0450 Business Studies November 2024 Question paper 21

Explain four reasons why a business might remain small. (a) 1 Reason 1: Reason 2: Reason 3: Reason 4: [8] , , Consider the following three roles of packaging for CC’s products. Which role is most important for CC? Justify your answer. (b) • Protecting the product • Promoting the brand image • Providing information about the product Protecting the product: Promoting the brand image: Providing information about the product: Conclusion: [12] , ,

Explain two functions of management for CC’s new manager. (a) 2 Function 1: Explanation: Function 2: Explanation: [8] , , Consider how a decrease in interest rates and an increase in taxes in country P could affect CC. Which is likely to have the biggest effect on CC’s profit? Justify your answer. (b) Decrease in interest rates: Increase in taxes: Conclusion: [12] , ,

Explain two benefits and two limitations of CC using batch production. (a) 3 Benefit 1: Benefit 2: Limitation 1: Limitation 2: [8] , , Consider the two options for CC’s new cookies outlined in Appendix 3. Which option should CC choose to produce? Justify your answer using appropriate calculations. (b) Option 1: Option 2: Recommendation: [12] , ,

Explain two reasons why CC might need finance. (a) 4 Reason 1: Explanation: Reason 2: Explanation: [8] , , Consider the following three pricing methods CC could use for its existing products. Which pricing method should CC use? Justify your answer. (b) • Cost-plus • Promotional • Competitive Cost-plus: Promotional: Competitive: Recommendation: [12] , ,