(a) Name any two forms of non-financial motivators managers may use.
[2]
1. Promotion opportunities
2. Recognition and praise
(b) Evaluate the importance of McGregor’s Theory X to a firm’s management.
[4]
Theory X helps managers understand that some workers may need close supervision and
strict control.
It assists management in setting rules and monitoring performance to improve
productivity.
It is useful in firms where employees are less motivated or unskilled.
However, too much control may lower employee morale and reduce creativity.
(a) State any two measures of central tendency. [2]
1. Mean
2. Median
(b) Analyse the importance of a network diagram to a construction firm. [5]
It helps the firm plan activities in the correct order.
It identifies the critical path and important tasks.
It helps managers estimate project completion time.
It improves coordination of labour, materials, and equipment.
It reduces delays and assists in controlling project costs.
(a) Identify any two problems encountered when drawing up a project proposal.
[2]
1. Lack of accurate information
2. Limited financial resources
(b) Explain the purpose of the Executive Summary in a business plan. [4]
It gives a brief overview of the whole business plan.
It highlights the main goals and objectives of the business.
It helps investors or lenders quickly understand the business idea.
It attracts interest and encourages readers to read the full plan.
(a) State any two unethical issues practised by businesses. [2]
1. False advertising
2. Selling substandard products
(b) Explain the advantages of lean production to a firm. [4]
It reduces waste and lowers production costs.
It improves efficiency and productivity.
It helps produce goods faster.
It improves product quality and customer satisfaction.
(a) Give any two approaches to costing. [2]
1. Absorption costing
2. Marginal costing
(b) Assess the usefulness of Accounting Rate of Return (ARR). [4]
ARR helps businesses measure profitability of an investment.
It is simple and easy to calculate.
It helps compare different investment projects.
However, it ignores the time value of money, making it less accurate.
(a) Distinguish between time-rate and piece-rate systems of remuneration. [4]
Time-rate system pays workers according to hours worked.
Piece-rate system pays workers according to output produced.
Time-rate focuses on time spent working.
Piece-rate encourages higher productivity and efficiency.
(b) Evaluate the significance of forecasting to a business. [4]
Forecasting helps businesses plan for the future.
It assists in budgeting and resource allocation.
It helps managers predict demand and sales trends.
It reduces risks and improves decision-making.
7 (a) Define a cost centre. [2]
A cost centre is a department, section, or unit in a business where costs are incurred and
controlled for accounting purposes.
7 (b) (i) Calculate the debtors’ / trade receivables’ collection period. [2]
[
\text{Collection Period} = \frac{\text{Trade Receivables}}{\text{Credit Sales}} \times 365
]
[
= \frac{30,000}{120,000} \times 365
]
[
= 0.25 \times 365
]
[
= 91.25 \text{ days}
]
Answer: ≈ 91 days
7 (b) (ii) What are the benefits of calculating trade receivables’ collection period
to the business? [2]
It helps the business monitor how quickly customers pay their debts.
It assists management in improving cash flow and credit control.
8 (a) Explain the problems of grapevine in business communication. [4]
Grapevine communication may spread false or inaccurate information.
It can create confusion and misunderstandings among employees.
Rumours may damage employee morale and relationships.
It may reduce trust in management if workers rely on rumours instead of official
communication.
8 (b) Describe the role of Information and Communication Technology to the
Human Resources Department. [4]
ICT helps keep employee records electronically for easy access and storage.
It assists in recruitment through online applications and interviews.
It improves communication between management and employees through emails and
messaging systems.
ICT helps in payroll processing and employee performance monitoring.
9 Examine the relevance of a matrix structure to a large organisation. [4]
A matrix structure improves coordination between departments and projects.
It allows employees to share skills and expertise across different functions.
It increases flexibility and faster decision-making in large organisations.
However, dual authority may cause conflicts and confusion among employees.
10 Evaluate the importance of privatisation to the economy of your country. [4]
Privatisation improves efficiency and productivity in organisations.
It reduces government expenditure and financial burden.
It encourages private sector investment and competition.
However, it may lead to job losses and higher prices for consumers.
11 Justify the reasons why managers may use memos in business communication.
[4]
Memos provide written evidence and records for future reference.
They are useful for communicating internal information quickly.
Memos help give instructions, announcements, and reminders clearly.
They are cheaper and more convenient for internal communication.
12 Evaluate the benefits of all-channel communication network to an educational
institution. [5]
It allows free flow of information among all members.
It encourages teamwork and participation in decision-making.
Problems can be solved faster because everyone can communicate directly.
It improves relationships between staff, students, and management.
However, too much communication may lead to information overload and confusion.
13 (a) State any four functional managers mentioned on the passage and any one
responsibility of each. [8]
Functional Manager Responsibility
Production Manager Supervises production of bread and confectionery products
Marketing Manager Promotes and advertises bakery products
Human Resources Manager Recruits and manages employees
Finance Manager Controls and manages business finances
13 (b) (i) Using the table above, calculate Sinyati Bakery’s market share for the
year 2013 and 2014. [4]
Formula:
[
\text{Market Share} = \frac{\text{Business Sales}}{\text{Total Market Sales}} \times 100
]
2013
[
= \frac{50,000}{90,000} \times 100
]
[
= 55.6%
]
2014
[
= \frac{95,000}{150,000} \times 100
]
[
= 63.3%
]
Answers:
2013 = 55.6%
2014 = 63.3%
13 (b) (ii) Explain the possible reasons why the firm’s market share failed to
increase in the year 2015. [4]
Increased competition from other bakeries reduced sales.
Economic challenges may have reduced customer purchasing power.
Poor marketing and promotion may have affected demand.
Product quality or customer service problems may have caused customers to switch to
competitors.
14 Analyse the passing average used by the firm to survive in a crisis. [8]
The business diversified by producing both bread and confectionery products.
It introduced innovative products such as whole wheat bread.
The firm improved customer satisfaction through quality products.
It expanded into new markets and increased distribution channels.
Management used market research to identify customer needs.
The bakery improved efficiency in production to reduce costs.
Teamwork among managers helped the business make better decisions.
Good customer relations helped retain loyal customers during difficult times.
Analyse pricing strategies used by the firm to increase their sales. [8]
The firm may have used penetration pricing by charging low prices to attract more
customers and increase sales volume.
It may have used competitive pricing to match or charge prices lower than rival
bakeries.
The bakery could have used promotional pricing, such as discounts and special offers,
to encourage customers to buy more products.
The firm may have used psychological pricing, for example charging prices like $0.99 to
make products appear cheaper.
It may have applied product line pricing by charging different prices for different
bakery products according to quality and size.
The bakery could have used cost-plus pricing to ensure prices covered production costs
while still earning profit.
It may have introduced bundle pricing, selling several bakery products together at a
reduced price.
Flexible pricing strategies helped the firm attract customers, compete effectively, and
improve market share.
Evaluate the benefits of producing quality products. [10]
Producing quality products improves customer satisfaction because customers receive
goods that meet their expectations.
High quality products help the business build a good reputation and positive image in the
market.
Customers are more likely to become loyal and make repeat purchases when products are
reliable and durable.
Quality products help the firm gain a competitive advantage over rival businesses.
The business may increase sales and profits due to higher customer demand.
Producing quality goods reduces customer complaints, returns, and wastage.
It helps the firm attract new customers through positive word-of-mouth advertising.
Quality products can allow the business to charge premium prices and increase revenue.
The firm may improve market share because customers prefer trusted brands.
However, maintaining high quality may increase production costs due to better materials,
skilled labour, and strict quality control measures.