0450 Business Studies November 2025 Question Paper 13

KPX manufactures computers. The business imports 60% of its raw materials. The Operations Director is considering ways to use lean production methods in KPX’s factory. The Finance Director 1 is reviewing KPX’s financial data to calculate the value of its expenses. An extract is shown in Table 1.1. Table 1.1 Extract from KPX’s financial data for 2024 ($ million) 750 Revenue 360 Cost of sales 390 Gross profit 90 Profit Identify two reasons why a business might import raw materials. (a) Reason 1: Reason 2: [2] Calculate KPX’s expenses in 2024. Show your working. (b) Working: Final answer: [2] Outline two ways KPX’s Finance Director could use the financial data in Table 1.1. (c) Way 1: Way 2: [4] , , Explain two methods of lean production KPX could use. (d) Method 1: Explanation: Method 2: Explanation: [6] Explain two reasons why profit is important for a business. Which reason is likely to be the most important? Justify your answer. (e) [6] , ,

Max is an entrepreneur who wants to start up a business selling books. He has decided to use ecommerce. Max has been told there is government support for start-up businesses. He will use 2 market research to help make business decisions. Max knows it is important for a new business to build customer loyalty. Define ‘entrepreneur’. (a) [2] Identify two reasons why governments support start-up businesses. (b) Reason 1: Reason 2: [2] Outline two opportunities for Max’s business of using ecommerce. (c) Opportunity 1: Opportunity 2: [4] , , Explain two ways Max could use market research to help make business decisions. (d) Way 1: Explanation: Way 2: Explanation: [6] Explain two ways a business could build customer loyalty. Which is likely to be the best way for a new business to use? Justify your answer. (e) [6] , ,

STB is a public limited company. It uses job production to build houses. In 2024 the business built 13500 houses. STB has many stakeholder groups including its 5000 employees. The Managing 3 Director knows business activity can affect the environment and that there are many reasons why a business should respond to environmental pressures. She also wants to know how economic growth might affect STB. Identify two ways business activity can affect the environment. (a) Way 1: Way 2: [2] Identify two reasons why a business should respond to environmental pressures. (b) Reason 1: Reason 2: [2] Outline two ways economic growth might affect STB. (c) Way 1: Way 2: [4] , , Explain two benefits to STB of using job production. (d) Benefit 1: Explanation: Benefit 2: Explanation: [6] Do you think employees are the most important stakeholder group for a manufacturing business? Justify your answer. (e) [6] , ,

ZPR is a business in the tertiary sector. It has 1 restaurant which has 20 employees. The Human Resources Manager is preparing a job description as ZPR needs 2 new chefs. He said: ‘I need to 4 advertise the job vacancies externally. ZPR will use a range of financial rewards as it can be difficult to recruit employees.’ The manager knows there are many factors for a business to consider when deciding who to recruit. Define ‘tertiary sector’. (a) [2] Define ‘job description’. (b) [2] Identify four financial rewards a business could use. (c) Reward 1: Reward 2: Reward 3: Reward 4: [4] , , Explain two ways ZPR could use to advertise its job vacancies externally. (d) Way 1: Explanation: Way 2: Explanation: [6] Explain two factors a business should consider when deciding who to recruit. Which factor is likely to be the most important for a tertiary sector business? Justify your answer. (e) [6] , ,