Paper 2: Operations, finance and influences on business

Which one of these is a feature of flow production?

Total quality management (TQM) means:

Which one of these is a factor in choosing a supplier?

Which location factor is most important for a bakery selling to passers-by?

Which one of these is a source of finance that does not need to be repaid?

Revenue is calculated as:

Which one of these is a variable cost for a pizza shop?

The margin of safety is:

Which one of these is an example of an ethical business practice?

A rise in the value of the pound against the euro is likely to make UK exports to Europe:

Which one of these is a feature of a recession?

Globalisation can be described as:

Which law requires businesses to keep customer information secure?

Which one of these describes 'customer service'?

Interest on a loan is a:

Case study (fictional business written for this paper): Greenfold Packaging Ltd makes compostable food boxes in Swindon using batch production. It sells 400,000 boxes a year at 25p each. Variable cost is 15p per box and fixed costs are £30,000 a year. A large fast-food chain wants 600,000 more boxes a year at 20p each. Greenfold's maximum capacity is 900,000 boxes. Calculate Greenfold's annual revenue from its current sales.

Calculate Greenfold's break-even output at its current price.

Calculate the margin of safety at current sales. Explain what it shows.

Explain two problems Greenfold may face if it accepts the order.

Analyse whether Greenfold should change from batch to flow production.

Evaluate whether Greenfold should accept the fast-food chain's order.

Case study (fictional business written for this paper): Harbour Street Hotel is an independent 40-room hotel in Whitby. Most guests are from the UK. Energy bills have risen sharply, and a new national hotel chain has opened nearby. State two ways the hotel could reduce its environmental impact.

Room revenue was £640,000 last year, and £720,000 this year. Calculate the percentage increase.

Explain one way a fall in the value of the pound might affect the hotel.

Explain two ways the hotel could use technology to improve customer service.

Analyse the impact of the new hotel chain on Harbour Street Hotel.

Evaluate the best way for Harbour Street Hotel to respond to rising energy costs.

Case study (fictional business written for this paper): Quayside Cycles is a sole trader planning to borrow £12,000 to open a second shop. State two sources of finance, other than a bank loan, Quayside Cycles could use.

The loan of £12,000 is repaid over 3 years with total interest of £1,800. Calculate the total monthly repayment.

Evaluate whether Quayside Cycles should open a second shop.