OCR A Level Business H431/01 Operating in a local business environment. QUESTION PAPER AND MARKING SCHEME. Rated A+

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Put a tick (✓) in the box next to the one correct answer for each question. 1 A job description should contain: (a) a deadline for applications (b) the characteristics of the successful applica... nt (c) the names of two referees (d) the responsibilities of the role [1] 2 Which of the following sources of finance is only available to a public limited company? (a) A share issue (b) Debentures (c) Debt factoring (d) Sale and leaseback [1] 3 HJ Construction plc builds houses which are then rented out by local councils. HJ Construction plc is an example of a: (a) secondary sector company which operates in the private sector (b) secondary sector company which operates in the public sector (c) tertiary sector company which operates in the private sector (d) tertiary sector company which operates in the public sector [1] 3 © OCR 2021 Turn over 4 A manufacturer makes meat-based and vegetarian soups. The market has recently experienced an increase in the supply of meat-based soups and an increase in demand for vegetarian soups. How should the manufacturer respond to these changes in market forces? (a) Adjust production levels in favour of vegetarian soups (b) Decrease the production of both types of soup (c) Increase the price of meat-based soups (d) Increase the production of meat-based soups [1] 5 Which of the following options only includes lean production methods? (a) ATR, Just in time and Kaizen (b) Cell production, DAGMAR and Kanban (c) Ergonomics, Jidoka and Porter’s Five Forces (d) Jidoka, Kaizen and Kanban [1] 6 A retailer wishes to open a new store at a cost of £11 million. Forecast net return figures, together with 15% discount factors, are shown in the table below. Year Forecast net returns (£ million) 15% discount factor 0 (11.0) 1.00 1 2.5 0.87 2 3.5 0.76 3 4.5 0.66 4 5.5 0.57 5 6.5 0.50 Based on the forecast net returns and a discount factor of 15%, the net present value (NPV) of this investment is approximately: (a) £3.2 million (b) £11.5 million (c) £14.2 million (d) £64.6 million [1] 4 © OCR 2021 7 A joint venture between two companies differs from a merger because: (a) both businesses must operate in the same country (b) neither company gains a competitive advantage (c) no change of business ownership is required (d) the two companies must be of similar size [1] 8 Political uncertainty is most likely to lead to: (a) a reduction in threats from the external environment (b) an economic boom caused by stable exchange rates (c) an increased need for contingency planning (d) improvements in the accuracy of financial forecasts [1] 9 Which of the following is unlikely to be a barrier to effective communication for a sole trader? (a) Complexity of information (b) Size of the business (c) Skill of the sender (d) Technical difficulties [1] 5 © OCR 2021 Turn over 10 A charity is planning a fundraising event. An extract from its decision tree is shown below. Cost of prizes Good response 0.7 £8000 Estimated Monetary Value (EMV) Poor response 0.3 £2000 £1000 1 2 The expected value (EV) at node 1 is: (a) £4000 (b) £5200 (c) £6000 (d) £7200 [1] 11 Which of the following is a benefit of being a franchisee? (a) Entrepreneurial freedom (b) Keeping control of the brand (c) Regular royalty payments (d) The availability of specialist advice [1] 12 According to the hierarchy of objectives, which of the following is tru [Show More]

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