Term 3 Revision

Name: ---------------------------- Year:10 Section: ------------

Date: / /2022

Subject: Business
Time Duration:
Paper Code: 4BS1 2 hrs
Year Group: 10
Name of the Subject Teacher: Total Marks: 100
Gayle Stephens marks

Instructions:
• Use black ink or ballpoint pen.
• Answer all questions.
 Write all the answers as per the space provided in the paper.
 A deduction of marks if any of the answers qualify as Plagiarism.
 Academic Integrity to be maintained at all times.

• Calculators may be used.

• You are advised to show all your working out with your answer clearly identified at the
end of your solution.
 Use of correction fluid is not allowed.

Information:
• The total mark for this paper is 100
• The marks for each question are shown in brackets – use this as a guide as to how much
time to spend on each question.

Advice:
• 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.

Subject: Business Year: 10 Term 3 Revision Page: 1

 SECTION A
Answer ALL questions. Write your answer in the spaces provided.
1. Lavender, a Malaysian business, started with bakery, patisserie and takeaway shops. It has
now developed into several other businesses. L.café is a self-serve café selling a variety of
cakes and drinks. L.bistro is a casual dining place with a selection of Asian foods. L.table is
a formal restaurant that uses high quality and organic ingredients.
(a) (i) Which one of the following is a phase of the product life cycle?
Select one answer (1)

 Star
 Place
 Maturity
 Branding

(ii) Which one of the following is an example of a fixed cost for Lavender?
Select one answer (1)

 Flour used in the cakes

 Packaging used for Lavender’s cakes
 Sugar used in production
 Rent for Lavender’s businesses

Lavender buys 150 kilograms (kgs) of yeast from Germany at a cost of €2 250. The exchange
rate is €1 = 5 Malaysian Ringgits (MYR).

(iii) How much does Lavender pay in MYR for the yeast?
Select one answer (1)

 750
 2,250
 11,250
 337,500

Subject: Business Year: 10 Term 3 Revision Page: 2

Lavender calculates the cost of the cakes it makes. The weekly fixed cost is 759 MYR. The
variable cost per cake is 4.70 MYR.

(iv) Calculate the total cost of selling 1,650 cakes in a week.

Select one answer (1)

 2,413.70
 3,567.30
 7,755.00
 8,514.00

(b) Define the term short-term finance. (1)

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(c) Define the term above the line promotion. (1)

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Lavender are offering a discount of 15% if customers buy 25 cakes. Each cake costs 12 MYR.
(d) Calculate the cost of buying 25 cakes. You are advised to show your working. (2)

Subject: Business Year: 10 Term 3 Revision Page: 3

(e) Explain one way of improving labour productivity. (3)
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(f) Give an example of new technology introduced in the secondary sector. (3)
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Subject: Business Year: 10 Term 3 Revision Page: 4
(g) Analyse the various stake holders involved with Lavender. (6)

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(Total for Question 1 = 20 marks)

2. (a) Transport bottlenecks due to excessive localisation of industries is an example of (1)

 Internal economies of scale
 Internal diseconomies of scale
 External diseconomies of scale
 External economies of scale

(b) Which of the following is not an example of internal economies of scale? (1)
 Cheaper material and equipment
 Division of labour and specialisation
 Smaller percentage of inventories to total output held
 Use of specialised capital equipment

Subject: Business Year: 10 Term 3 Revision Page: 5

 (c) State one example of land as a factor of production from the case study. (1)

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(d) State one example of labour as a factor of production from the case study. (1)

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(e) State one example of capital as a factor of production from the case study. (1)

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(f) Explain one way a business can use penetration pricing. (3)

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Subject: Business Year: 10 Term 3 Revision Page: 6
(g) Explain one reason why diseconomies of scale may occur in a business. (3)

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(h) The following two options are being considered:

Option 1: batch production

Option 2: flow production.

Justify which one of these two options Lavender should use. (9)

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Subject: Business Year: 10 Term 3 Revision Page: 7

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TOTAL 20marks

Subject: Business Year: 10 Term 3 Revision Page: 8

3. (a) (i) Which of the following is the main reason why a business would analyse it’s product
lifecycle (1)

 To launch a new product

 To create an advertisement
 To identify the marketing mix
 To identify when an extension strategy might be implemented

(ii) Which of the following is a factor of production? (1)

 Production line
 Quality control
 Capital
 Factory

(iii) Which one of the following is an external source of finance that could be used by a
company? (1)

 Debenture
 Share capital
 Selling assets
 Retained profits

(iv) Which one of the following is not part of the marketing mix? (1)

 Product
 Place
 Productivity
 Price

(b) State one potential problem with these research results for Lavender. (1)

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Subject: Business Year: 10 Term 3 Revision Page: 9

(c) Explain one disadvantage of market orientation for a business. (3)
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(d) Explain one benefit of using TQM methods for a business. (3)
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Option 1: primary market research

Option 2: secondary market research.

(e) Justify which one of these two methods Lavender should use.
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Subject: Business Year: 10 Term 3 Revision Page: 10
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(Total for Question 3 = 20 marks)

Subject: Business Year: 10 Term 3 Revision Page: 11

4. In order to acquire information on where the ‘greatest impact on customers’ lies the business
will have to conduct market research.

(a) Define the term ’research and development’. (1)

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(b) Define the term ‘target market’. (1)

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(c) Explain one benefit to a business of having a well-designed product. (3)

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(d) Analyse the benefits to Lavender of using internal sources of finance for its expansion
plans. (6)

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Subject: Business Year: 10 Term 3 Revision Page: 12

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(e) Quality has been an issue in the Lavender bakery in Malaysia. Recently there were two
product recalls, which were down to human error occurring on the production line.

In order to improve quality levels, Lavender is considering two options.

Option 1: Close down the factory and move operations to another more effective factory.
Option 2: Retrain staff on lean production techniques.
Subject: Business Year: 10 Term 3 Revision Page: 13
Justify which one of these two options Lavender should choose. (9)
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(Total for Question 4 = 20 marks)

Subject: Business Year: 10 Term 3 Revision Page: 14

5. (a) Define the term ‘revenue’. (1)
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(b) State one possible impact on Samsung of losing market share. (1)
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(c) Identify the method of market segmentation from below. (7)

Where someone is ___________________________________

How much someone earns _______________________
How long someone has lived ________________________________
The way someone lives, their interests and way of life ________________________________
Someone’s heritage can be classed as this _________________________________
Whether someone is male or female is their _________________________________
A way of judging a persons’ place in society is known as their
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(d) Outline one reason why Samsung has such a high cost of sales. (2)
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(e) Explain one benefit to a business of having a strong brand. (3)

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Subject: Business Year: 10 Term 3 Revision Page: 15

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(f) Analyse the impact of using personal savings as a source of finance to launch Lavender as a
business. (6)
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Subject: Business Year: 10 Term 3 Revision Page: 16