Business Studies · Oct / Nov 2021 · Paper 12 · Question 4

0450

As printed in the paper

The question as text

GCF is a public limited company. It provides a range of computer services to businesses including designing websites and creating apps. The Human Resources Director use ideas based on Maslow’s 4 Hierarchy of Needs to help keep GCF’s 250 employees well-motivated. An extract of methods used is shown in Table 4.1. GCF plans to expand by taking over one of its competitors. This will cost $50m. To finance the takeover, GCF is considering issuing new shares. Table 4.1 Extract of methods used at GCF to motivate employees ‘Employee of the month’ award Organises team building courses

Read automatically from the paper; the printed page above is exact.

Show the answer and mark scheme

4(a)[2]
Identify two features of a public limited company. Award 1 mark for each feature identified. Points might include:
Limited liability
Can sell shares to the general public / shares quoted on stock exchange
Must publish its accounts / more regulations
Separate legal identity / business survives death of owners
Minimum of two owners
Must hold an Annual General Meeting (AGM) 2 Only award the first two responses given.
4(b)[2]
Identify the level of Maslow’s Hierarchy of Needs each of the following methods belongs to. Award 1 mark per correct answer. ‘Employee of the month award’: Level 4 OR esteem Organises team building courses: Level 3 OR social/belonging 2 Do not award self-esteem as alternative to esteem (as this is not a level). Notes
4(c)[4]
Outline two advantages to GCF of having well-motivated employees. Award 1 mark for each relevant advantage. Award 1 mark for each relevant reference to this business. Points might include:
High / higher productivity / efficiency / output / work quick or quicker [k] when working for its business customers [app]
Less likely to leave / low labour turnover [k] of its 250 employees [app]
Less absenteeism [k] so easier to offer computer services [app]
Willing to accept change / new methods of working [k] which could be important when its looking to take over a competitor [app]
Good / better (quality) service / fewer mistakes / less errors [k] Other appropriate responses should also be credited. 4 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words may be appropriate for this question:
Computer services or examples such as designing apps / websites
250 (employees)
Business customers
Takeover (a competitor) / plans to expand Other appropriate examples in context can still be credited. Notes
4(d)[6]
Explain one advantage and one disadvantage to GCF of issuing new shares as a source of finance. Award 1 mark for identification of each relevant advantage / disadvantage (max 2). Award 1 mark for each relevant reference made to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include: Advantages:
Access to large amounts of capital [k] so able to fund expansion [an] as need to raise $50m [app]
No interest / finance costs to pay [k] so fixed costs do not increase [an] so can invest in its computer services / designing websites [app]
Permanent source of capital [k] so no need to repay [an]
Avoid increasing debt [k] Disadvantages:
Cost/time to arrange [k] so not able to focus on other issues [an] such keeping its employees well-motivated [app]
Increased risk of takeover / original owners may lose control [k] which could change the direction / objectives of the business [an]
Shares might not be bought / no guarantee can raise planned amount [k] Other appropriate responses should also be credited. 6 Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words may be appropriate for this question:
Computer services or examples such as designing apps / websites
$50m
Takeover (a competitor) / plans to expand
Well-motivated employees
Public limited company Other appropriate examples in context can still be credited. Notes
4(e)[6]
Do you think the number of employees is the best way to measure the size of a tertiary sector business? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award 2 marks for a justified decision as to whether the number of employees is the best way to measure the size of a tertiary sector business. Points might include: Employees:
Some businesses make use of a lot of technology/equipment [k] so it does not need as many workers [an]
Some businesses may have a lot of part-time workers [k] which can be difficult to compare businesses [an]
Simple/easy to calculate [k] Other points might include:
Value of sales / revenue / output [k] as high value can suggest many customers [an] resulting in higher revenue [an]
Capital employed [k] but some types of business may have a high level of non-current assets / technology / shops whereas others do not [an]
Number of outlets/branches [k] but could be (in area of) low demand [an]
Market share [k]
Number of customers/services [k] Other appropriate responses should also be credited. 6 This is a general question so there are no marks for application. Do not award profit as a measure of size. Notes Justification might include: Using employees may not be a good measure as some businesses make use of a lot of technology [k] so it does not need as many workers. [an] A better way is value of sales [k] which can suggest a business has many customers [an]. I think value of sales is the better measure, as all businesses will have sales revenue [eval] whereas the number of employees can depend on the type of tertiary sector business. [eval]

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.