Business Studies / Past papers

CAIE 7115 Business Studies Paper 1 — May/June 2021 Question Paper

The real May/June 2021 Paper 1 (Short Answer and Data Response) question paper for CAIE 7115 Business Studies (7115_s21_qp_12).

20 questions, 80 marks total.

Ask CIEMate to help you answer these questions.

1. Question 1a2 marks

   Define 'cost-plus pricing'.

2. Question 1b2 marks

   Define 'marketing mix'.

3. Question 1c4 marks

   Outline two reasons why offering a high quality service might be important for Pamela's business.

4. Question 1d6 marks

   Explain two advantages to Pamela of operating as a sole trader.

5. Question 1e6 marks

   Do you think operating in a niche market will help a small business have a better chance of success than operating in a mass market? Justify your answer.

6. Question 2a2 marks

   Define 'opening balance'.

7. Question 2b2 marks

   State two ways a business can increase productivity.

8. Question 2c4 marks

   Identify four sources of internal finance a business might use.

9. Question 2d6 marks

   Explain two possible effects on NPX's cash-flow forecast of introducing the new technology.

10. Question 2e6 marks

    Do you think it is better for a tertiary sector business to use full-time employees rather than part-time employees? Justify your answer.

11. Question 3a2 marks

    Define 'fixed cost'.

12. Question 3b2 marks

    Calculate the margin of safety for product X in 2020. Show your working.

13. Question 3c4 marks

    Outline two advantages to GHT of having a short chain of command.

14. Question 3d6 marks

    Explain one advantage and one disadvantage to GHT of using job rotation to improve employee motivation.

15. Question 3e6 marks

    Do you think the shareholders are the most important stakeholder group to the success of a limited company? Justify your answer.

16. Question 4a2 marks

    Define 'primary sector'.

17. Question 4b2 marks

    Identify two government economic objectives.

18. Question 4c4 marks

    Outline one external benefit and one external cost that Raul's business activity might create.

19. Question 4d6 marks

    Explain two advantages to Raul's business of selling direct to a manufacturer.

20. Question 4e6 marks

    Do you think the introduction of import tariffs is likely to have a greater effect than the introduction of import quotas on an exporting business? Justify your answer.