Business Studies · May / June 2022 · Paper 12 · Question 2

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RWB manufactures buses.1200 people work in its factory. All employees receive off-the-job training. RWB uses financial rewards to motivate its employees. Last year RWB made a $1.7 million loss. 2 The Managing Director said: ‘There are many external influences affecting our business, including changes in the level of unemployment and new legal controls over business activities which affect the environment.’

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2(a)[2]
Define ‘off-the-job training’. Award 2 marks for a full definition. Award 1 mark for a partial definition. Training that takes place away from the workplace usually by a specialist trainer(s) [2]
OR Training that takes place away from the workplace, for example at college, university or a specialist training providers premises [2]
OR Training that takes place away from the place of work using methods such as courses/conferences/online learning [2]
Partial definition e.g. training away from the workplace [1]
2 Do not award examples on own as this does not define the term. First mark is for understanding it is away from workplace. 2nd mark is [+1] for stating by whom or providing example of where e.g. in a training centre.
2(b)[2]
Identify two reasons (other than financial) why people work. Award 1 mark per reason (max 2). Points might include:
Job satisfaction / feeling you have done a good job / enjoyment
Social or examples such as feel part of a group / meeting people / making friends at work
Esteem / recognition / status / feel important
Opportunity to reach your potential / challenge yourself to do new things / improve use skills / gain experience
Help others Other appropriate responses should also be credited. 2 Only award the first two responses given. Notes
2(c)[4]
Outline two methods of financial rewards RWB might use to motivate its employees. Award 1 mark for each relevant method (max 2). Award 1 mark for each relevant reference to this business (max 2). Points might include:
High(er) wages / wage rates / time-based rates [k] for workers in the factory [app]
Piece rate [k] paid to its 1200 employees [app]
High(er) salary [k] for making buses [app]
Bonuses [k] but this may be difficult as business has made a loss [app]
Profit sharing/share ownership schemes [k]
Performance related pay [k] Other appropriate responses should also be credited. 4 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 are likely to be appropriate for this question:
Buses
1200 (employees)
Factory
($1.7 million) loss Other appropriate examples in context can still be credited. Notes
2(d)[6]
Explain two ways RWB might be affected by new legal controls over business activities which affect the environment. Award 1 mark for identification of each relevant way (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2) Points might include:
Change its production methods/equipment e.g. need to buy new machines [k] leading to higher interest/finance costs [an] which may increase its loss [app]
May need to redesign products [k] so may be able to charge a higher price/allow the business to reduce variable costs [an]
Require more training / retraining [k] for its 1200 employees [app] which could delay production [an]
May have to buy (pollution) permits / pay fines/higher taxes / may need to recycle/change how it disposes of the waste [k] increasing cash outflows [an]
May have to change materials/components used/switch suppliers / reduced range/access to materials [k] increase variable costs [an]
Stop/limit/slow production [k] of its buses [app]
Lower emissions / use renewable energy [k] in the factory [app] helping to lower energy costs (in the long run) [an]
May need to change location [k] increase cost of rent [an] Other appropriate responses should also be credited. 6 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 are likely to be appropriate for this question:
Buses
1200 (employees)
Factory
($1.7 million) loss
Off-the-job training Other appropriate examples in context can still be credited. Notes
2(e)[6]
Do you think a reduction in the level of unemployment always benefits businesses? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to whether a reduction in the level of unemployment always benefits businesses.
Increase in sales [k] could lead to higher revenue [an]
Difficult to recruit workers [k] which may lead to an increase in recruitment costs / difficult to increase output / meet orders [an]
Higher wages may need to be paid [k] increasing labour costs [an]
Available workers may lack necessary skills [k] leading to lower productivity / higher training costs / lower quality [an] Other appropriate responses should also be credited. Justification might include: A reduction in unemployment may mean more sales [k] leading to higher potential revenue [an]. However, because there are fewer people looking for work it may be difficult to recruit workers [k] which could make it difficult to increase output [an]. Overall, it may depend on whether the business needs employees or not, as without sufficient workers they may not be able to produce enough to benefit from higher potential sales [eval] [eval]. 6 This is a general question so there are no marks for application. Notes

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