0450 Business Studies June 2025 Question Paper 13

MDZ manufactures a range of chocolate bars. It has 300 employees. MDZ purchases its ingredients from suppliers in the local area. Acting in an ethical way with its stakeholder groups is important. 1 MDZ has products at different stages of the product life cycle. The business is also developing a new product. The Marketing Director needs to make decisions about the packaging and the price of the new product. She knows it is important for a business to use a suitable method of sales promotion for a new product. Identify two roles of packaging. (a) Role 1: Role 2: [2] Identify two stages (other than development) of the product life cycle. (b) 1: 2: [2] Outline two factors MDZ’s Marketing Director should consider when deciding the price of the new product. (c) Factor 1: Factor 2: [4] , , Explain one way MDZ could act in an ethical way with each of the following stakeholder groups: (d) Employees: Explanation: Suppliers: Explanation: [6] Explain two possible methods of sales promotion a business could use for a new product. Which is likely to be the best method to use? Justify your answer. (e) [6] , ,

Jonathon is a sole trader. He owns a shop selling office equipment including printers. To encourage sales Jonathon allows customers 4 weeks to pay for the office equipment. Jonathon thinks his 2 business is likely to remain small. He knows managing cash flow is important for his business and he has prepared a cash flow forecast. An extract is shown in Table 2.1. Table 2.1 Extract from Jonathon’s cash flow forecast July - September 2025 ($000) September August July Y 80 60 Cash inflow 70 95 90 Cash outflow 20 X (30) Net cash flow (25) (10) 20 Opening balance (5) (25) (10) Closing balance Identify two ways to measure the size of a business. (a) Way 1: Way 2: [2] Calculate X and Y. (b) X: Y: [2] , , Outline two reasons (other than finance) why Jonathon’s business is likely to remain small. (c) Reason 1: Reason 2: [4] Explain two reasons why Jonathon’s business might have a cash flow problem. (d) Reason 1: Explanation: Reason 2: Explanation: [6] , , Do you think the advantages of operating as a sole trader business are greater than the disadvantages? Justify your answer. (e) [6] , ,

GAE is a multinational company. It manufactures steel. GAE has 2400 employees and has factories in 4 countries. The business regularly introduces new technology. Holding inventory is important. 3 GAE’s directors are planning to build a new factory and want to know how legal controls over location might affect this decision. The Managing Director said, ‘The new factory will create many external benefits.’ Define ‘external benefits’. (a) [2] Identify two ways legal controls over location might affect a business. (b) Way 1: Way 2: [2] Outline two advantages to GAE of introducing new technology. (c) Advantage 1: Advantage 2: [4] , , Explain two reasons why holding inventory might be important for GAE. (d) Reason 1: Explanation: Reason 2: Explanation: [6] Explain two benefits to a business of being a multinational company. Which benefit is likely to be the most important? Justify your answer. (e) [6] , ,

HYT is a travel business which sells holidays. One of its objectives is growth. Last year HYT completed a takeover of one of its competitors. External sources of finance were used to fund this 4 growth. HYT now has 460 shops and 4000 employees. The Human Resources Director knows there are benefits and limitations for a business of having full-time employees. HYT’s managers use ideas from Herzberg’s motivational theory to keep employees motivated. Good internal communication is important for HYT. Identify two objectives (other than growth) a business might have. (a) Objective 1: Objective 2: [2] Identify two advantages to a business of using external sources of finance. (b) Advantage 1: Advantage 2: [2] Using Herzberg’s theory, state whether each of the following would be classed as a hygiene factor or as a motivator. (c) Working conditions: Wages: Opportunities for promotion: Relationship with supervisor: [4] , , Explain two methods of internal communication HYT might use with its employees. (d) Method 1: Explanation: Method 2: Explanation: [6] Do you think the benefits to a business of having full-time employees are greater than the limitations? Justify your answer. (e) [6] , ,