Business Studies / Past papers

CAIE 7115 Business Studies Paper 2 — October/November 2020 Question Paper

The real October/November 2020 Paper 2 (Case Study) question paper for CAIE 7115 Business Studies (7115_w20_qp_22).

8 questions, 80 marks total.

Ask CIEMate to help you answer these questions.

1. Question 1a8 marks

   Explain two reasons why finance is needed by CC.

2. Question 1b12 marks

   Explain the benefits and limitations of the following two ways of achieving quality production. Which way should CC use? Justify your answer. • Quality control • Quality assurance

3. Question 2a8 marks

   Explain two possible reasons why Aisha set up CC as a business partnership.

4. Question 2b12 marks

   Consider the advantages and disadvantages of the following three methods of employee selection. Which method should CC use when recruiting production workers? Justify your answer. Application form • Interview • Aptitude tests •

5. Question 3a8 marks

   Explain two reasons why a new business is at a greater risk of failing than an established business.

6. Question 3b12 marks

   Consider the following three elements of a suitable marketing mix for CC's new range of personalised mobile phone covers. Justify which element is the most important. Pricing method • Method of promotion • Place - distribution channel •

7. Question 4a8 marks

   Using the data in Appendix 3, calculate the following ratios for CC: Gross profit margin • Profit margin • Current ratio • Acid test ratio • Show your workings.

8. Question 4b12 marks

   Consider how the changes in the following three government legal controls could affect CC. Which change is likely to have the greatest effect on profit? Justify your answer. Increase in the minimum wage • More controls over what can be stated in advertisements • No waste plastic can be sent to landfill sites •