottery (KL) · Business strategy

2 Q

Evaluate KL's finance and accounting strategy between 2015 and 2025.

Owen has proposed that the directors start with a SWOT analysis before choosing a new business strategy. Advise KL's board of directors on which ot...

Paper 4 (A Level)

Lumen Screens (LS) · Business strategy

2 Q

Advise the Lumen Screens board on a suitable strategy to improve the performance of its employees.

Evaluate how effective Lumen Screens' contingency planning was from 2018 to 2025.

Paper 3 (A Level)

Mira Halden Chocolates (MHC) · Business decision-making

8 Q

Use Table 1.1 to calculate the percentage increase in country Z's exports from 2015 to 2025.

Use Table 1.1 to calculate the income elasticity of demand for premium chocolate in 2025.

Use Table 1.3 to calculate the net present value (NPV) of the investment in the IT proposal.

Analyse two benefits that MHC is likely to gain from adopting lean production.

Analyse one advantage and one disadvantage to MHC of Mira's leadership.

Evaluate whether MHC should go ahead with the IT proposal as a way of selling its chocolates abroad.

Evaluate the likely effect on MHC of country Z's rapid economic growth between 2015 and 2025.

Evaluate how useful accounting data would be to CF in deciding whether to buy shares in MHC.

Paper 3 (A Level)

Nadia's Kitchen Soups (NKS) · Business decision-making

8 Q

Using the data in the case, calculate the payback period for NKS's proposed new filling machine.

Using the data in the case, calculate the accounting rate of return (ARR) on NKS's proposed new filling machine.

Using the data in the case, calculate NKS's monthly revenue from the classic soup once the planned higher price applies.

Analyse two benefits NKS could obtain by adopting quality assurance.

Analyse two impacts that the changes in external influences are likely to have on NKS.

Evaluate how important emotional intelligence is to the way Nadia leads NKS.

Evaluate how useful elasticity measures are to NKS when it sets the marketing mix for the new export soup.

Evaluate the case for NKS going ahead with the investment in the new machine.

Paper 1 (AS)

Paper 1 · Business concepts (Section B essays and extended answers)

66 Q

Define the term triple bottom line.

Define the term 'corporate social responsibility (CSR)'.

Define the term 'fixed cost'.

State what is meant by the term 'unfair dismissal'.

State what is meant by the term 'capital expenditure'.

State what is meant by the term 'stakeholder'.

Define the term psychographic segmentation.

Define the term work-life balance.

Define the term intrapreneurship.

Define the term 'buffer inventory'.

State what is meant by the term 'labour productivity'.

Define the term liquidation.

State what is meant by the term 'break-even analysis'.

State what is meant by the term 'employee morale'.

Define the term on-the-job training.

State what is meant by the term 'hostile takeover'.

State what is meant by the term 'market growth'.

Define the term public sector.

Explain one method a business could use to raise the productivity of its labour.

Explain one advantage of the social enterprise model for the business that adopts it.

Explain one advantage that induction training for new employees brings to the business providing it.

Break-even analysis has limitations as a decision-making tool. Explain one such limitation for a business that relies on it.

Explain one method that a business could use to decide the price of a product.

Explain one method a business could use to pay its employees.

Explain one benefit to a business of using labour-intensive methods of operation.

Explain one method a business could use to lower its variable costs.

Explain one advantage for a business of setting clear objectives.

Explain one reason why a business might revise its objectives as time passes.

Explain one drawback for a business of training its employees off the job.

Explain one drawback for a business of dividing its market into segments.

Explain one responsibility that an employee has towards the business that employs them.

Explain one reason why it is important for a business to have sufficient working capital.

Explain one reason why a workforce plan may be needed by a business.

Explain one reason why setting objectives is important for a business.

Explain one benefit that a newly established business gains from drawing up a business plan.

Explain one way in which a business could raise finance from an external source.

Analyse one reason that could lead a business to keep its inventory levels low.

Analyse one reason why a business might measure the productivity of its labour.

Analyse one probable effect on a business of producing above its maximum capacity.

Analyse one effect on a business of choosing to outsource part of its operations.

A low rate of labour turnover can benefit a business. Analyse one such benefit.

High labour turnover has consequences for a business. Analyse one such consequence.

Analyse two benefits to a business of meeting the needs of its employees in the workplace.

A business plots each of its products on a Boston Matrix. Analyse two benefits it gains from doing so.

Analyse two benefits for a business of producing goods by job production.

Analyse two reasons why a business might choose to sell its products to consumers through a direct channel of distribution.

Analyse two factors that could affect which sources of finance a business chooses.

Analyse two benefits that internal sources of finance offer a business that is funding growth.

Analyse two drawbacks for a business of using sampling when it carries out market research.

Analyse two ways in which a business could use cost information.

Analyse two benefits that product portfolio analysis offers the business which carries it out.

Analyse two benefits for a business of targeting a niche market.

Analyse two benefits to a business of growing by means of a vertical merger.

Analyse two ways in which inaccurate information about costs could cause a business to fail.

'Most small businesses that fail do so because their owners never grasp how cash differs from profit.' Evaluate this view.

Evaluate whether branding matters more than any other factor in promoting a newly launched chilled fruit smoothie successfully.

'The single most important quality for an entrepreneur in the handmade jewellery design industry is a willingness to take risks.' Evaluate this view.

'Mass customisation plays a major part in the success of a bicycle manufacturer.' Evaluate this view.

'No element of the marketing mix matters more to the success of a smartwatch manufacturer than its unique selling point (USP).' Evaluate this view.

'Carrying out break-even analysis is essential if a newly opened fitness gym is to succeed.' Evaluate this view.

'For a takeaway pizza chain, packaging is the most effective way of promoting the business.' Evaluate this view.

'Removing trade unions from the workplace is the only way to prevent strikes at a state-owned postal service.' Evaluate this view.

'For a manufacturer of children's bicycles, developing new products is more important to its success than any of its other activities.' Evaluate th...

Evaluate how important budgeting is to the success of a large hospital building project.

'Borrowing from a bank is the best way for a sportswear retailer to finance opening shops in three new cities.' Evaluate this view.

'Mass marketing is the key to success for a chain of pizza takeaway outlets.' Evaluate this view.

Paper 2 (AS)

Ravi's Care Meals (RCM) - a sole-trader meal-delivery service for a regional health authority, profit per van, employee participation, overdraft and CRM

6 Q

Identify one feature of a sole trader business.

Explain what is meant by the term public sector.

Using Table 1.1 and the other information in the case, calculate RCM's profit per delivery van in 2025.

Explain one benefit to RCM of using employee participation to motivate its staff.

Analyse one advantage and one disadvantage to RCM of using a bank overdraft.