0450 Business Studies November 2025 Question Paper 11

WMH is a business which operates in the secondary sector. It makes furniture including tables and chairs. WMH’s employees are all members of a trade union. The Managing Director knows the 1 business is likely to remain small. She is considering introducing new technology into WMH’s factory. She also knows it is important for a manufacturing business to choose a suitable location for a factory. Define ‘trade union’. (a) [2] Define ‘secondary sector’. (b) [2] Identify four reasons why a business might remain small. (c) Reason 1: Reason 2: Reason 3: Reason 4: [4] , , Explain two possible effects of WMH introducing new technology. (d) Effect 1: Explanation: Effect 2: Explanation: [6] Explain two factors a manufacturing business should consider when deciding on a suitable location for a factory. Which factor is likely to be the most important? Justify your answer. (e) [6] , ,

CPW is a private sector business which has many objectives. It sells electrical goods including kettles and ovens in its 36 shops in country X. CPW also offers a delivery service. The business buys all its inventory from local suppliers to avoid import tariffs. The Finance Director is analysing CPW’s statement of financial position. An extract is shown in Table 2.1. He has been asked to find a source of finance to purchase 10 new delivery vehicles. 2 Table 2.1 Extract from CPW’s statement of financial position for 2024 ($ million) 120 Non-current assets 70 Current assets 110 Current liabilities 75 Non-current liabilities Define ‘import tariff’. (a) [2] Identify one non-current asset and one current liability. (b) Non-current asset: Current liability: [2] , , Outline two ways the information in Table 2.1 might be useful to CPW. (c) Way 1: Way 2: [4] Explain two factors CPW should consider when deciding on a source of finance for the new vehicles. (d) Factor 1: Explanation: Factor 2: Explanation: [6] , , Explain two objectives a private sector business might have. Which objective is likely to be the most important? Justify your answer. (e) [6] , ,

SBL is a fast food restaurant which sells 900 chicken burgers each week. It has 14 employees. The owner, Vicki, provides her employees with training but does not currently use delegation. She is preparing a break-even chart to help calculate SBL’s margin of safety. A partially completed break-even chart is shown in Fig. 3.1. Vicki wants to know how an economic recession might affect her business. Break-even chart for SBL 3 Fig. 3.1 Identify X and Y. (a) X: Y: [2] Define ‘margin of safety’. (b) [2] , , Outline two advantages of Vicki delegating tasks to her employees. (c) Advantage 1: Advantage 2: [4] Explain two possible effects an economic recession might have on Vicki’s business. (d) Effect 1: Explanation: Effect 2: Explanation: [6] , , Explain two methods of training a business might use. Which is likely to be the best method for a service business to use? Justify your answer. (e) [6] , ,

MTL is a large business which sells children’s toys. MTL wants to act ethically with all of its stakeholder groups including its 430 employees. The market MTL operates in has become more competitive. The business uses a range of methods to promote its products. Having a good brand image is important. MTL’s directors are considering entering a new market in another country. They are aware there may be problems if they choose to do this. 4 Define ‘brand image’. (a) [2] Identify two reasons why some markets have become more competitive. (b) Reason 1: Reason 2: [2] Outline one way MTL could act ethically with each of the following stakeholder groups: (c) Employees: Customers: [4] , , Explain two problems MTL might have when entering a new market in another country. (d) Problem 1: Explanation: Problem 2: Explanation: [6] Explain two methods of promotion a business might use for its products. Which method is likely to be the best for a large business to use? Justify your answer. (e) [6] , ,