Unit 1 BICs

1 Describe the cycle of business. 1 marks

2 Distinguish between goods and services. 1 marks
3 Describe the factors of production 4 marks
4 Distinguish between production and 1 mark
consumption of goods and services
5 Describe the 3 sectors of industrial activity. 6 marks
Identify an example for each sector.
6 Explain the advantages and disadvantages of 6 marks
being a sole trader.
7 Distinguish between operating as a sole trader 4 marks
and a partnership.
8 Explain the costs and benefits of franchising 8 marks
for:

• the franchisor
• the franchisee
9 Outline reasons for establishing a multi- 4 marks
national company
10 Identify the features of a multi-national 2 marks
company
11 Explain the possible advantages and 6 marks
disadvantages to the host country of a MNC
operating there
12 Distinguish between a public sector 4 marks
organisation and a plc.
13 Explain why the government may choose to 3 marks
finance an organisation in the public sector
14 Describe the role of an entrepreneur in a 4 marks
business.
15 AG Barr is a plc. Describe 3 sources of 6 marks
finance that a PLC could use to finance the
building of a new factory. Justify your
choices.
16 Nestle and Cadbury have attempted to take 4 marks
over an American chocolate firm. This
takeover is an example of horizontal
integration. Identify and describe 2
alternative methods of growth.

17 Levi and Pepsi-Cola’s move into a new market is 6 marks

an example of growth. Describe other
methods of growth.
18 Identify reasons why might growth be an 4 marks
objective for a firm
19 Describe external factors that could affect 6 marks
the success or failure of a business like JD
Wetherspoon.

Unit 2 Business and ICT

1 Explain the costs and benefits of each of the 8 marks
following sources of information:

• Primary
• Secondary
• Internal
• External

2 A brochure would be useful to a person 6 marks

choosing a holiday.

Outline the limitations of the brochure as a

the only source of used to choose a holiday.
3 Discuss the value of other sources available to 6 marks
a person choosing a holiday.
4 Describe the main characteristics of a Local 2 marks
Area Network
5 Describe the main characteristics of a Wide 2 marks
 Area Network
6 Discuss ways in which advances in 6 marks
communication and file sharing enable remote
teams to collaborate in projects.
7 Describe the advantages to an organisation of 6 marks
having a website.
8 Describe how video conferencing could improve 3 marks
communication in a national organisation.
9 Describe the advances in technology which 6 marks
have made the decision to move to other
countries easier.
10 Discuss the effects of introducing new 6 marks
technology to an organisation.
11 Discuss the factors which might restrict an 5 marks
organisation’s use of modern technology.
12 Outline reasons why the government 3 marks
introduced the Data Protection Act.
13 Identify information which should not be 3 marks
freely available to everyone.
14 Distinguish between a data user and a data 1 mark
subject.
15 Describe the role of the Data Protection 1 mark
Registrar.
16 Information held by supermarkets would be 5 marks
covered by the Data Protection Act. Outline
the basic principles that the supermarkets
must follow under the Act.
17 Explain the impact of the Data Protection Act 4 marks
1998 on business organisations.
18 Describe the term “hacker”. 1 mark
19 Describe the reasons why the Computer 2 marks
Misuse Act was introduced.
20 Outline how a business can protect electronic 4 marks
information.
21 Making something illegal doesn’t necessarily 3 marks
 stop people doing it. Describe how a business
can stop people misusing their computer
systems.
21 Distinguish between a patent and a copyright. 2 marks
22 Describe the Copyright Designs and Patent 3 marks
Act 1988
23 Outline the offences that the Copyright 3 marks
Designs and Patent Act 1988 covers.
24 Identify bodies covered by the Freedom of 5 marks
Information (Scotland) Act 2002.
25 Describe the impact on an organisation of the 3 marks
introduction of the Freedom of Information
(Scotland) Act 2002
26 The ability of organisations to store, process 6 marks
and communicate vast amounts of information
has led to an increase in legislation designed to
protect individuals.

Describe three pieces of legislation designed

to protect individuals from misuse of
information. Your description should include
at least two facts about each piece of
legislation.

Unit 3 Decision Making

1 The manager of a chocolate manufacturer 5 marks
decides to introduce a new chocolate bar.

Describe the role of a manager in achieving

this objective.
2 Describe what is meant by each of the 6 marks
following types of decisions:

• Strategic
 • Tactical
• Operational
3 “POLICE TO MAKE SOCIETY SAFER” 4 marks

This is an example of one type of decision a

manage will make.

Describe two other types of decisions an

organisation could make. Give examples of
each in relation to the police force.
4 Marks and Spencer have the long term 4 marks
objective of growth.

Describe tactical and operational decisions

that would help them achieve this objective.
5 Describe the main internal influences 4 marks
(strengths and weaknesses) on an organisation.
6 Describe the main external influences 4 marks
(opportunities and threats) on an organisation
7 Explain the disadvantages of preparing a 3 marks
SWOT analysis.
8 Describe the costs and benefits of using 6 marks
decision-making tools such as SWOT analysis
and Structured Models in decision-making.
9 Tesco have decided to launch a new range of 4 marks
children’s clothing.

Suggest ways that Tesco might find out

whether the decision taken to launch the new
clothing range was the right one?
10 Explain internal constraints that could affect 3 marks
decision making
11 Explain how 5 stakeholders of a local council 5 marks
could influence decision making.
12 Describe the purpose of an organisation having 2 marks
 a mission statement?
13 Discuss the factors that might affect the 4 marks
quality of a decision taken by a manager.