The Association of Business Executives

QCF

The Business Environment

Tuesday 9 June 2015, Afternoon

1.

Time allowed: 3 hours.

2.

Read the instructions at the top of each section carefully.

3.

Follow the recommended timing guide for each question.

4. No books, dictionaries, notes or any other written materials are allowed in this
examination.
5. Calculators, including scientific calculators, are allowed provided they are not
programmable and cannot store or recall information. All other electronic devices,
including mobile phones, are not permitted.
6. Candidates who break ABE Examination Regulations will be disqualified from the
examinations.
7.

Question papers must not be removed from the examination room.

Structure of paper: Answer all three sections

Section A: Answer all four questions

Q1
Q2
Q3
Q4

Section B: Answer one question

Either Q5 or Q6

Section C: Answer one question

Either Q7 or Q8

5TBE0615

ABE 2015

F/601/2811

This paper consists of three sections.

Follow the instructions at the top of each section.
Section A
You must answer all four questions in this section.
You should spend approximately 30 minutes on each question.

Q1 
Describe the advantages and disadvantages of a matrix organisational structure compared to
a tall hierarchical structure. Use examples and outline diagrams where appropriate to support
your answer.
Q2 Compare the sole trader with a public limited company (plc) as legal forms of organisations.
Use examples of each form of organisation to support your answer.
Q3 Explain three main benefits of a market economy compared to a centrally planned economy.
Q4 Explain how SWOT analysis can be helpful for an organisation of your choice.

End of Section A

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Section B
You must answer one question in this section. Do not answer both Q5 and Q6.
You should spend approximately 30 minutes on your chosen question.

EITHER:
Q5 Explain the key benefits of a trading bloc for business organisations located in that trading
bloc.
OR:
Q6 Explain the advantages and disadvantages of the following methods of entering a foreign
market:
(i) Franchise

(ii) Joint venture

End of Section B

Section C
You must answer one question in this section. Do not answer both Q7 and Q8.
You should spend approximately 30 minutes on your chosen question.

EITHER:
Q7 You work for a global car manufacturer.
Discuss how demographic changes could affect the design of the cars made by your
organisation. Use examples to support your answer.
OR:
Q8 Describe any two of the following technological developments and explain their potential
advantages and disadvantages for a business of your choice:

(i) E-mail
(ii) Internet
(iii) E-commerce
(iv) Improvements in manufacturing technology

End of Section C
End of question paper
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