Business Studies / Past papers

CAIE 7115 Business Studies Paper 1 — May/June 2023 Question Paper

The real May/June 2023 Paper 1 (Short Answer and Data Response) question paper for CAIE 7115 Business Studies (7115_s23_qp_12).

20 questions, 80 marks total.

Ask CIEMate to help you answer these questions.

1. Question 1a2 marks

   Identify two reasons why a business might offer training to its employees.

2. Question 1b2 marks

   Calculate the following values using Fig. 1.1:

3. Question 1c4 marks

   Outline two possible effects on FBW's break-even chart if the prices of its products are increased.

4. Question 1d6 marks

   Explain two benefits to FBW of having full-time employees.

5. Question 1e6 marks

   Do you think job production is the best method of production for a small business to use? Justify your answer.

6. Question 2a2 marks

   Identify two ways a business plan can help a business to reduce risk.

7. Question 2b2 marks

   Identify two possible reasons why a business might want to expand.

8. Question 2c4 marks

   Outline one advantage and one disadvantage to Gloria of using telephone calls as a method of communication with her employees.

9. Question 2d6 marks

   Explain two factors Gloria should consider when deciding whether to take on a business partner.

10. Question 2e6 marks

    Explain two methods of primary market research a business could use to find out the demand for a new product or service. Which would be the best method to use? Justify your answer.

11. Question 3a2 marks

    Define 'import tariff'.

12. Question 3b2 marks

    Identify two reasons why some markets can become more competitive.

13. Question 3c4 marks

    State the four stages of the business cycle.

14. Question 3d6 marks

    Explain one possible effect of the following changes on VVA when importing raw materials:

15. Question 3e6 marks

    Do you think retailers are the best channel of distribution for a manufacturing business to use? Justify your answer.

16. Question 4a2 marks

    Define 'retained profit'.

17. Question 4b2 marks

    Define 'current assets'.

18. Question 4c4 marks

    Outline two possible reasons why working capital is important for CPF.

19. Question 4d6 marks

    Explain one way each of the following stakeholder groups might be affected by CPF's plans to expand its business.

20. Question 4e6 marks

    Do you think it is better for a private limited company to use debt (e.g. a loan) or equity (issuing more shares) as a source of long-term finance? Justify your answer.