2

Explain using examples, the difference between a need and a want.

Need : ..
..

[1]
Example : .
[1]
Want:
...
[1]
Example : ..
[1]

Does the fast-food company KFC provide a product or a service?

Explain your answer.
.......

..

[3]

Identify and explain THREE ways in which Levi Strauss & Co. adds value to

the
original blue denim material.
Method 1:

...
[2]

3
Method 2: ..
...
[2]
Method 3:

...
[2]

A cup of coffee in a caf of a well known multinational company costs $4.

The ingredient costs are:
Coffee

- $0.10

Milk

- $0.02

Takeaway cup

- $0.07

Work out the added in this example and analyse how the company adds this
amount of value to each cup of coffee.
Calculation: ...
...
[2]
Explantion Milk: ...
[2]
Explantion Takeaway cup:
.
......
[2]

4
5

Define and explain the business meaning of the term opportunity cost and
give your own example.
Defintion:
...

[1]
Explanation: ..

...
[1]
Example:
.
..
[1]

If the government of your country spends $10 million on road improvements,

what is the likely opportunity cost? Explain your answer.
Point:
..
[2]
Explanation: ..
.....
[2]

Identify and explain TWO reasons why a public enterprise must be careful
how money is spent by the organization.
Reason 1:

..
[2]
Reason 2:

..
[2]

Give TWO examples of organizations in your country that are owned and run
by the government. Explain their roles in your society.
Example 1:
[1]
Role : ..[1]
Example 2:
[1]
Role: [1]

Give ONE example from your country of a charitable organization and explain
the business objectives it is trying to achieve.
Example:
[1]
Objective 1: .
[1]

6
Objective 2: ....
[1]
Objective 3: .
[1]

10

Identify and explain the link between scarce resources and the need for
consumers and businesses to make choices.

....
...
[4]

11

Identify ONE example of business in your local area in each of the following
sectors:
Primary
Example: ..
[1]
Secondary
Example: ..
[1]
Tertiary
Example: [1]

12

Identify and explain TWO examples of businesses which operate in two or

more sectors.

7
Example 1: ...
[1]
Explanation: .
[1]
Example 2:
[1]
Explanation: .
[1]
13

For each of the following explain the extent of the business liability.
Sole trader: .

..
[1]
Partnership:

..
[1]
Company:

..
[1]

14

Suggest THREE reasons why governments set up public corporations.

Reason 1:
..
[1]

Reason 2:
..
[1]
Reason 3:
..
[1]

15

Why are public corporations sometimes privatized?

Reason 1:
..
[1]
Reason 2:
..
[1]

16

Identify and explain TWO ways that a company making and selling chocolate
bars could benefit from specialization.
Method 1:

..
[2]
Method 2: ......
[2]

9
17

Identify and explain TWO advantages and ONE disadvantage to a sole trader
of entering into a partnership.
Advantage 1:
.
..
[2]
Advantage 2:
.
...
[2]
Disadvantage: .
..
[2]

18

Shareholders are the most important stakeholder grouping in an organization

What argument would you put forward to support this view? What arguments
would you present against this view?
For: ...
..
[2]
Against: ..
..
[2]

10
19

Give an example and explain their roles for each of the following types of
stakeholders.
Internal stakeholders
Example : ... [1]
Role: .. [1]

External Stakeholders
Example: ..
[1]
Role: .. [1]

20

What type of business would you form if you wanted to do each of the
following? In each case, justify your choice.

(a)

Keep control of the business as the original owner.

Type of business: . [1]
Reason : ...

[1]

11

(b)

Access a foreign market where there are many legal and cultural
differences from your own country.
Type of business: . [1]
Reason : ...

[1]

(c)

Expand quickly without risking your own capital.

Type of business: . [1]
Reason : ...

[1]

(d)

Raise a lot of finance from a range of owners.

Type of business: . [1]
Reason : ...

[1]

21

State, in each business, who has control and what is/are the objective(s) of
each business.

(a)

Sole trader
Control: ... [1]

12
Objective(s): ...
[1]

(b)

Partnership
Control: ... [1]
Objective(s): ...

[1]

(c)

Incorporated business/ Company

Control: ... [1]
Objective(s): ...

[1]

(d)

Franchise
Control: ... [1]
Objective(s): ...

[1]

(e)

Joint venture
Control: ... [1]
Objective(s): ...

[1]

22

Classify the following according to whether they are primary, secondary or

tertiary AND private or public sector.

13

(a)

A state-run mining company

.

[1]

(b)

A telecoms company owned by shareholders

.

[1]

(c)

A small family-run hotel company

.

[1]

(d)

A government-owned steel manufacturer

.

[1]

(e)

A joint venture between a family business in China operating in

insurance
and a foreign company.
.
[1]

(f)

A postal service run by a government department

.

[1]

(g)

A school run by a non-profit organisation for the benefit of society

14
.
[1]