Cambridge O Level

BUSINESS STUDIES 7115/22

*9420386326*

Paper 2 Case Study May/June 2020

1 hour 30 minutes

You must answer on the question paper.

You will need: Insert (enclosed)

INSTRUCTIONS
• Answer all questions.
• Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs.
• Write your name, centre number and candidate number in the boxes at the top of the page.
• Write your answer to each question in the space provided.
• Do not use an erasable pen or correction fluid.
• Do not write on any bar codes.
• You may use a calculator.

INFORMATION
• The total mark for this paper is 80.
• The number of marks for each question or part question is shown in brackets [ ].
• The insert contains the case study.

This document has 12 pages. Blank pages are indicated.

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1 (a) Explain one benefit and one problem for ES of taking over other businesses.

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Problem: ...........................................................................................................................

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(b) Consider the financial information in Appendix 1. Which company should ES take over? Justify
your answer using appropriate ratios.

ABC Company: .................................................................................................................

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FGH Company: .................................................................................................................

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Recommendation: ............................................................................................................

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2 (a) Explain four ways a business plan can be useful.

Way 1: ...............................................................................................................................

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Way 2: ...............................................................................................................................

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Way 3: ...............................................................................................................................

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Way 4: ...............................................................................................................................

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(b) ES has been considering the following three methods of promotion for its products in export
markets. Which method should ES choose? Justify your answer.

• Advertise on national television

• Advertise on ES website
• Display its products in shopping malls

Advertise on national television:........................................................................................

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Advertise on ES website:...................................................................................................

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Display its products in shopping malls:..............................................................................

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3 (a) Explain two benefits to ES of higher productivity.

Benefit 1: ..........................................................................................................................

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Explanation:.......................................................................................................................

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Benefit 2: ..........................................................................................................................

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(b) Consider three methods of motivation ES could use for its production workers. Which is the
best method for ES to choose? Justify your answer.

Method 1: ..........................................................................................................................

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Method 2: ..........................................................................................................................

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Conclusion: .......................................................................................................................

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4 (a) Explain how the following four legal controls may affect ES.

• Control over misleading promotion

• Control over faulty products
• Control over location decisions
• Control over pollution

Misleading promotion:.......................................................................................................

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Faulty products: ................................................................................................................

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Location: ...........................................................................................................................

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Pollution:............................................................................................................................

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(b) Consider the effect on ES of the following two economic changes in country Z. Which change
is likely to have the biggest effect on ES’s profit? Justify your answer.

• Increasing unemployment
• Increasing inflation

Increasing unemployment: ...............................................................................................

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Increasing inflation: ...........................................................................................................

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