Cambridge IGCSE

CANDIDATE NAME

BUSINESS STUDIES 0450/21

Paper 1 March, 2022

Time allowed: 1 hour and 30 minutes

You must answer on the question paper

No additional material are required

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READ THESE INSTRUCTIONS FIRST

Write your centre number, candidate number and name in the spaces at the top of this page.

Write in dark blue or black pen. You may use an HB pencil for any diagrams, graphs or rough working.

Do not use staples, paper clips, glue or correction fluid.

DO NOT WRITE IN ANY BARCODES.

Answer all questions.

The businesses described in this question paper are 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.

The total number of marks for this paper is 40.

1- Ray factory distributes quality wheat flour to local bakery manufacturing businesses . Ray has to
try increase quality of wheat flour. The factory has three friend own. One of the partners, Shall, wants
to growth their business by expanding 2 wholesales shops for distribution wheat flour in other towns. In
addition, he also wants to change their ownership form to a private limited company.

(a) Identify two stakeholder groups of Ray and how each involved in business activities.

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(b) which objective should be set expand their wholesale shops ? justify your answer

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(c) which types of business type of Ray factory is?

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(d) What is meant by ‘limited

liability’? .........................................................................................................................................................
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(e) Identify and explain differences between partnerships and private limited companies.

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(f) identify and explain two possible benefits to Ray factory of being private limited
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[Total 20 ]

2. Sasha is a hotel manager. She has 30 employees working for her in the following departments:
kitchen; restaurant; hotel reception; housekeeping (rooms). Sasha wants to increase the motivation of
the employees and is thinking of introducing a bonus or other motivation plans. She thinks it will make
the hotel more profitable.

(a) identify the two reasons why people work.

Reason 1
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Reason 2

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[4]

(b) identify and explain two wages payment for manual workers.

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(c) identify and explain two benefits to Sasha of having well motivated employees.

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(e) Do you think increasing the wage rate is the best way to increase the motivation of the employees at
the hotel? Justify your answer.

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[total 20]

End of the paper