Note AcademyNote Academy
Start

Business Studies · May / June 2020 · Paper 21 · Question 3

0450

As printed in the paper

Show the answer and mark scheme

  • 3(a)[8]

    Explain four ways an increase in government spending may affect a business. Award 1 mark for each relevant way (maximum of four ways). Relevant ways might include:

    Government may increase purchases from other businesses – increasing demands for its products
    May lead to higher inflation - increase business costs
    May reduce unemployment - increase consumer spending
    May lead to a need to increase taxes - reducing consumer spending Award a maximum of 1 additional mark for explanation of how an increase in government spending may affect a business. For example: Government may increase purchases from other businesses [1]

    increasing the revenue of these businesses [1]. 8

  • 3(b)[12]

    Referring to Appendix 2, consider the suitability of the three applicants for the position of manager. Which applicant should Simon select? Justify your answer. Level Description Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of two or more applicants. Well-justified recommendation. Candidates discussing all three applicants in detail, in context and with well-justified recommendation including why the alternative applicants were rejected should be rewarded with the top marks in the band. 9–12 2 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one applicant. Judgement with some justification/some evaluation of choice made. Candidates discussing two or more applicants in detail and applying it to the case should be rewarded with the top marks in the band. 5–8 1 Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the applicants with little/no explanation. Simple judgement with limited justification/limited evaluation of choice made. Candidates outlining all three applicants in context should be rewarded with the top marks in the band. 1–4 0 No creditable response. 0 12 Relevant points might include: Joe

    Inexperienced as only worked part-time
    Doesn’t want to work long hours so may not work hard for Simon
    Has experience of the food and drink industry and already trained in hygiene regulations so saving time and money
    But cheapest at $6 hourly wage of the three so costs will be lower Zabeen
    Experience of management – may be skilled to manage the market stalls without training
    No qualifications so may not have much ability to learn – training less effective
    Ambitious so may be keen to do well and impress Simon
    But the most expensive at $15 per hour to employ so costs will be higher
    May leave if better job comes along to higher costs of recruitment as need to replace her Jim
    Has experience of the food industry and already trained in hygiene regulations so saving time and money
    Enthusiastic and wants to do more challenging work – will work hard to impress Simon
    Has already worked as a manager so no need to train him in what to do – do the job quicker and cheaper Recommendation Justification might include:
    Joe is probably youngest and cheapest (at $6 per hour) of the three applicants to employ but has the least experience and Simon needs someone reliable to make the stall successful.
    Zabeen most experience but not on a food or drinks stall. Also has no formal qualifications and is the most expensive of the three applicants to employ. As FJ is a new business it will need to keep costs down.
    Jim has hygiene certificate and so lower costs than Zabeen as training not required. Has more experience than Joe of working in a food and drinks establishment. He is ambitious so will try hard and more likely to help make the market stall successful.
Practise this paper →

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.