MONTHLY TEST ­ OCTOBER 2020

BUSINESS STUDIES

9 ........... (Cambridge)
Duration : 2 periods

Candidate's name : ............................................................... Admission no : ...................

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(1) DWT is a partnership business that makes solar panels in country Y. This is a low­cost
country which is experiencing rapid economic growth. DWT’s production method makes use
of division of labour and specialisation. All 120 of DWT’s employees know that ensuring
quality production is important. DWT imports some of its raw materials to increase its added
value. The Government of country Y plans to introduce import taxes of 50%. DWT’s
Managing Director said: ‘This decision will affect all of our stakeholders.
(a) Define specialization?
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(2 marks)
(b) Identify two advantages of division of labour.
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(2 marks)
(c) Outline one advantage and one disadvantage of a partnership business.
Advantage 1 –
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Disadvantage 1 –
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(4 marks)

contd.....to page 2
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Grade 10 Business Studies contd.....from page 1
(d) Explain one objective of each of the following stakeholder groups of DWT.
Customers –
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Pressure groups –
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(6 marks)
(e) Do you think a business will benefit by increasing added value of its products? Justify your answer.
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(6 marks)
[Total = 20 marks]
contd.....to page 3
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Grade 10 Business Studies contd.....from page 2
(2) After losing his job, Juan decides to become an entrepreneur. He wants to set up a shoe­repair
business with his redundancy payment. He would be a sole trader. Juan believes a business
plan would help him. Juan has been told to build good customer relationships. The
Government is offering either grants or free training to all new business start­ups.
(a) Identify two characteristics of a successful entrepreneur.
Charasteristic1 ­
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Characteristic 2 ­
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(2 marks)
(b) Identify two possible disadvantages to Juan of being a sole trader.
Disadvantage 1 ­
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Disadvantage 2 ­
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(2 marks)
(c) Identify and explain two ways in which a business plan might help a business.
Way 1 ­
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Explanation ­
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Way 2 ­
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Explanation ­
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(4 marks)
contd.....to page 4
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Grade 10 Business Studies contd.....from page 3
(d) Identify and explain two objectives Juan can have for her business.
Objective 1 ­
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Explanation ­
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Objective 2 ­
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Explanation ­
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(6 marks)
(e) Identify and explain one benefit of following government aids in Juan’s business.
Grants
Benefit –
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Explanation –
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Training
Benefit –
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Explanation –
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(6 marks)
[Total = 20 marks]
contd.....to page 5
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Grade 10 Business Studies contd.....from page 4

(3) MSH is a large business providing floor cleaning services to other businesses. It has many
loyal employees. When a worker does leave, new recruits are trained. MSH is located in an
area with a high level of unemployment. MSH is experiencing falling demand and plans to
increase promotion. The manager of MSH is thinking about relocating the business to Main
city, which is 50 km away. Main city has many expanding industrial areas. The manager is
worried about the effect of relocation on some stakeholder groups.
(a) What is meant by ‘stakeholder group’?
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(2 marks)
(b) Identify two reasons why some businesses fail.
Reason 1 –
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Explanation –
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Reason 2 –
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Explanation –
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(4 marks)

contd.....to page 6
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Grade 10 Business Studies contd.....from page 5

(c) Identify and explain two conflicts of stakeholder objectives in MSH .

Conflict 1 –
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Explanation –
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Conflict 2 –
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Explanation –
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(4 marks)
[Total = 10 marks]

END

Ref : NR