unit 2 *gbs21* business development

20
TIME INSTRUCTIONS TO CANDIDATES *20GBS2101* *GBS21* *GBS21* *20GBS2101* 9963 Write your Centre Number and Candidate Number in the spaces provided at the top of this page. You must answer the questions in the spaces provided. Do not write outside the boxed area on each page or on blank pages. Complete in blue or black ink only. Do not write with a gel pen. Answer all three questions. INFORMATION FOR CANDIDATES The total mark for this paper is 90. Quality of written communication will be assessed in Questions 1(f), 2(c) and 3(c). Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. 1 hour 40 minutes. General Certificate of Secondary Education 2016 Business Studies Unit 2 Business Development [GBS21] FRIDAY 10 JUNE, AFTERNOON Centre Number Candidate Number

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Page 1: Unit 2 *GBS21* Business Development

TIME

INSTRUCTIONS TO CANDIDATES

*20GBS2101*

*GBS21*

*GBS21*

*20GBS2101*

9963

Write your Centre Number and Candidate Number in the spaces provided at the top of this page.You must answer the questions in the spaces provided.Do not write outside the boxed area on each page or on blank pages.Complete in blue or black ink only. Do not write with a gel pen.Answer all three questions.

INFORMATION FOR CANDIDATESThe total mark for this paper is 90.Quality of written communication will be assessed in Questions 1(f), 2(c) and 3(c).Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question.

1 hour 40 minutes.

General Certificate of Secondary Education2016

Business Studies

Unit 2Business Development

[GBS21]FRIDAY 10 JUNE, AFTERNOON

Centre Number

Candidate Number

Page 2: Unit 2 *GBS21* Business Development

*20GBS2102*

*20GBS2102*

9963

Answer all questions

1Rob and Max own a successful sports shop named ‘‘A Sporting Chance’’

in Portstewart. They wish to employ a Sales Manager for the shop.

(a) Rob and Max decided to use internal recruitment to fill the post. Explain one advantage and one disadvantage for A Sporting Chance of this decision.

Advantage ______________________________________________________

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Disadvantage ___________________________________________________

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Page 3: Unit 2 *GBS21* Business Development

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(b) Each applicant has been asked to write a Letter of Application. Explain one advantage and one disadvantage for the employers of a Letter of Application.

Advantage ______________________________________________________

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Disadvantage ____________________________________________________

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Page 4: Unit 2 *GBS21* Business Development

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(c) Training will be provided in a Sales Training Centre for the new Sales Manager. Name this type of training and describe one benefit and one drawback it might have for A Sporting Chance.

Type of Training _________________________________________________

Benefit _________________________________________________________

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Drawback ______________________________________________________

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Page 5: Unit 2 *GBS21* Business Development

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(d) A Sporting Chance operates a system of both financial and non-financial motivation. Name, and describe one financial and one non-financial method of motivation which would be the most suitable for the new Sales Manager.

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Page 6: Unit 2 *GBS21* Business Development

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(e) State when the new Sales Manager must be given his/her Contract of Employment, and name four details which should be included in a Contract of Employment.

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Page 7: Unit 2 *GBS21* Business Development

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(f) Observation is the method of appraisal which is used in A Sporting Chance. Describe this method and explain two of its advantages.

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Page 8: Unit 2 *GBS21* Business Development

*20GBS2108*

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2“A Sporting Chance” continues to be successful, so Rob and Max plan to expand their business by buying another similar business whose owner is retiring soon.

(a) One benefit of growth and expansion is Economies of Scale. Explain what is meant by ‘‘Economies of Scale’’ and give one example how Economies of Scale may occur when A Sporting Chance expands.

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Page 9: Unit 2 *GBS21* Business Development

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*20GBS2109*

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(b) Analyse two other benefits for the owners which should result from the growth of A Sporting Chance.

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Page 10: Unit 2 *GBS21* Business Development

*20GBS2110*

*20GBS2110*

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(c) Analyse two positive and one negative social/moral implications of the growth of A Sporting Chance.

1. Positive Implication _____________________________________________

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2. Positive Implication _____________________________________________

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3. Negative Implication ____________________________________________

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Page 11: Unit 2 *GBS21* Business Development

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(d) Rob and Max have asked the bank for a loan to buy the second shop. The Bank Manager has asked to see their Business Plan. Give details of two other reasons why A Sporting Chance should have a Business Plan.

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(e) Rob and Max are considering using e-commerce as a means of further growth. Explain the meaning of e-commerce.

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Page 12: Unit 2 *GBS21* Business Development

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(f) Analyse three advantages for A Sporting Chance of using e-commerce.

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Page 13: Unit 2 *GBS21* Business Development

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*20GBS2113*

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(g) Analyse three disadvantages for A Sporting Chance of using e-commerce.

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Page 14: Unit 2 *GBS21* Business Development

*20GBS2114*

*20GBS2114*

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3The accounts for A Sporting Chance have been prepared by Samantha.

(a) Samantha has drawn up the following Cash Flow Forecast for the three months from June to August 2016.

Receipts June July August

£ £ £

Opening Balance 46 000 53 006

Sales 32 956 30 376

Total Receipts 74 670 74 938

Payments

Rates 600 600 600

Advertising 750 1400 0

Insurance 200 200 200

Purchases 19 550 9375

Telephone 630 0 0

Cleaning 250 250 250

Wages 3000 3000 3000

Shop Fittings 0 16 400 0

Total Payments 21 664 41 400

Closing Balance 53 006 61 513

Calculate the following amounts and complete the Cash Flow Forecast:

Total Sales for June ____________________________________________ [1]

Total Purchases for June _________________________________________ [1]

Total Receipts for July ___________________________________________ [1]

Closing Balance for July/Opening Balance for August __________________ [1]

Total Payments for August ________________________________________ [1]

Page 15: Unit 2 *GBS21* Business Development

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*20GBS2115*

*20GBS2115*

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(b) Compare the opening cash balance in June with the closing cash balance in August, and comment on the expected performance of A Sporting Chance.

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Page 16: Unit 2 *GBS21* Business Development

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(c) Analyse three consequences for A Sporting Chance if the Cash Flow Forecast is prepared incorrectly.

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Page 17: Unit 2 *GBS21* Business Development

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9963

(d) A Sporting Chance is situated in the street between a jewellery shop called ‘‘Jewels’’ and a fruit and vegetable shop called ‘‘Five-a-Day’’. The following table shows the Rate of Stock Turnover for each of the three shops. Complete the following table with the name of the appropriate shop opposite its rate of stock turnover.

Rate of stock turnover Shop290 times1.5 times5 times

[3]

(e) On 31 December 2015, Samantha produced an Income Statement for the year. Study the Income Statement and answer the questions which follow.

INCOME STATEMENT OF A SPORTING CHANCE FOR THE YEAR ENDED 31 DECEMBER, 2015

£ £Sales 120 000Less Cost of Sales:Opening Inventory 13 200Plus Purchases 66 800

80 000Less Closing Inventory 11 300Cost of Sales 68 700Gross Profit 51 300Less Expenses 14 900Net Profit 36 400

Suggest two ways in which A Sporting Chance might increase its Net Profit.

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Page 18: Unit 2 *GBS21* Business Development

*20GBS2118*

*20GBS2118*

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(f) Use the following formula and the figures provided in the Income Statement to calculate the Net Profit Percentage for A Sporting Chance. Show your calculation (correct to one decimal place) in the space provided.

Net Profit Percentage = Net Profit × 100 Sales

Net Profit Percentage = × 100

Net Profit Percentage =

[2]

Page 19: Unit 2 *GBS21* Business Development

*20GBS2119*

*20GBS2119*

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(g) A Sporting Chance is described as a successful sports shop. Using all the information which you have about the business analyse two signs of its success.

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THIS IS THE END OF THE QUESTION PAPER

Page 20: Unit 2 *GBS21* Business Development

Permission to reproduce all copyright material has been applied for.In some cases, efforts to contact copyright holders may have been unsuccessful and CCEAwill be happy to rectify any omissions of acknowledgement in future if notified.

Examiner Number

DO NOT WRITE ON THIS PAGE

*20GBS2120*

*20GBS2120*

For Examiner’suse only

QuestionNumber Marks

123

TotalMarks

9963/3