Class: Name:

BUSINESS STUDIES 0450

02 December 2021
Secondary 3 1 hour
Additional Material : Insert and Answer Sheet
You must answer on the answer sheet

READ THESE INSTRUCTIONS FIRST

Write in dark blue or black pen.

You may use an HB pencil for any diagrams, graphs or rough working.

Section A
Answer all questions.
The businesses described in this question paper are entirely fictitious.

Section B
Answer all questions.
The insert contains the case study.
The business described in this question paper is entirely fictitious

At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.

For examiner’s use

Section A /30

Section B /20

Total /50

Parent’s Signature:

This document consists of 6 printed pages including this cover page.

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Section A

1 HNI sells furniture such as beds and tables. It started as a partnership but is now a private
limited company. HNI has expanded quickly and has 10 shops located in different cities.
Each shop manager is responsible for recruitment and decisions about inventory levels.
They send the Board a monthly report. The Managing Director has a laissez-faire
leadership style. There has been an increase in customer complaints and employees think
internal communications need to be improved.

(a) Identify two stages in recruitment.

Stage 1:.............................................................................................................................

Stage 2:.........................................................................................................................[2]

(b) Identify two possible reasons why the owners of a business may want it to expand.

Reason 1:..........................................................................................................................

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Reason 2:..........................................................................................................................

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(c) Identify and explain two advantages to HNI of being a private limited company.

Advantage 1:.....................................................................................................................

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Explanation:.......................................................................................................................

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Advantage 2:.....................................................................................................................

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Explanation:.......................................................................................................................

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(d) Identify and explain one advantage and one disadvantage of the Managing Director’s
leadership style.

Advantage:........................................................................................................................

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Explanation:.......................................................................................................................

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Disadvantage:....................................................................................................................

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Explanation:.......................................................................................................................

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(e) Explain two ways HNI could try to improve internal communication. Recommend
which way HNI should choose. Justify your answer.

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2 Tiffany is a sole trader. She produces handmade, individually designed greetings cards
using job production. High quality cards are important to Tiffany’s customers. Tiffany has 3
part-time employees who are paid an hourly wage rate. Tiffany is thinking of changing from
an hourly wage rate to a piece rate system, where the employees are paid depending on
the quantity of products they make. Tiffany thinks this will help to improve the motivation of
her workforce. During festivals and celebrations she receives a higher number of orders.

(a) Identify and explain two advantages to Tiffany of having part-time employees.

Advantage 1:.....................................................................................................................

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Explanation:.......................................................................................................................

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Advantage 2:.....................................................................................................................

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Explanation:.......................................................................................................................

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(b) Identify and explain two non-financial methods of motivation which Tiffany could use.

Method 1:...........................................................................................................................

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Explanation:.......................................................................................................................

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Method 2:...........................................................................................................................

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Explanation:.......................................................................................................................

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Section B

3 (a) Explain two characteristics that make George a successful entrepreneur.

Characteristic 1:.................…………………………………………………………….............

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Characteristic 2:………..………………………………………………………………….……..

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(b) George needs to recruit an additional chef.

Consider the advantages and disadvantages of each of the three applicants outlined in
Appendix 2. Recommend which applicant George should recruit. Justify your choice.

Jim:.................…………………….…………………………………………………….............

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Recommendation:………..……………………………………………………………………...

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