Business Studies · Oct / Nov 2025 · Paper 11 · Question 3

0450

As printed in the paper

The question as text

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

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

Show the answer and mark scheme

3(a)[2]
Identify X and Y. Award 1 mark for each correct answer. X: Break-even (point) Y: (Total) revenue 2 Only award the first response given for each.
3(b)[2]
Define ‘margin of safety’. Award 2 marks for a full definition. Award 1 mark for a partial definition.
The difference between the current level of output/sales and break-even output/sales [2]
The amount by which sales exceed the break-even point [2]
Partial definition e.g.
Difference between total output and break-even point [1]
Number of units that exceed break-even output [1]
2
3(c)[4]
Outline two advantages of Vicki delegating tasks to her employees. Award 1 mark for each relevant advantage (max 2). Award 1 mark for each relevant reference to this business (max 2). Points might include:
Motivate employees [k] helping increase sales above 900 units [app]
Develop employee skills / increase flexibility of workforce [k] when making burgers [app]
Builds trust between the owner and her employees / better working relations [k]
The owner cannot do all tasks alone / reduces her workload / she has time to focus on other tasks [k] such as completing the break-even chart [app]
Quality of the owner’s work is often improved / she is less likely to make mistakes [k] at the restaurant [app]
She can measure performance/success of employees [k] Other appropriate responses should 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:
(Fast) food/restaurant
(Chicken) burgers
14 employees
900 (meals a week)
500/break-even
400/margin of safety
Training
(Economic) recession Other appropriate examples can be credited.
3(d)[6]
Explain two possible effects of an economic recession on Vicki’s business. Award 1 mark for identification of each relevant method (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:
Lower/fewer sales [k] leading to lower revenue [an] from selling burgers [app]
May need to lower costs [k] as revenue is likely to be falling [an] for the restaurant [app]
More workers available to select from [k] so may be able to lower labour costs [an] of the 14 employees [app]
Workers may be made redundant / reduce workforce / downsize [k] which could demotivate other workers [an]
Low business confidence [k] so less willing/likely to invest [an]
The business may fail / hard to survive [k] so may lose their investment [an]
May have cash flow problems [k] so cannot pay day-to- day costs [an]
May have to lower prices [k]
May delay any expansion plans [k]
Banks may not be willing to lend [k]
May change objective to survival [k]
Lower profit [k] so less funds to invest [an] Other appropriate responses should 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:
(Fast) food/restaurant
(Chicken) burgers
14 employees
Delegation
900 (meals a week)
500 (break-even output)
400 (margin of safety) Other appropriate examples can be credited. Some points can be [k] or [an] but only award once. Effects can be positive or negative, but mirror answers can only be credited once.
3(e)[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. 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 which is likely to be the best method for a service business to use. Points might include: On-the-job training [k]
Being trained in the workplace [an]
Watching a more experienced worker doing the job [an]
Allows business specific training to be given [an]
Low(er) cost [an]
Some work completed during training [an]
May learn bad habits from trainer [an]
Trainer may not be as productive as usual [an] Off-the-job training [k]
Being trained away from the workplace [an]
Allows employees to be trained by experts [an]
New/up-to-date skills/knowledge can be taught [an]
High(er) cost [an]
Wages paid but no work is being done [an]
Induction training [k]
Can help new employees understand / familiarise with the work/workplace/job role [an]
New workers settle into their job quickly [an]
Delays when start work [an] Other appropriate responses should be credited. 6 This is a general question so there are no marks for application. Points can refer to the business or employee. Analysis can be awarded for explaining the method/advantages/disadvantages of using the named method. Some points can be written as an advantage of one method, or a disadvantage of another - only award once. Guidance Justification might include: On-the-job training [k] is where trainees watch a more experienced worker [an]. Alternatively, off-the-job training [k] will teach up to date skills [an]. Off-the-job training is the best method as the business is more likely to improve productivity by learning the ideas [eval] whereas on-the-job training may lead to employees picking up bad habits so would have limited value [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.