Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email :
[email protected] Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email :
[email protected]Instructions
Use black ink or ball-point pen.
Full in the boxes at the top of this page with your name, center number and candidate
number.
Answer all questions.
Answer the questions in the spaces provided – there may be more space than you
need.
Information
The total mark for this paper is 80.
The marks for each question are shown in brackets – use this as a guide as to how
much time to spend on each question.
A calculator may be used.
Advise
Read each question carefully before you start to answer it.
Try to answer every question.
Check your answers if you have time at the end.
Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email :
[email protected] Answer ALL questions. Write your answers in the spaces provided.
Some questions must be answered with a cross in a box ⊠. If you change your mind about an answer,
put a line through the box ⊠ and then mark your new answer with a cross ⊠.
Erin’s Choice (EC Ltd) is a family business owned by two sisters, Erin, the managing directors and Layla,
the finance director. EC Ltd is based in Birmingham (UK), where they make high quality chocolates that are
expensive to buy.
The handmade chocolates are only sold through the internet. Customers must register their personal details
on the EC Ltd website before making their first order. Once registered, customers can order chocolates and
select the delivery date. The chocolates are made in small quantities so that all deliveries are fresh.
The popularity of EC Ltd chocolates has grown over the years and there is increasing interest from
customers outside the UK wanting to buy the chocolates. At the moment EC Ltd does not accept orders from
outside the UK.
Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
Question 1: (a) (i) EC Ltd is in which industry? Select one answer. (1)
A. Enterprise
B. Labor
C. Secondary
D. Primary
(ii) People who eat the chocolates that have been bought for them are. Select one answer. (1)
A. Employers
B. Consumers
C. Seller
D. Buyers
(iii) Which one of the following types of business ownerships would usually be formed by a
business of two solicitors?
(1)
A. Partnership
B. Sole trader
C. Public Corporation
D. Private limited company
(iv) Which one of the following is a benefit to a person of buying a franchise?
Select one answer. (1)
A. The person can buy supplies from any supplier
B. The person is given support from an established business
C. The person is guaranteed a set wage.
D. The person shares their profit with the franchisee
Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email :
[email protected] (v) Which one of the following best defines the role of entrepreneur? Select one answer. (1)
A. Someone who enjoys working in the services sector
B. Someone who wants to avoid paying income tax
C. Someone who owns and runs their own business and takes risks
D. someone who runs a business while the owner is away on holiday.
(vi) Which one of the following objectives is most likely to be adopted by a business intending to
expand? (1)
A. Improve efficiency
B. Maintain market share
C. Reduce costs
D. Open new stores
(a) Define the term “ primary sector”. (1)
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(b) State one non-financial objective for EC Ltd. (1)
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(c) State one example of a stakeholder in EC Ltd. (1)
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(d) Explain one reason why EC Ltd would want to grow. (2)
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
(e) Explain one reason why market conditions can affect business objectives. (3)
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EC Ltd operates as private limited company as it has grown over the years.
(f) Analyze the advantages and disadvantages to EC Ltd of operating as a private limited company. (6)
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
Question 2: (a) State one way of measuring the success of a business such as EC Ltd . (1)
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(b) State one non-financial aim of a business. (1)
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(c) Draw lines to match each objective on the left with the relevant stakeholder on the right.
(3)
Objective Stakeholders
1. Value for money a. Local community
2. Good employment conditions b. Government
3. High profits, to get a return on c. Workers
their shares
4. Collecting tax on business d. Suppliers
revenue
5. Reliable payment for orders e. Managers
f. Competitors
g. Customers
h. Owners
(d) Explain one benefit of a business of being a partnership. (3)
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
(e) Explain one possible reason why competition may affect a business ‘s choice of
objective. (3)
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Erin’s Choice (EC Ltd) wants to measure the success of their business.
(f) In order to measure the success of EC Ltd business, he is considering the following options
Option 1: Market share
Option 2: Owner independent and control
Justify which one of these methods EC Ltd should use. (9)
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
Question (3) : As a consequence of the popularity of EC Ltd chocolates, it has taken advantage of
globalization. The research department recruits product specialist from several countries. Raw materials are
imported and the better product are exported to outside the UK. However, EC Ltd did not want running their
own business because of managing a high level of risk. Therefore, they are consider taking out a franchise
with Happy Hour, franchise operation providing high quality chocolates all over the world.
(a) What is meant by “ globalization ? (1)
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(b) Identify and explain two benefits of globalization to EC Ltd. (2)
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(c) Identify and explain two threats from globalization to EC Ltd. (2)
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
(d) Analyze the possible factors that a business that exports its products should consider when
choosing a location for its factory. (6)
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(e) EC Ltd is considering two options to start up their own hand -made chocolates business.
Option 1: Buy the Happy Hour franchise
Option 2: Set up their own business
Justify which one of these two options EC Ltd should choose. (9)
Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
Question (4) : “ Making higher profits and raising returns to our shareholders are our most important
objectives” , said the Managing Director of EC Ltd to their other senior managers recently.
(a) Identify and explain one possible reason why EC Ltd has profit as an objective. (2)
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(b) Outline one conflict that might exist between two of the groups of stakeholders in EC Ltd.
(2)
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(c) Do you agree with the Managing Director when he said that shareholders are the most important
stakeholder group? Justify your answer. (4)
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
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In the future, if EC ltd continues to be successful, Erin and Layla hope to set up in converting
their family business like private limited company into public limited company. They believe
that this would be the best way to grow the business.
(d) Evaluate the future growth options for EC Ltd. Justify your answers. (12)
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
______________________________ The End
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Helix International School
Edexcel Approved Center No. 94981
Address : No(301), Shwedagon Pagoda Road, Dagon Township,Yagon
Phone : 09 51 868 53, 09 969 012 200, 09 78885 3020, 09 78885 2020
Email : [email protected]
