Past papers

Question 1

Purpose of preparing a cash budget (4)

Answer 1

• Whether a business has a surplus in cash- allows for company to have future purchasing
• Whether the business will be in a deficit- allows for adjustments in expenditure
• comparison from predictions to actual figures- monitor performance of the business
• sets targets for employees to achieve- empower employees to have aims

Question 2

Benefits of quality cirlcles

Answer 2

• get suggestion from staff- systems can become improved and empowers staff
• more motivation and empowerment- lowers staff turnover
• makes job feel valuable and improve employee relationships

Question 3

Advantages of having a varied portfolio (4)

Answer 3

Spreads risks of failure- other products to rely on

• maximise sales- attracting different market segments
• raise profile of the business- several different products
• variety of products in the same brand- high brand recognition

Question 4

Objectives of the public sector (2)

Answer 4

• to provide a quality service

- spending tax payers money wisely, recruit staff

Question 5

Discuss outsourcing (6)

Answer 5

Costs:

• private firm could increase costs, can create cash flow problems
• loss of control over private firm- may result in quality issues
• few competitors- limits the company to find a suitable supplier

Benefits

• allows organisations to focus on the core activities
• specificalist labour- can cover if the company has shortages
• if on a 0 hour contract- only use them when required which reduces costs

Question 6

Explain methods of being socially responsible (3)

Answer 6

• using energy and water- save on energy
• reusing materials- reducing purchasing costs
• source from ethical suppliers- encourages substainability

Question 7

Ways managers can assess decisions (4)

Answer 7

• check if targets been met- assess key performance measures from staff
• gather feedback- customers opinions from surveys and meetings
• compare profits and sales so profits can increase- can assess from other financial info
• review numbers of complaints-check customer reviews

Question 8

Widening span of control of the manager (3)

Answer 8

• managers having a larger span of control- managers placed under more stress making decisions slower due to the large workforce
• managers have little time to spend with each employees to talk about work- employees demotivated
• less time for planning- poor decisions being made

Question 9

Equality act- impact on legislation (3)

Answer 9

• may be prosecuted for discrimination, have to be careful and revise recruitment policies
• costly- invest in better accessibility eg ramps
• timely- investigate issues of discrimination against another party
• train staff on discrimination percaution

Question 10

Discuss the 2010 equality act

Answer 10

• organisations may face legal action- results in fines and sanctions
• timely and costly- investigate any accusations and act of discrimination where necessary
• actions need to take place that prevent protected characteristics from doing their work eg- disability ramps that may be costly
• requires organisation to promote equality and avoid discrimination in the workplace

Question 11

What is meant by method of production

Answer 11

Capital and labour intensive work

Question 12

What are some advantages of being a social enterprise

Answer 12

• some grants are only to social enterprises
• attract high quality staff who want to help a social cause
• the publicity can help promote the business