Business ethics & corporate social responsibility

Item C: Charlie Paul

State one method of good customer service.

Using Item C, explain one way in which CP focuses on sustainability.

The shopping centres that CP operates in are very busy. CP offers customers free services, such as gift wrapping and beauty demonstrations.

Analyse how CP might benefit from good customer service.

Item D: Charlie Paul

Employees receive 15% commission on the sale of extras.

Using Table 1, calculate the average daily commission paid by CP on key rings.

Show your workings.

Using Item D, calculate the daily wage costs of operating the Santa’s Grotto.

Show your workings.

The commission on extras is shared between all employees of the Grotto.

Explain one benefit of using commission to pay the Grotto employees at each CP store.

CP uses a range of technologies to communicate with customers.

Analyse how CP will benefit from the use of digital technology.

Item E: Charlie Paul

Increasing competition from online retailers is reducing CP’s sales. A large amount of cash is needed to develop its website. CP is considering two options.

1. Converting to a Plc.

2. Reducing the cost of supplies.

Analyse the effect of each of these two options for CP.

Evaluate which of these two options will have the biggest impact on CP’s ability to maintain its current objectives.

Which of the following is a method of sales promotion?

Which of the following is an example of an ethical objective?

In the product life cycle shown, what is the name of stage 2?

Which of the following is likely to occur if a business does not follow employment laws?

Which of the following is a feature of price penetration?

Which of the following is included in the average rate of return (ARR) formula?

Identify two ways a business might solve its cash flow problems.

Explain one reason why a business would choose a newspaper as a method of advertisement.

Identify one extension strategy a business can use and explain how it can increase sales.

Explain one advantage of using retained profits as a source of business finance.

Use the break-even chart below to calculate the margin of safety if the actual number of units sold was 60.

Show all workings.

State and explain two factors that influence pricing decisions for a business.

Item C: Solar Scene Ltd

Explain one negative impact a business may have on the environment.

Telesales staff at Solar Scene Ltd have excellent technical knowledge of the solar panels and can address concerns immediately.

Explain one reason why Solar Scene Ltd uses telesales to distribute solar panels.

The solar panel market is a growing market and in 2024 grew by 40%. The average sales revenue growth of competitors is 35%.

Analyse one way that the information in Solar Scene Ltd’s income statements would help potential investors decide whether to invest in the company.

Item D: Solar Scene Ltd

Explain one benefit for a business of using market segmentation.

Solar Scene Ltd has placed an order with its supplier for 8 solar panels. The total cost of the order is £12 000.

Using the information in Item D, calculate the cost of the order once the discount has been applied.

Show all workings.

Using the information in Table 2, calculate the gross profit margin for Solar Scene Ltd for 2024.

Show all workings.

Whilst the business grows, Karl will communicate with staff through monthly, instead of weekly, meetings.

Analyse one type of diseconomies of scale that may occur if Solar Scene Ltd expands quickly.

Item E: Solar Scene Ltd

Karl wants Solar Scene Ltd to expand into the business segment of the market. He is considering two options:

1. Apply for a government grant to build a factory in the UK

2. Merge with a manufacturer in China

Analyse the effect of each of these two options for Solar Scene Ltd.

Evaluate which of these two options will have the biggest impact on the ability of Solar Scene Ltd to be competitive in the business segment of the market.

Which of the following is a method of secondary market research?

Which of the following describes dividing potential customers into groups based on different characteristics?

Which source of finance could be given to a business to create jobs in areas of high unemployment?

Which of the following is the correct formula to calculate the margin of safety from a break-even chart?

Which of the following types of business ownership has shareholders, but cannot advertise its shares to the general public?

Which of the following is an advantage of trade credit for a business?

Identify two factors a business will consider before deciding on the promotional mix for its product or service.

Shareholders have a key objective of profit.

Explain one reason why this might cause conflict with a different stakeholder group.

Explain one problem a business might face when producing an effective business plan.

Explain one benefit to a business of being more environmentally friendly.

Table 1 Extract from an income statement

Using Table 1, calculate the gross profit margin.

Show all workings.

State and explain two pricing methods that a business can use.

Item C: Style the Chic (STC)

Using Item C, explain one benefit to Eve of being a sole trader.

Using the data in Table 1, explain one way in which competition affects STC.

Eve makes all the major decisions in the business.

Analyse one effect of Eve’s style of management on staff motivation.

Item D: Style the Chic

Identify one way a business’ production of goods and services could be sustainable.

Using data from Table 2, describe how the information indicates STC has experienced growth.

Using Table 2, explain one benefit to STC of its growth.

STC currently uses six suppliers. The amount paid to them is shown in Table 3.

Analyse one benefit to STC of effective supply chain management.

Item E: Style the Chic

STC wants to increase customer loyalty and is considering two options to achieve this.

1. Introduce live chat to the website to improve customer service.

2. Introduce a recycling scheme to improve the ethical behaviour of the business.

Analyse the effect of each of these two options on STC.

Evaluate which of these two options will have the biggest impact on customer loyalty for STC.

Which element of the marketing mix involves selecting a channel of distribution?

Which source of finance is available to a limited company but not a sole trader?

Which pricing method involves calculating the costs of production and adding a percentage to make a profit?

What is the name for the category of products in the Boston Matrix labelled X below?

Which method of growth involves employing another business to produce products or provide services?

Which of the following would be on a statement of financial position?

Explain what is meant by the term ‘economies of scale’.

Identify two ways business activity can have an impact on the environment.

Way 1

Way 2

Explain one way a business can minimise risk.

Explain one way that promoting a good or service can increase sales.

Use the break-even chart below to calculate the margin of safety in units if the actual number of units sold was 700.

Show all workings.

State and explain two extension strategies that can extend the life cycle of a product.