BEACONHOUSE SCHOOL SYSTEM – GUJRAT CAMPUS Dated: 02-05-2018

REVISION TEST (SECTION 2) 9- Cambridge

Total Marks: 40 Time Allowed: 60 Mins.

Student Name: _________________________ Section: ____________

The LASHKARA Lakeview Restaurant

The LASHKARA Lakeview Restaurant is owned by two brothers, Chris and Abdul. They set up the restaurant
ten years ago as a private limited company. It is located on the edge of the city.

The business is split into two separate dining areas. One area is for families and the other area serves more
expensive meals for business people. The family dining area is large and is hired out for weddings and
birthday parties. The other area is mainly for business customers. Both sections of the restaurant are always
busy and fully booked on weekdays. Chris and Abdul want to expand the business. The restaurant cannot be
expanded on its existing site as it has buildings on one side and it is next to a lake on the other side. New
workers for the kitchens and waiters will need to be recruited, whichever option is chosen. There are two
options for the business to expand:
• Option 1: Buy a ship and convert it into a floating restaurant next to the main restaurant to hire out for
weddings and birthday parties. The ship will cost $100 000 to buy and convert it to a restaurant. The projected
net profit is $20 000 per year. Unemployment in the area is high.
• Option 2: Close the existing restaurant and relocate to a new building which is much larger and is in the
centre of the city. The additional cost of buying a new restaurant is $250 000 and the projected net profit is $25
000 per year. Unemployment in the city centre is low.

1 BUSINESS STUDIES | Beaconhouse School System, Gujrat Campus

 BEACONHOUSE SCHOOL SYSTEM – GUJRAT CAMPUS Dated: 02-05-2018
REVISION TEST (SECTION 2) 9- Cambridge

1
a)

Identify and explain two reasons why well motivated employees are important for the restaurant. [8]
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2 BUSINESS STUDIES | Beaconhouse School System, Gujrat Campus

 BEACONHOUSE SCHOOL SYSTEM – GUJRAT CAMPUS Dated: 02-05-2018
REVISION TEST (SECTION 2) 9- Cambridge
b) Chris and Abdul have advertised a job vacancy for a restaurant manager. Look at
Appendix 2, compare the two job applicants and decide who you would choose to employ. Justify the
reasons for your choice.
[12]
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2 a) The Lakeview Restaurant is expanding. Identify and explain two reasons why an organisation
chart would be helpful to the management of the restaurant. [8]

3 BUSINESS STUDIES | Beaconhouse School System, Gujrat Campus

 BEACONHOUSE SCHOOL SYSTEM – GUJRAT CAMPUS Dated: 02-05-2018
REVISION TEST (SECTION 2) 9- Cambridge

Reason1:_________________________________________________________________________
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b) The restaurant needs to communicate with its suppliers to order its weekly food ingredients.
Consider the advantages and disadvantages of using email, letter or telephone. Recommend which is
the best method for Chris and Abdul to use. Justify your answer.
[12]

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4 BUSINESS STUDIES | Beaconhouse School System, Gujrat Campus

 BEACONHOUSE SCHOOL SYSTEM – GUJRAT CAMPUS Dated: 02-05-2018
REVISION TEST (SECTION 2)
9- Cambridge
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5 BUSINESS STUDIES | Beaconhouse School System, Gujrat Campus