Booklet #1

BUSINESS STUDIES
PRE Q
TERM 1 EXAMINATION 2019

TIME: 1 Hour
TOTAL MARKS: 60

Name _________________________ Form________

Teacher________________________

INSTRUCTIONS TO STUDENTS:
Write your name, form and teacher’s name in the spaces provided at the top of each
booklet.
Do not use pencil, red or green pen, or correction fluid.
You must hand this booklet to the supervisor at the end of the examination.

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1. Michelle owns a successful restaurant. She is an autocratic leader. Michelle believes
that highly-motivated employees are very important. She employs three cooks in the
kitchen, two people serving at tables and one person at the cash desk. All
employees are paid the same weekly wage. Michelle wants to recruit a restaurant
manager.

(a) What is meant by an ‘autocratic leader’?

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(b) Identify two advantages to a restaurant of having highly-motivated employees.

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(c) Identify and explain one advantage and one disadvantage to Michelle’s employees of
them all being paid the same weekly wage.

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(d) Identify and explain two factors that Michelle should consider when recruiting a
restaurant manager.

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(e) Do you think that the motivation of the employees would increase if the new restaurant
manager used a democratic leadership style? Justify your answer.

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 Booklet #2

BUSINESS STUDIES
PRE Q
TERM 1 EXAMINATION 2019

TIME: 1 Hour
TOTAL MARKS: 60

Name _________________________ Form________

Teacher________________________

INSTRUCTIONS TO STUDENTS:
Write your name, form and teacher’s name in the spaces provided at the top of each
booklet.
Do not use pencil, red or green pen, or correction fluid.
You must hand this booklet to the supervisor at the end of the examination.

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2. After losing his job, Juan decides to become an entrepreneur. He wants to set up a shoe-
repair 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 start-ups.

(a) Identify two characteristics of a successful entrepreneur.

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(b) Identify two possible advantages to Juan of being a sole trader.

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(c) Identify and explain two ways in which a business plan might help Juan’s business.

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(d) Identify and explain two methods Juan could use to help build good customer
relationships.

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(e) Recommend to Juan whether he should choose a grant or free training from the
Government. Justify your choice.

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Booklet #3
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 BUSINESS STUDIES
PRE Q
TERM 1 EXAMINATION 2019

TIME: 1 Hour
TOTAL MARKS: 60

Name _________________________ Form________

Teacher________________________

INSTRUCTIONS TO STUDENTS:
Write your name, form and teacher’s name in the spaces provided at the top of each
booklet.
Do not use pencil, red or green pen, or correction fluid.
You must hand this booklet to the supervisor at the end of the examination.

Burell Buses

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3. Burrell Buses is a private limited company owned by Burrell and his family. The company
has grown quickly and profits have increased over the last two years.

The company has two main types of customers:

 Businesses hire the buses to transport their workers to and from work in the
morning and evening;
 Schools hire the buses to transport their students to and from school each day.

The problem for Burrell is that the buses are very busy in the morning and evening but are
not used for the rest of the day. His drivers sit around and the buses stay in the bus station.

Burrell has identified two options for expanding the business.

Option A: Offer tourist bus trips

Tourism is a growing business in the country and tourists like to visit areas of natural beauty
to see wild animals and ancient monuments. The tourist season is from February to May.
Forecast revenue from each tourist day trip is $300 per bus. The expected variable cost for
each bus day trip is $200, which includes the cost of a tourist guide.

Option B: City bus routes

Burrell Buses could operate bus routes that compete with other bus companies around the
city. To run these bus routes the company needs a licence from the local Government and
this costs $10 000 per bus each year. The cost of the licence has just been increased by the
Government. These bus routes run from early in the morning to late at night (6.00am to
12.00 midnight) 7 days a week. The estimated revenue from each bus per day is $400 and
the expected variable cost for each bus is $200 per day.

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(a) One of the objectives of Burrell Buses is higher profits. Identify and explain two other
objectives Burrell might have for the business.

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(b) If Burrell decides to expand the business he may need to employ more bus drivers and
tourist guides.
Do you think that Burrell should use on-the-job training or off-the-job training for each of
these types of employee?
Justify your answers.
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