Paper 2: Building a business

Which one of the following is a method of organic growth?

Which one of the following sources of finance is only available to a public limited company?

Which one of the following is part of the design mix?

Calculate gross profit if revenue is £450,000 and cost of sales is £270,000.

Explain one advantage of globalisation for a UK business.

Explain one impact on a business's costs of behaving ethically.

Which one of the following is a feature of a centralised organisational structure?

State two methods of external recruitment.

Calculate net profit margin if revenue is £2.4 million and net profit is £180,000.

Analyse the impact on a business of introducing flexible working.

Which one of the following is a benefit of just-in-time stock control?

Sales rose from £640,000 to £800,000. Calculate the percentage increase.

Explain one way the choice of supplier can affect a business.

Analyse the benefits of e-commerce for a growing business.

Case study (fictional business written for this paper): Hartwell's is a family-owned bakery chain with 38 shops in the Midlands and a central bakery. It is a private limited company. Revenue last year was £14 million and net profit was £1.12 million. Competitors include national chains and supermarkets. Hartwell's is considering becoming a public limited company to fund growth. Explain one drawback to Hartwell's of becoming a public limited company.

Calculate Hartwell's net profit margin.

Analyse the benefits to Hartwell's of using a central bakery.

Hartwell's is considering two options. Option 1: launch a range of vegan products. Option 2: open drive-through shops on retail parks. Justify which one of these options Hartwell's should choose.

Hartwell's is considering two options for finance. Option 1: become a public limited company. Option 2: take out a large bank loan. Justify which one of these options Hartwell's should choose.

Case study (fictional business written for this paper): Lantern Robotics plc designs warehouse robots. It is growing fast and needs 60 more engineers. It has high staff turnover and engineers say there are few chances for promotion. State one method of training.

Explain one reason why Lantern Robotics should reduce staff turnover.

Lantern Robotics is considering two options. Option 1: introduce a graduate training scheme. Option 2: recruit experienced engineers from competitors with higher pay. Justify which one of these options Lantern Robotics should choose.

Evaluate whether rapid growth is good for Lantern Robotics. You should use the information provided as well as your knowledge of business.