Business Studies paper 2 nov 2010

This document consists of 11 printed pages, 1 blank page and 1 Insert. DC (SLM) 34227 © UCLES 2010 [Turn over UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level2 7115/22/O/N/10 © UCLES 2010 For Examiner’s Use 1 (a) Kim and Selina buy food for the restaurant from local farms. Explain two factors Kim and Selina should take into account when deciding from which farms to buy the food. Factor 1: ........................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Factor 2: ........................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ..................................................................................................................................... [8]3 7115/22/O/N/10 © UCLES 2010 [Turn over For Examiner’s Use (b) Kim and Selina use the services of a number of tertiary businesses including banks, insurance companies, Internet provider and advertising agency. Do you think the restaurant could be successful without each of these services? Justify your answer. Banks: .............................................................................................................................. ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Insurance companies: ...................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Internet provider: .............................................................................................................. ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Advertising agency: ......................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ...................................................................................................................................[12]4 7115/22/O/N/10 © UCLES 2010 For Examiner’s Use 2 (a) Kim and Selina want to increase the number of times the restaurant is hired out for weddings and birthday parties. Identify and explain four types of promotion the restaurant could use to increase the number of customers. Type of promotion 1: ........................................................................................................ Explanation: ..................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Type of promotion 2: ........................................................................................................ Explanation: ..................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Type of promotion 3: ........................................................................................................ Explanation: ..................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Type of promotion 4: ........................................................................................................ Explanation: ..................................................................................................................... ......................................................................................................................................... ..................................................................................................................................... [8]5 7115/22/O/N/10 © UCLES 2010 [Turn over For Examiner’s Use (b) Kim and Selina have advertised a job vacancy for a Restaurant Manager. Look at Appendix 2, compare the two job applicants and decide which applicant you would choose to employ. Explain the reasons for your choice. ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ...................................................................................................................................[12]6 7115/22/O/N/10 © UCLES 2010 For Examiner’s Use 3 (a) The restaurant is located near to several restaurants which are competitors. Identify and explain two advantages and two disadvantages to the business of being located near to competitors. Advantage 1: .................................................................................................................... Explanation: ..................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Advantage 2: .................................................................................................................... Explanation: ..................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Disadvantage 1: ............................................................................................................... Explanation: ..................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Disadvantage 2: ............................................................................................................... Explanation: ..................................................................................................................... ......................................................................................................................................... ..................................................................................................................................... [8]7 7115/22/O/N/10 © UCLES 2010 [Turn over For Examiner’s Use (b) Kim and Selina could expand the business through the opening of franchised restaurant outlets. Do you think this is a good idea? Justify your answer. ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ...................................................................................................................................[12]8 7115/22/O/N/10 © UCLES 2010 For Examiner’s Use 4 (a) The gross profit margin for the family dining area is 68% and the net profit margin for the family dining area is 16%. Using the information in Appendix 1, calculate the gross profit margin and net profit margin for the expensive dining area. Show your working. Gross profit margin: ......................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Net profit margin: ............................................................................................................. ......................................................................................................................................... ......................................................................................................................................... ..................................................................................................................................... [8]9 7115/22/O/N/10 © UCLES 2010 [Turn over For Examiner’s Use (b) Using the information in the case, consider the three options for expanding the business and advise Kim and Selina which would be the best option to choose. Justify your answer. Option 1 (buy a boat to convert to a restaurant): ............................................................. ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Option 2 (buy additional restaurant): ................................................................................ ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Option 3 (relocate to new large restaurant): .................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Recommendation: ............................................................................................................ ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ...................................................................................................................................[12]10 7115/22/O/N/10 © UCLES 2010 For Examiner’s Use 5 (a) Explain two problems for Kim and Selina’s business if the customer service in the expensive dining area was of poor quality. Problem 1: ........................................................................................................................ ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Problem 2: ........................................................................................................................ ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ..................................................................................................................................... [8]11 7115/22/O/N/10 © UCLES 2010 For Examiner’s Use (b) Governments often pass laws to protect consumers and laws to protect the environment. Do you think that consumers and the environment need protection from business activity? Justify your answer. Consumers: ..................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... Environment: .................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ...................................................................................................................................[12]12 7115/22/O/N/10 © UCLES 2010 BLANK PAGE Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.