Business Studies · Oct / Nov 2025 · Paper 12 · Question 1

0450

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BEI is a multinational company. It manufactures aeroplanes. Quality assurance is important. BEI has 5000 employees. BEIis directors have announced plans to reduce the size of its workforce 1 (downsize). The Human Resources Director is considering which employees to make redundant. Information about employee A can be found in Table 1.1. Table 1.1 Information about employee A • Worked at BEI for 1 year • Worked at another manufacturing business for 12 years • Able to use most of the machines at BEI • Often late for work • Popular with other employees • Left school with 2 IGCSEs

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1(a)[2]
Define ‘quality assurance'. Award 2 marks for a full definition. Award 1 mark for a partial definition.
Checking for quality (standards) throughout production process / checking quality at every stage [2]
A method of improving quality by trying to prevent mistakes happening in the production process [2]
Partial definition e.g.
Checking work done / checking quality multiple times [1]
Try to prevent mistakes [1]
2 To gain both marks, the answer must show the idea of:
Check quality / product
throughout/at every stage of the production process.
1(b)[2]
Identify two reasons why a business might reduce the size of its workforce. Award one mark per reason (max 2). Points might include:
Fall/decrease in demand/sales/revenue / recession
Introduction of automation/machinery/technology / becoming capital intensive
Financial problems / (need) to reduce costs
Closure of factory/shop/office
Merger/takeover
Relocation / move its operations (to another part of country/world) Other appropriate responses should be credited. 2 Only award the first two responses given.
1(c)[4]
Outline, with reference to BEI, the difference between redundancy and dismissal. Award 1 mark for showing understanding of redundancy (max 1). Award 1 mark for showing understanding of dismissal (max 1). Award 1 mark for each relevant reference to this business (max 2). Points might include: Redundancy:
The job is no longer needed/exists [k] as business is downsizing [app]
The worker has done nothing wrong [k] when making aeroplanes [app]
Being asked to leave because the skills/experience of the employee are no longer needed [k] Dismissal:
Employee is incompetent/cannot do the job / not meeting targets [k] at the multinational company [app]
Being asked to leave because of poor behaviour/conduct of employees [k] which may affect quality assurance [app]
Termination of employment by the employer / when employee is told/made to leave job against will of employee [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:
Multinational company / MNC
Aeroplanes
Quality assurance
Downsize/reduce size of its workforce
5000 (employees)
Employee A is often late to work
Employee A worked for 1 year at BEI Other appropriate examples can be credited. Candidates must make it clear in the answer which term the point relates to. Max 1 [k] for points about redundancy and max 1 [k] for points about dismissal. Do not award:
Sacked / fired / laid off on own
1(d)[6]
Explain one advantage and one disadvantage of BEI making employee A redundant. Award 1 mark for identification of each relevant advantage/disadvantage (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: Advantages:
May have to pay out less in compensation/redundancy payment [k] as only been there for 1 year [app] which could help lower cash outflows / use funds for other areas of the business [an]
Could improve productivity/efficiency [k] because they are often late for work [app] so orders are met on time [an] Disadvantages:
May lose a lot of experience [k] as worked at another business for 12 years [app] which could lead to more mistakes / less output [an]
May lose skills [k] as employee A can use most of the machinery [app] which may lead to production delays [an]
May lower motivation of other employees [k] as employee A is popular with them [app] which could increase labour turnover [an]
May have to train someone else [k] which can increase costs [an]
Lower output [k] 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:
Multinational company / MNC
Aeroplanes
Quality assurance
Downsize (its workforce)
1 year (at BEI)
12 years (at other businesses)
Popular (with other employees)
Often late
Able to use (most of) the machinery
2 IGCSEs
5000 (employees) Other appropriate examples can be credited. Some points could be awarded as [k] or [an] but only award once. Some [an] could be used for different points but only award once. The following are [an] only:
Increase costs on its own.
Labour turnover/absenteeism.
1(e)[6]
Explain two possible benefits to a country of a multinational company locating there. Which benefit is likely to be the most important? 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 benefit is likely to be the most important to a country. Points might include:
Increase jobs/employment opportunities [k] increasing people’s income [an] AND/OR reducing unemployment [an] AND/OR improve standard of living/reduce poverty [an]
Generate taxes [k] which may be used to improve public services [an]
More competition [k] which could increase choice/quality of products / may lead to lower prices [an]
Increase reputation/recognition of country [k] which could encourage other businesses to set up/invest in the country [an]
Knowledge sharing / increase skills / gain technical knowhow [k] which could help improve production methods / increase efficiency/output [an]
Improve infrastructure/new investment [k] Other appropriate responses should be credited. Justification might include: One benefit to the country is increased competition [k] which could increase the choice of products available [an]. It could also increase the number of jobs [k] reducing unemployment. [an] The extra jobs are likely to be the most important because this could improve the standard of living for many families [eval] who may then be able to afford to buy the wider choice of goods [eval]. 6 This is a general question so there are no marks for application. To access evaluation marks, candidates must identify two valid benefits. For evaluation to be awarded justification will usually follow on from relevant analysis of points. Some points could be awarded as [k] or [an] but only award once. Some [an] can be used for different points but only award once.

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