1

1 Define on-the-job training.

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]

2
TJM is a private limited company. It is a food retailer and has 450 shops. In 2021 TJM’s revenue increased
by $500 million. The Finance Director is analysing TJM’s financial statements. An extract is shown in table
below. The directors are planning to expand TJM by opening 20 new shops. TJM will have to carry out a
recruitment and selection process for 400 new employees.

Extract from TJM’s financial statements for 2021 ($m)

Non-current assets 400

Current assets 300

Current liabilities 240

Profit for the year 200

Do you think an interview is the best way for a large business to select new employees? Justify your answer.

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]
 2

3 BCZ is a multinational company which operates in 12 countries. It manufactures cement, a building material
used by construction companies, so quality assurance is important. Making cement creates external costs.
One of BCZ’s factories is located in country X. The government of country X plans to introduce new legal
controls that will reduce the maximum number of working hours from 45 to 35 hours per week.
Explain one possible effect on BCZ and one possible effect on its employees of the new legal controls that
will reduce the maximum number of working hours.

Effect on BCZ: ........................................................................................................................................

..................................................................................................................................................................

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

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

Effect on BCZ’s employees: ....................................................................................................................

..................................................................................................................................................................

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

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]

4
Define ‘off-the-job training’.

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]
 3

5 WTB is a private limited company. It manufactures breakfast cereals. WTB has 600 production workers in
its factory. Many of its employees are part-time.All employees receive training and managers use delegation.
The Human Resources Director is interested in using motivational theories to help improve employee
motivation. The directors plan to expand the business and are considering whether to convert WTB into a
public limited company.

Outline two benefits to WTB of having part-time employees.

Benefit 1: .................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

Benefit 2: .................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]
 4

6 VDN is a private limited company. One of VDN’s objectives is to be ethical. VDN produces office products
including pens and paperclips. All raw materials are imported. The Managing Director plans to introduce
new machinery to help lower average costs. This will require training for VDN’s 380 employees. The
Managing Director also wants to introduce Kaizen into the factory.

Do you think off-the-job training is the best method for a large business to use when introducing new
machinery? Justify your answer.

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]
 5

7 WTB is a private limited company. It manufactures breakfast cereals. WTB has 600 production workers in
its factory. Many of its employees are part-time.All employees receive training and managers use delegation.
The Human Resources Director is interested in using motivational theories to help improve employee
motivation. The directors plan to expand the business and are considering whether to convert WTB into a
public limited company.

Explain two reasons why training might be important to WTB.

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

..................................................................................................................................................................

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

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

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

..................................................................................................................................................................

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

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]
 6

8 SRB is a bank which provides loans to business customers. SRB plans to make 100 managers’jobs redundant
from its 80 branches. This would remove one level of hierarchy. This is part of its plan to save $1m in costs
over the next 2 years. The Managing Director said: ‘SRB is working with the trade union about this plan.
SRB will make more use of delegation.The bank has to respond to increased competition from online banks.
SRB could either advertise more or develop new products and services.’

Explain two factors SRB should consider when deciding which managers to make redundant.

Factor 1: ...................................................................................................................................................

..................................................................................................................................................................

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

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

Factor 2: ...................................................................................................................................................

..................................................................................................................................................................

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

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]
 7

9 MLC makes motorcycles. The Managing Director has been analysing MLC’s costs. To reduce average costs,
MLC plans to close its factory and 2 relocate production to another country. Only 50 of the existing employees
will be offered jobs at the new location. The trade union has been informed. All the new employees will be
given either on-the-job training or off-the-job training. This planned relocation will have an impact on MLC’s
income statement.

Do you think on-the-job training is a better method of training for a manufacturing business to use than
off-the-job training? Justify your answer.

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]
 8

10 Kane started LFP 8 years ago. LFP makes high quality furniture. LFP imports 40% of its materials including
wood. Kane knows there are many external influences on business activity including employment levels and
import quotas. As demand is increasing, LFP needs to recruit 5 additional production workers. Kane is busy
preparing a job advertisement. Having well-motivated employees is important to LFP. Kane is considering
either increasing wages or introducing profit sharing. Kane also thinks having a clear organisational structure
benefits a business.

Outline two factors Kane should consider when preparing the job advertisement.

Factor 1: ...................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

Factor 2: ...................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]

11 Identify two reasons why a business might downsize its workforce.

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

..................................................................................................................................................................

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

.................................................................................................................................................................. [2]

[Total: 2]

12 What is meant by ‘induction training’?

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]
 9

13 CHONS is a public limited company. The directors want to open a new coal mine. All the coal will be
exported. The Managing Director is hopeful that the Government will allow the coal mine to be opened. She
said: ‘CHONS always meets legal controls. In an area of high unemployment surely creating jobs is more
important than protecting the environment. Most stakeholder groups including shareholders and suppliers
are happy. CHONS will not be asking for any Government support.’

Information about the proposed coal mine

Planned output 50m tons per year

Number of years coal mine will
60 years
operate

Jobs created 10 000

Level of waste products causing
High
pollution

Risk of traffic problems High

Identify and explain two ways in which legal controls might affect CHONS.

Way 1:.......................................................................................................................................................

..................................................................................................................................................................

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

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

Way 2:.......................................................................................................................................................

..................................................................................................................................................................

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

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]
 10

14 Toddles is a children’s nursery. It is a tertiary sector business which provides childcare for children aged 2–5
years. It is a sole trader business. The business employs 4 full-time workers, who are all fully trained and
well-motivated. Each employee looks after 3 children. Last year, Toddles made a loss. ‘I don’t understand
it, we have fantastic employees and a good location’ said the owner. ‘I need to find ways to make the business
profitable.

Identify and explain two advantages to Toddles of having fully trained employees.

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

..................................................................................................................................................................

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

..................................................................................................................................................................

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

..................................................................................................................................................................

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

.................................................................................................................................................................. [4]

[Total: 4]