0450 Business Studies March 2025 Question paper 12

Amir and Carla are business partners. They own a luxury hotel which operates in a niche market. The business has a short hierarchical structure. Amir and Carla use Herzberg’s theory of motivation 1 to keep their 5 employees well motivated. Amir and Carla are considering opening another hotel in a different city. They will need to identify a suitable source of finance if they decide to expand. Secondary market research can be used to help a business decide whether it should expand. Identify two motivators from Herzberg’s theory of motivation. (a) Motivator 1: Motivator 2: [2] Identify two features of a short hierarchical structure. (b) Feature 1: Feature 2: [2] Outline two advantages to Amir and Carla of operating in a niche market. (c) Advantage 1: Advantage 2: [4] , , Explain two sources of finance Amir and Carla could use if they decide to expand. (d) Source 1: Explanation: Source 2: Explanation: [6] Do you think secondary market research is the most appropriate type of market research for a business to use when deciding whether it should expand? Justify your answer. (e) [6] , ,

Rachel’s business produces and sells chocolate bars. Quality is important. Rachel is a sole trader who received government support when she started up her business. The business operates in a 2 competitive market. Rachel is considering ways to increase sales of her best-selling product. She is also planning to introduce a new chocolate bar. Rachel knows deciding which pricing method to use for a new product is important. Define ‘sole trader’. (a) [2] Identify two ways a government can support business start-ups. (b) Way 1: Way 2: [2] Outline two ways Rachel could increase sales of her best-selling product. (c) Way 1: Way 2: [4] , , Explain two reasons why quality is important to Rachel’s business. (d) Reason 1: Explanation: Reason 2: Explanation: [6] Do you think price skimming is the best pricing method for a business to use when introducing a new product? Justify your answer. (e) [6] , ,

TJK manufactures candles. Contributing to sustainable development is important to TJK. The business uses batch production in its factory in country X. The target market for TJK’s products is 3 females between 20 and 50 years of age. The Managing Director is reviewing TJK’s financial data. An extract is shown in Table 3.1. He is also considering the benefits to a business of becoming a multinational company. Table 3.1 Extract from TJK’s financial data for 2024 $000 900 Working capital 400 Profit 1000 Revenue Define ‘working capital’. (a) [2] Calculate TJK’s profit margin. Show your working. (b) Working: Final answer: [2] Identify four benefits to a business of becoming a multinational company. (c) Benefit 1: Benefit 2: Benefit 3: Benefit 4: [4] , , Explain two ways TJK could contribute to sustainable development. (d) Way 1: Explanation: Way 2: Explanation: [6] Do you think batch production is the best method of production for a business to use? Justify your answer. (e) [6] , ,

SEP operates in the tertiary sector. As a social enterprise, SEP has many objectives. It collects old books from libraries and schools and sells them to customers at a low price. SEP provides training 4 for its 10 part-time employees. SEP’s manager wants to know how the introduction of a legal minimum wage might affect a business. Identify two services provided by businesses in the tertiary sector. (a) Service 1: Service 2: [2] Identify two objectives a social enterprise might have. (b) Objective 1: Objective 2: [2] Outline two benefits to SEP of having part-time employees. (c) Benefit 1: Benefit 2: [4] , , Explain two reasons why training is important to SEP. (d) Reason 1: Explanation: Reason 2: Explanation: [6] Do you think the introduction of a legal minimum wage will always have a negative effect on a business? Justify your answer. (e) [6] , ,