2019_business studies_alevel_nov_paper2

Extracted Content: 2019_business studies_alevel_nov_paper2

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ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

General Certificate of Education Advanced Level

BUSINESS STUDIES 6025/2
PAPER 2

NOVEMBER 2019 SESSION 3 hours

TIME 3 hours
INSTRUCTIONS TO CANDIDATES

Write your name, centre number and candidate number in the spaces provided on the answer
paper/answer booklet.

Answer all questions in Section A and any three from Section B.
Write your answers on the separate answer paper provided.
If you use more than one sheet of paper, fasten the sheets together.

INFORMATION FOR CANDIDATES

The number of marks is given in brackets [ ] at the end of each question or part question.

You are advised to spend not more than 45 minutes on Section A.
The businesses described in this paper are entirely fictitious.
You are reminded of the need for good English and clear presentation in your answers

Calculators may be used,

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Answer all questions in this section. _ ie est ita Ty waite) Meas GE | 1 Read the passage below and answer the questions that follow. uae

| Hdd telreinenaat {ih}

Abatcha Fisheries (Pyt) Ltd

ae i |

Abatcha Fisheries (Pvt) Ltd is a company that was formed two years ago by four shareholde
The business is involved in the fishing of bass fish and distribution of the fish to small
retail outlets. The firm runs its own retail shop for supply of fish to local customers.

There has been an increase in demand for bass fish by households and retail outlets, The . :
increase in demand has necessitated the need to rent an additional boat to meet customer
expectations.

The firm has also invested in research and development in order to improve its methods of Zo!
fish harvesting and breeding of fish species. Following research activities, a new breed has. 4
been discovered that offers the benefit of early maturity. Feeding costs per fish are bound to
decrease due to this major discovery.

The firm’s management has recently identified a niche market made up of road-side vendors.
The company’s management is planning to convert the business into a public limited
company.

The managers have a keen interest in achieving a production output that provides the most
profitable outcome. The management has compiled some financial data to assist in production 4
planning. The data below shows the current production position of Abatcha Fisheries (Pvt) t

Ltd.

Breakeven output 300 fish :
Margin of safety 100 fish 3
Monthly rental for retail shop $1 000

Monthly rental for an additional boat $2 000

Monthly feeding costs per fish $2

(a) Explain the following terms as they are used in the passage.
(i) margin of safety, Bl

(ii) _ niche market.

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2 (a) _ Explain the importance of regional economic integration to business in . your country. [10] (b) Assess the contribution of training to a business organisation that sells 42 computer accessories. (15) 3 (a) Explain the financial incentives that can beused to motivate stall bya a os food outlet located in a busy shopping centre. Mee Pm (22) (b) Assess the contribution of informal leaders to a business organisation, {13] 4 (a) Explain the importance of effective communication to a business i organisation. 10) (b) Discuss the significance of Small to Medium Enterprises (SMEs) in your country. [15] 5 Evaluate the usefulness of a product life cycle to the production and marketing managers of a furniture manufacturing company. [25] 6 (a) Explain the importance of branding to an ice-cream manufacturer. [10] (b) Assess the different ways that can be used to improve productivity by any organisation of your choice. [15] 7 (a) Explain the costs associated with holding stocks. [10] (b) Evaluate the contribution of advertising in the marketing strategy of a company. 15] 8 (a) Explain the importance of effective working capital management toa ie business organisation. [10] (b) How useful are decision trees in supporting management decision ; making? OS]

9 To what extent

10 (a)

(b)

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Section B: Essays [75 marks] THEA

Answer any three questions from this section. had

are financial statements useful to stakeholders of a business?”

Explain the stages 0 of project formulation.
‘Evaluate the appropriateness ¢ of debt finance as a source ofc

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