Vous êtes sur la page 1sur 98

Mr G Martin

2007

Mr G Martin 2007 GCSE Business Studies Revision Guide 1

GCSE

Business

Studies

Revision Guide

1

 

Command Words

Ok, that’s great, but what do the command words mean?

 

State

To give a fact

Define

To give the definition of something, to state a fact

Describe

To talk about something

Summarise To give a brief overview of something

 

Distinguish

To look at two things and draw out the strengths weaknesses or characteristics of something

Discuss

To talk about something in depth

Explain

To discuss something, considering the reasons why it is the way it is

Analyse

To read through something and find the key points, draw out the advantages and disadvantages, strengths and weaknesses, etc

Assess

Similar to analyse

Evaluate

To consider the strengths and weaknesses, advantages and disadvantages and then give your opinion

Contrast

indicate the differences between two things

How to get the top marks

Right, so how does all this fit together?

 

Short answer questions L1 & L2

 

For these lower marks questions, you need to show that you know the answer to the question and can give an example, you should also try to apply your answer to the case study

For example:

Define the term Public Limited Company

 
 

[2 Marks]

L1- A clear definition

A public limited company is one which is owned by shareholders, and run on a day to day basis by a board of directors. A PLC can sell it’s shares on the stock exchange. For example ITV plc which provides a TV service.

L2- The use of an example

 

7

Structured response questions (L1, L2, L3) For this question type you must demonstrate L1 and
Structured response questions (L1, L2, L3)
For this question type you must demonstrate L1 and L2, and that you have analysed the case study (L3)
For example:
Explain the difference between fixed and variable costs using
examples relevant to Home Service.
[4 Marks]
Fixed costs are those that are always there, regardless of how
much or how little you sell, for example rent, salaries and
business rates, however variable costs are different types of cost
because variable costs those that rise as your sales increase, such
as additional raw materials, extra labour and transport.
In the case of Home Service the fixed costs are the lease of the
van which James will use to run his business, the variable costs
are the fuel costs of transport of the goods to the customers
houses.
L1- The candidate clearly understands
the terms fixed and variable costs.
The candidate demonstrates that they
know the difference between fixed
and variable
L2- Examples are used to apply the
knowledge and understanding
L3- The answer is clearly applied to
the case study
Open Ended Questions (L1, L2, L3 & L4)
These questions will require you to demonstrate all of the skills; stating your knowledge (L1), application
(L2), using evidence from the case study (L3), and making a reasoned judgement (L4)
For example:
When James carried out some financial planning he discovered that he needed £5000.He is considering taking
out a bank loan for this amount.
Explain the advantages and disadvantages to James of a bank loan
for £5000.
L1/ L2- Showing a thorough
understanding of sources of finance,
specifically bank loans
You should justify your opinion.
[12 Marks]
L3- Showing advantages &
disadvantages that are relevant to
James
L4- Giving James some overall
advice, based on AO3. Should he
take out the loan or not?
In Summary…
Right so before you even begin to start answering exam questions, you need to do the following:
1)
2)
3)
4)
5)
Read the whole exam paper first
Pick out your confidence questions (the ones you know how to do really easily), this wakes up your
brain, once you have done these you will find that the more difficult questions start to make better
sense!
Read the question carefully.
Identify the level of response, which the question is looking for, is it Level 1, Level 2. Level 3 or
Level 4…. Write a quick note next to the question to remind you.
Look at the marks, this will help you to identify the level of response, and the amount that you
8
External Environment of the Business Business Activity Primary, secondary and tertiary industries Primary Industry

External Environment of the Business

External Environment of the Business Business Activity Primary, secondary and tertiary industries Primary Industry

Business Activity

Primary, secondary and tertiary industries

Primary Industry Getting the raw materials

Secondary Industry Processing raw materials into finished goods.

Tertiary Industry Providing a service (either a direct service to the consumer or a commercial service to industry).

There are three industrial sectors in the economy. They are the primary sector, secondary sector,
There are three industrial sectors in
the economy. They are the primary
sector, secondary sector, and the
Cinema
the tertiary sector.
Tin
Taxis
Extractive Industries
Gold
Consumer Services
Banks
Coal
Hairdressing
Tertiary
Livestock
Primary
Farming
Transport
Arable
Wholesale
Commercial Services
Fishing
Merchant Banks
Forestry
SECTORS
Timber
Cars
Food
Making/manufacturing
Desks
Secondary
Food
Metals
Processing
Raw Materials

This brainstorm shows examples of the types of goods and services that are produced by the primary, secondary and tertiary sectors

19

shows examples of the types of goods and services that are produced by the primary, secondary
shows examples of the types of goods and services that are produced by the primary, secondary

Over to you

Below is data on employment levels in the various sectors of the economy.

Employees in employment in the UK (%)

 
 

1971

1981

1991

2001

Distribution, hotels, catering and repairs

20

21

22

28

Manufacturing

29

26

19

13

Financial and business services

10

11

15

18

Transport and communication

6

6

6

6

Construction

5

5

5

5

Agriculture

2

2

2

2

Energy and water supply

3

3

2

1

Other services

27

28

30

30

TOTAL

100

100

100

100

Questions

1. Categorise the industries listed above into primary, secondary and tertiary industries.

2. Using the answer to the first question, copy and complete the following table

3. Describe the changes that have taken place in the UK economy over time, why is this the case?

Employees in employment – Sectors (%)

1971

1981

1991

2001

Primary

Secondary

Tertiary

European Union

The effects of the European Union Creating a free trade area Establishing a customs union
The effects of the European Union
Creating a free trade area
Establishing a customs union (imposition of a common external tariff against good and services from outside the area
(late 1950s).
The formation of a common market (free movement of all factors of production)
EU had removed most of the remaining barriers to the free movement of goods, services and factors of production.
Economic Union required the need for a singal currency and co-ordinated monetary and fiscal policy.
Regulations
They have binding legal effect without confirmation by the member countries’ parliaments.
They have primacy over national law if any conflict arises.
Directives
These require member states to introduce legislation in their national parliaments to enact certain EU decisions.
If members don’t introduce the directive the Commission may refer the matter to the Court of Justice as a last resort.
20
The Single Market It is a conscious attempt to remove remaining barriers to trade within
The Single Market
It is a conscious attempt to remove remaining barriers to trade within the EU.
The creation of common technical standards for EU products.
One product can be designed to sell throughout the EU.
The harmonisation of taxation and duties.
The free movement of people.
A reduction of paper and administrative work for trade within the EU.
The free movement of capital.
Ending duty free sales within the EU from 1999.
The impacts of the single market on businesses
Creating more opportunities for firms to benefit from economies of scale in marketing and production.
Creating more opportunities for firms to become more highly specialised.
Creating more opportunities for mergers and joint ventures between national firms in the EU
Creating a common European currency (The Euro) to be used for transactions throughout the Union.
Effects of the (single currency) Euro on businesses.
Businesses would no longer have to pay commission when exchanging currencies.
It would result in a large market, bringing the benefits of economies of scale.
Makes trading easier and cheaper.
OVER TO YOU
Complete the following:-
The Single Market has influenced UK business in several ways:
Common standards of …………………
the EU, which UK firms must meet
and …………………
have been set throughout
Open ……………………
encourage competition, requiring UK firms to be efficient in
order to ……………………… successfully
Free movement of ……………………
skill development
and goods encourages ……………………
and
QUALITY, LABOUR, MARKETS, SAFETY, COMPETE, EMPLOYMENT
The Organisation
Aims and objectives of business
Needs and Wants
Different people have different wants depending on their personalities and experiences. Needs are the essential items which we require
to operate effectively in our life. Wants are the things, which make our life easier.
Essential needs: Air, Water, Food, Warmth/shelter.
Businesses activities are concerned with satisfying consumer needs and wants.
Stakeholders
Stakeholders are people who can affect and be affected by a business
They are the different groups involved with the business (the stakeholders)
Owners Consumers
Managers
Employees
Government
Tax Payers
Competitors
The Community
21

Objectives Business objectives are steps which a business needs to take to work towards achieving their aim.

 

Company Aims

 
 
 
 
 

Finance

Marketing

 

Production

Human

Department

Department

Department

Resources

Objectives

Objectives

Objectives

Department

 

Objectives

 
 
 
 
 
 
 
 
 

Individual

Individual

Individual

Individual

 

Individual

Individual

Individual

Individual

Objectives

Objectives

Objectives

Objectives

Objectives

Objectives

Objectives

Objectives

Mission Statement Every business either in the public or private sector should have a mission statement, which states the overall aim of the business and the purpose of its existence.

Purposes of a mission statement

 

It incorporates aims into words.

It outlines the ultimate reason for the business.

 

It sends a clear message to all stakeholders.

It establishes stakeholders’ needs in the business.

It provides the opportunity to shape the business culture.

 

It motivates employees to work towards the business objectives.

 

It helps to establish the structure and organisation of the business.

Public Sector Objectives These organisations follow public service objectives rather than profit maximisation (e.g. high quality health service or serving rural areas). However they still have to cover costs (sometimes with help of a subsidy)

Business Objectives in the Private Sector

 
Business Objectives in the Private Sector  

Profit maximisation.

 

Growth/Expansion.

Survival.

Prestige.

Interest/Hobby.

 

Business Objectives in the Public Sector

 

To provide a service at affordable price.

To breakeven (revenue to cover costs).

To make some profits.

 

Tax, Interest Rates & Exchange Rates

 

The National Government is responsible for the laws that we live by. It controls the economy trying to

1. Maintain low inflation (the change in the general price level). This affects the businesses costs

2. Maintain a stable exchange rate (the rate at which currencies are exchanged). This affects international trade (imports and exports)

3. Achieve high employment and economic growth. This will increase a business’ revenue through increased consumer spending.

It can achieve these objectives through changes in taxation and government spending.

Taxes that affect businesses are

 
 

23

Ownership and Internal Organisation Organisational Charts The structure of an organisation is known as an
Ownership and Internal Organisation
Organisational Charts
The structure of an organisation is known as an organisation chart.
The Role of an Organisational Chart
∑ It illustrates job titles of employees.
∑ It illustrates employees’ relationships with each other.
∑ It illustrates levels of responsibilities / authorities.
∑ It illustrates the degree of specialisation in the organisation.
∑ It illustrates opportunities for internal promotion.
∑ It illustrates different functions in the organisation.
∑ It illustrates levels of hierarchy.
∑ It illustrates paths of communication.
∑ It illustrates the levels of the management team (senior, middle and junior management).
∑ It illustrates the number of employees under a manager's control.
∑ It illustrates who makes the decisions and who carries out the orders and the instructions.
Small businesses are usually run by one or very few people and organised simply.
Larger organisations need a more formal organisational structure.
Organisation by Function
The business is organised by the jobs that the employees do.
FEATURES OF ORGANISATIONS
Authority: The power that someone has to make decisions
Subordinate: A worker that a line manager is responsible for
Chain of command: The link in the levels of authority from those at the top to those at the bottom
Delegation: When a manager gives a task to a subordinate to do
Formal group: Those groups set up by the organisation to carry out a function (e.g. production department)
Informal Group: Groups of people who meet but are not identified within the organisational chart
Hierarchy: When an organisation has different levels of authority from the top down
Line manager: A person who is directly responsible for other workers in the organisation
Role: the job (or function) that the worker performs
Span of control: The number of subordinates who report directly to the manager
You be able to understand the basic organisation of a company and be able to complete and interpret a simple organisational
chart.
You should be able to say how appropriate the structure is for the business. There may be a choice between a tall or a flat
structure
Advantages of tall structures
1. Clear lines of communication
2. Small spans of control
3. Opportunities for promotion
Advantages of flat structures
1. Communication from top to bottom is quick
2. It’s likely fewer mistakes in communication will be made
3. People at the bottom are encourages to share ideas with those at the top because they know who they are
4. Wider spans of control mean that managers must delegate more which may be motivational.
28

Marketing

MARKETING is the process identifying, predicting and satisfying consumers needs and wants.

A business can take two approaches to its marketing; Product orientated- Where a business designs a product then tries to sell it. Market orientated- Where a business finds out what consumers needs and wants are first.

Market Research

Most companies are market orientated so need to conduct market research to identify and predict consumer’s needs and wants.

Market segments

Businesses try to identify who their customers are by identifying the market segment that they are in. A market segment is a group of buyers with similar characteristics.

Ways of segmenting the market

Ways of segmenting the market

1. Personal characteristics such as

a. Age

b. Gender

c. Income

d. Ethnic Group

2. The location of the customers

3. The socio-economic group

4. The price of product

5. The quality or the purpose of the product.

Other ways include: repeat customers, impulse or planned purchases.

Research Methods Businesses can collect different types of data to identify these segments and their needs and wants.

1-

Field research: to collect primary data, e.g., questionnaires, interviews.

2-

Desk research: to collect secondary data, e.g., text books, old records and government statistics.

Primary Data Collected by field research, this data is new data

Methods of primary data collection include observation, test markets, market surveys (personal interviews, postal survey, telephone survey, consumer panel, through a newspaper).

Secondary Data Collected by desk research, this is adapted from other data

Methods of secondary data collection include published information such as annual reports, government surveys and census, past sales records.

Sampling methods Not all the population can be surveyed so a representative sample is taken (random, stratified or quota to reflect the consumers of the product).

This means the methods of collecting the data. There are different sampling methods.

Random sampling: giving everyone an equal opportunity to be chosen.

Stratified sampling: dividing the market into groups, then choosing randomly from each group.

Quota sampling: street interviews, the interviewer are biased towards choosing a particular group in terms or age, sex or social class.

Purposive sampling: interviewing on purpose only a certain group of people. The interviewer decides on the time and the place to interview potential customers.

Convenience sampling: the interview is carried out at the interviewer's own convenience.

 

38

Regulating Business Employment Law Government laws cover 1. Health and Safety legislation to protect employees

Regulating Business

Employment Law Government laws cover

1. Health and Safety legislation to protect employees and consumers when working at a business or using a businesses goods or facilities

2. Contracts of employment to provide security of employment for employees. If there is no actual contract the

Employment rights Act says that within 8 weeks a statement of the particulars of the job must be given within 8 weeks of starting.

3. Equal opportunities legislation such as:

a. race relations act

b. sex discrimination meaning all employees have to be treated equally

c. equal pay act (women have to be paid the same rate for the same job)

All these mean that it is illegal to discriminate against anyone when employing them and once they are employed. There should be no discrimination based on either gender, race, religion or disability.

4. National Minimum Wage: There is no a legal National Minimum Wage for employees over the age of 16.

5. Industrial Tribunals: Workers can go to independent tribunals to get a judgement if they believe that they have been treated unfairly. The judgements of these tribunals are legally binding.

6. Consumer protection: e.g. sale of goods act, consumer credit act

There are also organisations that protect workers

ACAS (Advisory Conciliation and Arbitration Service)

This organisation will help a business and its workers come to an agreement when there is a disagreement over pay, working conditions etc. Advice: First they just give advice to see if there is a solution Conciliation: Second it tries to find areas that both sides can agree on if negotiations have broken down Arbitration: Lastly it will appoint an arbitrator if they is no solution, the decision of which both sides have to abide by.

ACAS can find solutions and speed up the process, but firms or employees may get a solution that they do not want.

Usually arbitration is the last resort and shows that relationships between the employer and its employees have become very

bad.

Trade Unions

These are organisations which employees can join and will protect their rights. They deal with the employers on behalf of all their members (this is called collective bargaining) They can take industrial action if they are not happy. This can include

a. Strike

b. Work to rule

c. Overtime ban

Costs of industrial action

Costs to Workers

Costs to Customers

Costs to Firm

Cost to Economy

Lose Wages Firm could lose sales and make redundancies

Customers can’t get goods / services If the customers are firms then it will hurt their business as well

May lose output and profit May lose repeat custom

May stop economic growth (unemployment may rise) Less tax revenue

Single Union Agreement

Some firms that just one union should represent all the workers

Advantages

Disadvantages

1. Easier for the firm to negotiate with just one union 2. The workers are in a stronger position if they all act together

1.

The firm may find the union is in a very strong position

2.

Workers have no choice about who should represent

them

57

KEY TERMS Using the case study, define each of these key terms. Key Term Definition

KEY TERMS

Using the case study, define each of these key terms.

Key Term

Definition

Manufacturer

Warehouse

Distribution Centre

Market Segmentation

Retail Outlets

Mail Order

Independent Shoe Shops

Department Stores

Exporting

Founded

Public Limited Company

68

Retail Outlets Mail Order Independent Shoe Shops Department Stores Exporting Founded Public Limited Company 68

A substantial minority shareholding

 

Departments

 

National recruitment drive

 

Batches

 

Product Life Cycle

 

European Union

 

Adding Value

 

Workforce

 

Flexible workforce

 

Trade Union

 

Health & Safety issues

 

Imports

 

Competition

 
 

69

Marketing strategies Viability Labour costs are cheaper Hostile takeover Takeover Merger 70

Marketing strategies

Viability

Labour costs are cheaper

Hostile takeover

Takeover

Merger

Marketing strategies Viability Labour costs are cheaper Hostile takeover Takeover Merger 70

70

Marketing strategies Viability Labour costs are cheaper Hostile takeover Takeover Merger 70

All about divA PLC

Question

Answer

What kind of business is Diva PLC?

 

What sectors does Diva operate in?

 

Who are Diva’s customers?

 

Identify the main products offered by Diva to its customers

 

How does Diva generate revenue?

 

Describe the area in which the business is located.

 

What is Diva’s legal structure?

 

When was the firm established?

 

Who are the firm’s owners?

 

Who set up the business?

 

How many people are employed by Diva PLC?

 

Which methods of production do Diva PLC use?

 

Who are Diva’s main competitors?

 

Where are the suppliers located?

 

What type of organisation structure does Diva have?

 

Who is Terry Blake? What is his role?

 

What is Mark Staples trying to do?

 

Why has there been a loss in production?

 

What happened in the factory?

 

Which countries are competing with Diva?

 

What are the strategies offered to Diva’s internet customers?

 

Who are the company’s target market segments?

 

How many possible locations are there for Diva?

 

What has happened to Diva’s share price?

 

How much has internet shopping grown by, from 2004 to 2006?

 

71

CASE STUDY ANALYSIS DIVA (FOOTWEAR) PLC Case Study Topic Area Questions Diva (Footwear) plc is
CASE STUDY ANALYSIS
DIVA (FOOTWEAR) PLC
Case Study
Topic Area
Questions
Diva (Footwear) plc is a successful
manufacturer
. Its
factory,
warehouse, distribution centre and offices
are on an industrial
Industrial sectors- primary,
secondary tertiary
estate on the outskirts of Brunham, a densely populated, industrial
city.
Location- the current location
of the factory
Which sector of the
economy does Diva PLC
fall into – primary,
secondary or tertiary?
Justify your answer.
Is Diva a private sector
or a public sector
organisation? Explain
your answer.
Diva plc makes shoes and boots for both men and women using
Product Range
leather and man-made materials. It offers a
range
of styles and
Describe the main
benefits of market
prices aimed at many
different sections of the market
for footwear
Market segmentation
(see Resource Sheet 1).
segmentation for a firm
such as Diva PLC
Identify two ways of
segmenting the shoe and
boot market.
Using the brand name, Diva, the company sells its products to
independent shoe shops, department stores and other retail
Place- Channels of
distribution
outlets. It also operates a profitable mail order business selling
through monthly catalogues and an Internet website
. Diva plc has
Imports/ Exports
a very
small export market
. It is noticeable that, over the past two
Describe one advantage
and one disadvantage to
Diva of using the firm’s
website as a promotional
tool.
years, an increasing percentage of its sales are coming from
E-commerce
customers
shopping on the Internet
(see Resource Sheet 2). This
is likely to continue to increase.
Examine two ways, other
than the firm’s website,
that might be used to
promote the business.
Using Resource Sheet 2,
describe the changes that
have taken place over the
two year period
What are the main
changes- why do you
think that this is the case?
Diva plc has always been based in Brunham and has maintained
Stakeholders
good relations with the local community. The business was
founded by James Diva in 1907
. He started his business in an old
Enterprise skills
Describe two reasons
why James might have
established Diva in 1907
shed behind a row of shops. Now Diva plc is a
public limited
company. His great granddaughter, Joanna Diva, is the Managing
Public Limited Companies
Director of the company and other members of the family still
have a
substantial minority shareholding in the company.
Private Limited Companies
Describe two advantages
and disadvantages to Diva
from being a PLC
What problems could the
owners of Diva
experience themselves
from operating as a Sole
Trader?
Explain why changing to a
public limited company
72
assisted Diva’s expansion. State two internal stakeholders of Diva and briefly explain their interest in
assisted Diva’s expansion.
State two internal
stakeholders of Diva and
briefly explain their
interest in the business.
State two external
stakeholders of Diva and
briefly explain their
interest in the business.
The company is organised into six departments as shown in Fig. 1.
Organisation structures
Functional organisation
Span of control/ chain of
command
Diva has a flat
organisation structure.
Examine the main
advantages and
disadvantages of
organising the business in
this way.
Management/ leadership styles
Diva has a functional
organisation structure.
Examine the main
advantages and
disadvantages of
organising the business in
this way.
Comment upon the chain
of command and span of
control that Joanna Diva
has
Who is Joanna Diva
accountable to? Who is
she accountable for?
Diva plc employs about 600 people, most of whom work in the
manufacturing and distribution departments
. It
recruits
employees
Changing work patterns,
primary/secondary/tertiary
from the
local area
. Most of its employees have worked for the
company for many years. Diva plc has a reputation for being a
Recruitment & Selection
caring and considerate employer
. It has, however, recently
Explain why Diva PLC
may have produced a job
description and a person
specification for each
vacancy
undertaken a successful national recruitment drive to find two
new designers.
Recruitment from the local
area
Investors in people?
Identify two ways in
which the vacancies may
have been advertised.
Why might Diva PLC
have required applicants
to complete a standard
application form?
Give one advantage and
one disadvantage of using
an interview to select
from a list of candidates
Describe two different
methods that might be
73
used to pay staff at Diva State the main legislation that Diva must bear in
used to pay staff at Diva
State the main legislation
that Diva must bear in
mind when recruiting
new staff.
Explain, using examples,
what is meant by the
term, unfair dismissal.
The shoes and boots are made in
batches
. Some very popular
Batch Production
traditional styles are made for several years. Other ranges, usually
the more fashionable with a shorter
product life cycle,
are made in
Product Life Cycle
small quantities. Some
styles are made only when orders are
received from shops
, and this is now causing problems for Diva
Job Production
Describe two ways in
which Diva is likely to
benefit from the
manufacturing technology
it uses.
plc.
Describe the methods of
production that are used
within Diva PLC
Analyse the advantages
and disadvantages of
batch production to Diva
PLC
Why is Job production
causing problems for
Diva PLC
What is meant by a
product life cycle
Why are products with a
shorter life cycle made in
small quantities?
The treated leather and other materials are bought in from a
Channels of distribution
number of suppliers, often small businesses
. Most of these
Explain how Diva adds
value for their customers.
suppliers are located in and around Brunham and some are in
other
European Union countries
. Diva plc
adds value
to these raw
The impact of the EU/ buying
and selling with the EU
materials in a number of different ways before the shoes and
boots are sold to the shops and individual customers.
Adding value through
production
Explain the impact of a
fall in exchange rates on
demand for Diva.
Explain the impact of an
increase in exchange
rates for Diva.
What are the advantages
of trading with EU
countries?
How has the EU allowed
for better trade between
foreign countries and the
UK?
Terry Blake, the Purchasing Manager, has been asked to review
the purchasing policy of the company in an attempt to cut costs.
His findings will be reported to Joanna Diva, the Managing
Changing suppliers
Objectives
Director.
Terry’s main aim when buying supplies has always been
to obtain value for money. Should he change this strategy?
Terry’s main aim when
buying supplies has always
been to obtain value for
money. Should he change
this strategy?
74
As part of his review he is considering: Should he be making more use of

As part of his review he is considering:

Should he be making more use of overseas suppliers?

Should he make use of recyclable materials?

Show might he take advantage of economies of scale?

Would finding another means of packaging to replace the traditional shoe box give the company a competitive edge?

traditional shoe box give the company a competitive edge? The new Manufacturing and Design Manager, Mark

The new Manufacturing and Design Manager, Mark Staples, plans

to introduce

changes to working practices

in the factory to cut

costs
costs

. These involve

training workers in a wider range of skills

and

the increased use of computers in the manufacturing process so

that the workforce will become more

think carefully about how to

workforce. These changes are likely to meet with some opposition

from the employees, most of whom belong to a

flexible communicate
flexible
communicate

. Mark will need to

these changes to the

trade union .
trade union
.

75

Mark will need to these changes to the trade union . 75 Changing working practices Costs-
Mark will need to these changes to the trade union . 75 Changing working practices Costs-
Mark will need to these changes to the trade union . 75 Changing working practices Costs-

Changing working practices

Costs- cutting costs

Re-skilling

Flexible workforce

Communication

Trade Unions

Flexible workforce Communication Trade Unions As part of his review he is considering: Should he be
Flexible workforce Communication Trade Unions As part of his review he is considering: Should he be

As part of his review he is considering:

Should he be making

more use of overseas suppliers? Should he make use of

recyclable materials? Show might he take

advantage of economies of scale? Would finding another means of packaging to replace the traditional shoe box give the company a competitive edge?

traditional shoe box give the company a competitive edge? Examine the impact of changing working practices

Examine the impact of changing working practices on the staff at Diva

Examine the impact of changing working practices on the business

What is meant by a flexible workforce?

Suggest methods which could be used to communicate the changing working practices

What is a trade union?

What is a trade union’s main purpose?

Suggest a response that the trade union may have to Diva PLC

Describe the advantages and disadvantages of being part of a trade union

Why would a trade union be interested in this matter?

What is meant by the term re-skilling?

Describe two appropriate training methods which could be used by Diva PLC

Why might on the job

the term re-skilling? Describe two appropriate training methods which could be used by Diva PLC Why
training be an appropriate form of training for Diva PLC Why might Diva PLC prefer
training be an appropriate
form of training for Diva
PLC
Why might Diva PLC
prefer to use an off the
job training policy?
What are the advantages
of re-skilling to Diva
PLC?
Recently there has been a marked increase in
absenteeism
in the
Absenteeism
factory resulting in a loss of production. The Human Resources
Manager, Beatrice Rahman, is investigating the reasons for this
Kaizan
problem.
She will be bringing suggestions on how to improve
Examine the likely
consequences for Diva of
failing to resolve the staff
problems
attendance at work and increase productivity to the next
Increasing productivity
management meeting for discussion
.
What is meant by the
term Kaizan?
How could Kaizan be
used at Diva PLC?
How could Beatrice
improve productivity?
How could Beatrice
improve attendance
issues at Diva?
A week ago there was
an accident
in the warehouse. Some
Health & Safety
shelving was overloaded and toppled over. One of the storemen
was trapped and broke his arm and two ribs. Clare Mitchell, the
The welfare of staff
Distribution and Warehouse Manager, needs to look at
health and
What legislation is in
place to protect
employers and employees
at work?
safety issues in the warehouse as a matter of urgency.
Describe who is
responsible for health and
safety at Diva PLC
How could should health
& safety policies be
communicated?
What is the possible
impact of this health and
safety issue on Diva PLC?
Give two examples of
Diva’s responsibilities to
its employees under the
Health and Safety at
Work Act (1974).
Give two examples of the
responsibilities of Diva’s
staff under the Health
and Safety at Work Act
(1974).
Explain how the Health
and Safety Executive
ensures that legislation is
76
competitive Quality footwear made The UK market for shoes and boots is becoming more and
competitive Quality footwear made The UK market for shoes and boots is becoming more and
competitive Quality footwear made The UK market for shoes and boots is becoming more and
competitive
competitive

Quality footwear made

competitive Quality footwear made The UK market for shoes and boots is becoming more and more
competitive Quality footwear made The UK market for shoes and boots is becoming more and more
competitive Quality footwear made The UK market for shoes and boots is becoming more and more
competitive Quality footwear made The UK market for shoes and boots is becoming more and more
competitive Quality footwear made The UK market for shoes and boots is becoming more and more
competitive Quality footwear made The UK market for shoes and boots is becoming more and more
competitive Quality footwear made The UK market for shoes and boots is becoming more and more
competitive Quality footwear made The UK market for shoes and boots is becoming more and more

The UK market for shoes and boots is becoming more and more

. There is keen competition among UK manufacturers.

 

in Italy, Germany, Brazil, Spain and the

USA is selling well in the UK. Many types of footwear are now

being imported from Asia and Eastern Europe in increasing

 

quantities. A recent newspaper headline read:

 
quantities. A recent newspaper headline read:   UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD
quantities. A recent newspaper headline read:   UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD
quantities. A recent newspaper headline read:   UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD

UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD

UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of
UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of
UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of
UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of
UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of
UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of
UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of
UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of
UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of
UK MANUFACTURERS SQUEEZED BY INCREASED IMPORTS FROM ABROAD This has raised alarm among the managers of

This has raised alarm among the managers of Diva plc who are wondering how much the company might be affected.

who are wondering how much the company might be affected. Diva plc has always prided itself
who are wondering how much the company might be affected. Diva plc has always prided itself
who are wondering how much the company might be affected. Diva plc has always prided itself

Diva plc has always prided itself on the

its

mail order and Internet

customers:

itself on the its mail order and Internet customers: in the footwear market. quality of its

in the footwear market.itself on the its mail order and Internet customers: quality of its footwear and its ability

quality of its footwear and

its ability to provide good design and, at the same time, comfort. As part of its selling strategy, the company offers the following to

of its selling strategy, the company offers the following to Diva plc is wondering whether this
of its selling strategy, the company offers the following to Diva plc is wondering whether this

Diva plc is wondering whether this strategy is sufficient to remain

is wondering whether this strategy is sufficient to remain promotional campaigns The Sales and Marketing Department

promotional campaigns

this strategy is sufficient to remain promotional campaigns The Sales and Marketing Department has used a
this strategy is sufficient to remain promotional campaigns The Sales and Marketing Department has used a

The Sales and Marketing Department has used a number of

during the last two months to increase

direct sales to individual customers. These have included:

Ordering any pair of men’s and any pair of women’s shoes and receiving £20 off the total order value

women’s shoes and receiving £20 off the total order value 77 Level of competition/ impact of
women’s shoes and receiving £20 off the total order value 77 Level of competition/ impact of

77

shoes and receiving £20 off the total order value 77 Level of competition/ impact of competition
shoes and receiving £20 off the total order value 77 Level of competition/ impact of competition
shoes and receiving £20 off the total order value 77 Level of competition/ impact of competition

Level of competition/ impact of competition

The impact of globalisation

Global markets

Imports/ exports

impact of globalisation Global markets Imports/ exports Quality E-commerce Promotional methods Customer service
impact of globalisation Global markets Imports/ exports Quality E-commerce Promotional methods Customer service

Quality

E-commerce

Promotional methods

Customer service

Quality E-commerce Promotional methods Customer service Level of competition Marketing: Promotional activities

Level of competition

Promotional methods Customer service Level of competition Marketing: Promotional activities implemented by

Marketing: Promotional activities

Level of competition Marketing: Promotional activities implemented by businesses. Explain how the business
Level of competition Marketing: Promotional activities implemented by businesses. Explain how the business

implemented by

businesses.

Explain how the business would be affected by the 1992 Workplace Regulations.

would be affected by the 1992 Workplace Regulations. What is meant by “The UK market for

What is meant by “The UK market for shoes and boots is becoming more and more competitive”?

What is the significance of the newspaper headline to the UK economy?

significance of the newspaper headline to the UK economy? What is the impact of this headline

What is the impact of this headline upon Diva PLC?

Why are products being imported from abroad?

Diva PLC? Why are products being imported from abroad? What is meant by “quality footwear”? How
Diva PLC? Why are products being imported from abroad? What is meant by “quality footwear”? How

What is meant by “quality footwear”?

How could Diva PLC ensure good quality products are produced?

What are the advantages and disadvantages of using E-commerce to Diva PLC?

Why are the strategies identified in Fig. 2 not extended to Diva’s other customers?

in Fig. 2 not extended to Diva’s other customers? Suggest other strategies which the business could

Suggest other strategies which the business could offer it’s customers

Why is it important that firms like Diva obtain regular feedback from customers?

Comment upon Diva’s 48hour despatch policy

Comment upon Diva’s 7 day opening policy to internet customers

upon Diva’s 7 day opening policy to internet customers Design a promotional campaign for Diva PLC,

Design a promotional campaign for Diva PLC, taking into account the

4P’s

7 day opening policy to internet customers Design a promotional campaign for Diva PLC, taking into
Giving a free leather wallet with every order Ordering three pairs of shoes or boots
Giving a free leather wallet with every order
Ordering three pairs of shoes or boots and getting one
pair free of charge
Offering a voucher for £5 if an order is made within 14
days of receipt of catalogue.
Why do you think the
scratch card idea has
failed to produce a
response?
How could this idea be
improved?
The most
recent promotion is shown in Resource Sheet 3. It has
been a failure and produced very little response.
Evaluate the scratch card
idea as a method of
promotion to Diva PLC
Market research has indicated that Diva plc’s main
market
Market segmentation
segments
are:
Promotional activities for
market segments
For each of the segments
identified in Fig. 3, suggest
a marketing strategy
which could be used to
effectively target the
market
The Sales and Marketing Manager, Gary Simms, has been asked to
devise
marketing strategies for each of these main market
segments.
As competition increases, the Board of Directors has been
Market share
considering ways of maintaining Diva plc’s UK
market share
. It has
What is meant by market
share?
noticed the success of factory shops sited either on factory sites
Marketing Mix: Place
or close to the factory, or in an
‘outlet village’
. It is making plans
to open a factory shop in May 2008.
How can a business
measure it’s market
share?
What is an ‘outlet village’?
Three possible sites
for the factory shop are available around
Location
Brunham as shown in Resource Sheet 4 (a) and (b). The Finance
Manager, Robin Ho, has prepared a
cash flow forecast for the
Cash Flow Forecast
project (see Resource Sheet 5). The Board of Directors will need
to decide on the site at its next Board meeting so that the shop
can open on time. The Board of Directors will also have to decide
Using resource sheet 4,
carry out a SWOT
analysis of each of the
locations suggested
Sources of finance
Which location is most
on possible
sources of finance
if Site C is chosen. There may also
be the need for some short-term finance to cover set-up costs of
£75 000 whichever site is chosen.
suitable for Diva PLC-
why?
What is a cash flow
forecast?
What are CFF’s used for?
Which stakeholders may
be interested in a CFF?
Adjust the cash flow
forecast to include:
set up costs of
£75,000
rental of site B
Interest payment
for site C
Conversion
costs for site A
78
The Managing Director of Diva plc, Joanna Diva, is soon to report on the viability
The Managing Director of Diva plc, Joanna Diva, is soon to report on the viability
The Managing Director of Diva plc, Joanna Diva, is soon to report on the viability

The Managing Director of Diva plc, Joanna Diva, is soon to report

on the

viability of continuing to manufacture footwear in Brunham

as costs increase

. She has been considering the possibility of

gradually reducing manufacturing on the Brunham site and moving

the company’s manufacturing to a factory in

another European

company’s manufacturing to a factory in another European country where labour costs are cheaper. She is

country where labour costs are cheaper. She is aware of the many

problems such a move might bring.

The Board of Directors will

need to take this report into consideration when discussing the

site of the factory shop.

 
when discussing the site of the factory shop.   The Board of Directors is somewhat concerned

The Board of Directors is somewhat concerned about the

fluctuating value of the company’s

share price
share price

as shown in Fig. 4.

value of the company’s share price as shown in Fig. 4. The Board of Directors is

The Board of Directors is worried that a

may be launched by either a UK company or one of Diva plc’s competitors abroad.

takeover bid

for Diva plc

plc’s competitors abroad. takeover bid for Diva plc In this, the centenary year of the company,

In this, the centenary year of the company, the Board of Directors has been looking at the long-term prospects of Diva plc. The following proposals have been suggested to make sure that Diva plc is successful in the future:

Opening Diva retail shops in some major UK cities

Seeking an amalgamation or merger with another UK

company Moving the company’s manufacturing to a factory in

79

Moving the company’s manufacturing to a factory in 79 Viability of the business Long term planning/
Moving the company’s manufacturing to a factory in 79 Viability of the business Long term planning/
Moving the company’s manufacturing to a factory in 79 Viability of the business Long term planning/

Viability of the business

Long term planning/ objectives The EU

Location of business

Long term planning/ objectives The EU Location of business Share price Integration/ Mergers/ Takeovers/ Hostile

Share price

Integration/ Mergers/ Takeovers/ Hostile takeover

price Integration/ Mergers/ Takeovers/ Hostile takeover The future plans/ long term viability of the business

The future plans/ long term viability of the business

The future plans/ long term viability of the business Discuss appropriate sources of finance to the
The future plans/ long term viability of the business Discuss appropriate sources of finance to the

Discuss appropriate sources of finance to the business

Which source of finance would be most appropriate if Site C is chosen?

of finance would be most appropriate if Site C is chosen? Why might Joanna want to

Why might Joanna want to move to the EU? What are the advantages and disadvantages of this to Diva?

How can E-commerce help the business to move to the EU?

Why should Joanna use market research to investigate the possibility of moving to the EU?

research to investigate the possibility of moving to the EU? Describe the changes that have taken

Describe the changes that have taken place over a two year period to Diva’s share price?

Explain why Diva’s share price may have fakllen over time

What is the impact of a falling share price on Diva PLC?

What is meant by a takeover?

What is meant by a hostile takeover?

Evaluate the advantages and disadvantages to Diva of being taken over by a foreign competitor

Why would a foreign competitor be interested in Diva?

Why would a foreign competitor be interested in Diva? Should Diva continue as a PLC or

Should Diva continue as a PLC or allow a foreign takeover.

What would the advantages be to Diva of a merger rather than a takeover by a foreign

a PLC or allow a foreign takeover. What would the advantages be to Diva of a
another European country competitor? Are there other options that the Board of Directors might consider?
another European country
competitor?
Are there other options that the Board of Directors
might consider?
There are important decisions to make in the next few months.
What strategy should
Diva adopt to expand the
business further?
Evaluate each of the
options that Diva has
The Structure of the Exam
The case study exam will consist of seven compulsory questions based on the Diva PLC case study.
You are not allowed to take notes or annotated versions of the case study into the exam (shame!). You
will be given a clean copy of the case study with the questions themselves before you begin. However, you
should aim to be really up to speed with the contents of the case study before you enter the exam hall.
You will not have time to read it thoroughly and take in all of the information it contains during the exam
itself, but you may need to refer to it occasionally if you need to check something. It is vital that you use
the time allowed during the exam to focus all of your efforts on producing good quality and well thought
out answers.
Your exam paper is worth 120 marks in total. Remember that 8 of these are awarded for the quality of
your written communication. It is important, therefore, that you concentrate on producing clear and
accurate answers that make effective use of suitable business terms and theories. Make sure that you can
spell these terms properly and understand what they all mean as part of your revision. Finally, don’t forget
to use proper sentences (and paragraphs, where necessary) to structure your answers.
Some top tips for during the exam:
Do read the questions set – at least twice – to make sure you understand what you are being asked
to do.
Do underline the command word in each question, so you know whether you need to define,
apply, analyse or evaluate.
Do answer the question set by the examiner, and not attempt to fit a really good answer to a
similar question you did for homework.
Do write in full sentences, not bullet points.
Do allocate your time effectively – use the mark allocation as a guide – so that you get chance to
answer all of the questions on the paper.
Good luck!
80

Motivation- Practice Questions

SECTION ONE: Questions

1) Why is it important to have motivated staff?

1

2

3

4

Believe it or not… Money is isn’t the only reason that people go out to work. Abraham Maslow suggested that there are non- financial reasons. He called these the ‘Hierarchy of needs’

2) There are five stages in Maslow’s Hierarchy of Needs. Label the diagram below

in Maslow’s Hierarchy of Needs. Label the diagram below 3) Complete the following paragraph… In a

3) Complete the following paragraph…

In a hierarchy the things at the ………………….are more important than those at the

………………………. Maslow said the lower levels have to be satisfied ……………………

Only when

these needs have been satisfied will the individual strive to satisfy the ……………………

needs. For

example, hungry, cold people will seek ……………………………………… first. Once they are well fed and comfortable, they will turn their attention to …………………………………………, for example the pleasure of being with colleagues. But there is of the course the financial reward for working!

4) Write a definition for the following methods of payment…

Time rate or 'wages'

Piece rate

Overtime

Shift payments

Bonus payments

Profit sharing

82

There are also ‘extras’ that can be paid above the normal wages

5) What is a loyalty bonus? How do you get one?

6) (i) What is a perk of the job?

(ii) Give TWO examples of perks

SECTION TWO: Practice Exam Question

You are the Human Resources Manager of a large company. Many of the workers are unhappy and are looking for new jobs. Recent figures show productivity (output) has fallen.

You know that the Managing Director has said there will be no wage increases this year.

What improvements could you suggest at the next management meeting which would improve motivation and productivity?

 

(10 Marks)

SECTION THREE: Other Motivation Theorists

Other theorists have other ideas about what motivates people. Examples are Herzberg, McGregor, Mayo and Taylor. Carry out some research on the internet to find out about one of these theories. Then put together a PowerPoint presentation, answering the following questions….

Who is the theory by? Give some background about the theorists, who they are, what they do, etc What is the basic idea of the theory? Does this theory work on financial or non-financial motivators?

 

83

Case Study: Should the Barton Line Close? Barton is a seaside town with a population
Case Study: Should the Barton Line Close?
Barton is a seaside town with a population of 50,000. It is at the end of a railway link,
linking it to the city of Runswick, 25 miles away. The road link between Barton and
Runswick is poor and less direct than the railway because there is no road crossing of
the Barr estuary. The rail link is currently making an annual loss of £500,000 and it’s future
is under consideration
A group of residents, hearing that the line was under threat, formed the ‘Save the
Barton Line Society’. These were the points that they put forward to the rail operating company
in
favour of keeping the line open.
∑ Closure of the line would mean increased journey times by road. Many people commute to
Runswick and the increased journey time by road would make this very difficult. This could add to
the already high unemployment in the area
∑ Many tourists and day-trippers come to Barton by rail and the closure of the line would mean a
decline in the tourist trade and a loss of jobs in the tourist industry
∑ The cost of improving the road system would be equal to the current losses on the rail for at least
five years
1) What are the social costs of closing the rail link?
Answer….
2) Why would a private company close the line?
Answer….
3) Why might the rail operator keep the line open?
Answer….
4) Who might be interested in this joint arrangement and why?
Answer….
5) Write a letter or design a poster from the perspective of a local resident protesting the
closure of the railway
Extension:
Explain how the following businesses might bring social costs to the local area:
∑ A Chemical Works
∑ A Large Car Plant
∑ A Night Club
∑ A Fish & Chip Shop
∑ A Hypermarket
Why do businesses like to use Greenfield sites?
Why are people in the local community often against businesses using Greenfield Sites?
How does a business bring social costs to an area when it closes down?
85
Business Basics- Practice Questions TEXT 1 Jack’s Café is a partnership owned by Luke and
Business Basics- Practice Questions
TEXT 1
Jack’s Café is a partnership owned by Luke and Sally. It is situated in Milton Keynes.
Luke and Sally felt that Jack’s Café would be successful because they had:
∑ completed market research
∑ a wide range of business skills
Luke had invested £10,000 and Sally had invested £2,000 in setting up Jack’s Café
1
Select a word from the list below and write it in the correct place in the passage.
* argument
* Deed
* jointly
* limited
* own
* debts
* salary
* skills
As a partnership Luke and Sally ………………………. Jack’s Café. The partners
………………………. own the business. As owners they have a shared responsibility
for the business
Luke and Sally have a ……………………….
of Partnership which shows how much money each is going to invest and what
happens if Luke and Sally have an
2
Refer to TEXT 1.
Jack’s Café is a partnership with unlimited liability. Explain the term unlimited liability.
Unlimited liability is …………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
3 Refer to TEXT 1.
(a) Name the partner who is likely to get more of the profit made by Jack’s Cafe
………………………………………………………………………………………………………
(b)
Explain why the partner you have named is likely to get more of the profit.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
4
Refer to TEXT 1.
Explain how being a partnership could affect Jack’s Café in the following situations.
(a) Obtaining finance from a local bank. ………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
(b)
Luke’s position should Sally want to leave the partnership. …………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
86

TEXT 2 mk Catering Supplies Ltd is a private limited company. It makes food catering products and supplies them to businesses such as Jack’s Café.

5

Refer to TEXT 2.

Listed below are some of the business activities that are carried out by mk Catering Supplies Ltd. Beside each activity identify if it involves a product or providing a service.

Write product or service in each space provided

a)

Delivering burgers to Jack’s Café …………………………………………………………

b)

Preparing the burgers

…………………………………………………………

c)

Baking bread

…………………………………………………………

d)

Sending a price list to Jack’s Café …………………………………………………………

6

Refer to TEXT 2

State two advantages to mk Catering Supplies Ltd of being a private limited company.

Advantage 1 ………………………………………………………………………………………

………………………………………………………………………………………………………

Advantage 2 ………………………………………………………………………………………

………………………………………………………………………………………………………

TEXT 3 Jack’s Café is located near the end of a busy main street in Milton Keynes. Other businesses situated around Jack’s Café are:

Hilfords - a car parts franchise Arrods - a national chain store that sells everything from clothes to electrical goods MickBurgers - a fast food franchise selling a wide range of food The Pound Store sells all sorts of goods for only £1 MK Building Society - offers mortgages and banking services to the residents of MK Wash and Glow - an automatic car wash

7

Refer to TEXT 3

(a)

Name the competitor of Jack’s Café ……………………………………………………

(b)

Explain why the business named in part (a) is the main competitor of Jack’s Café

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

 

87

Luke and Sally realise that competitors can have a real effect on the way they operate their business. Select a word from the list below and write it in the correct place:-

8

 
 

* improve

*

liability

*

limited

* partnership

*

provide

 

*

reduce

*

technology

Competition has made Luke and Sally ………………………………. prices on some

 

of their popular products. They are always looking to ………………………………. the

 

quality of their goods. Each month they try to ………………………………. new ranges.

They have been able to cut their business costs by introducing new

 

………………………………. like computers.

 

9 Listed below are reasons why Jack’s Café is located near the end of MK’s main street. Explain why each of these reasons is an ADVANTAGE to the business.

 

(a) MK’s only car park is situated near to Jack’s Café at the far end of the main street

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

(b)

Luke and Sally only pay a low rent for the building

 

………………………………………………………………………………………………………

 

………………………………………………………………………………………………………

………………………………………………………………………………………………………

(c) MK is the busiest town in the area

 

………………………………………………………………………………………………………

 

………………………………………………………………………………………………………

………………………………………………………………………………………………………

 

TEXT 4

mk Catering Supplies Ltd has a number of stakeholders. Stakeholders are individuals or businesses that could affect mk Catering Supplies Ltd.

 
 

88

Forms of Ownership 2- Practice Questions Section A: Marks out of 15 1) Who owns
Forms of Ownership 2- Practice Questions
Section A: Marks out of 15
1) Who owns public sector businesses?
[1]
2) Give TWO examples of public sector businesses
[2]
3) State TWO features of a sole trader
[2]
4) What is the minimum and maximum number of partners allowed in a partnership?
[2]
5) What does unlimited liability mean?
[1]
6) What do the letters LTD after the name of a business tell you?
[1]
7) What do the letters PLC stand for?
[1]
8) State three documents which have to be filed with the registrar of companies when forming a company
[3]
9) State TWO types of co-operative
[2]
Section B: Marks out of 27
10) Which THREE statements apply to public limited companies? (Tick boxes)
The name of the company is followed by the letters ‘plc’
The maximum number of number of shareholders is 20
Shares cannot be sold to members of the general public
They are owned by the government on behalf of the public
The name of the company is followed by the letters ‘ltd’
Shares are sold on the stock exchange
They have a minimum share capital of £50,000
They have unlimited liability
[3]
11) Below is a list of features of different types of businesses. Select the FOUR which USUALLY apply to
general partnerships.
General partnerships usually:
Are owned by one person
91