Notesale: Turn your study into money

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Now test yourself answers
Unit 1 The business environment 3 Understand the effect of different
1 Understand different types of
businesses and their objectives
1 A hotel provides a service (1 mark)
...

2 (c) (1 mark)
...
This puts at
risk the owner’s personal possessions (1 mark),
including own house and car, as they may need to
be sold to pay off the business’s debts (1 mark)
...
A community interest company
requires less paperwork (1 mark) because it is
not governed by the strict rules of the Charity
Commission (1 mark)
...

This means earning enough revenue to cover
business costs (1 mark)
...


2 Understand how the functional
areas of businesses work together
to support the activities of
businesses
1 (c) (1 mark)
...

3 Ordering raw materials (1 mark) so that stocks do
not run too low (1 mark)
...

5 The R&D function may be able to support the
sales function by listening to feedback from
customers (1 mark) and improving the product
design (1 mark)
...


organisational structures on how
businesses operate

1 A flexible structure which allows different
combinations of employees from several
functional areas (1 mark) to work on a specific
project (1 mark)
...

3 Empowerment is about equipping the workforce
so they can work on their own initiative (1 mark),
solving problems and making decisions without
having to refer to their superiors (1 mark)
...

5 The communication paths in a business with a tall
organisational structure will be long because the
messages have to pass through many levels
(1 mark)
...


4 Be able to use financial
information to check the financial
health of businesses
1 (b) (1 mark)
...
25
= £2,600,000 (1 mark)
...

£2,600,000 – £1,400,000 = £1,200,000 profit (1 mark)
...
33 (1 mark)
Break-even point = 9 boats (1 mark)
4 (a) A ssets (1 mark), liabilities (1 mark),
capital (1 mark)
...

5 The business had minus £10,000 (1 mark) in its
bank account (1 mark) at the end of June
...

To stop trees being cut down (1 mark), because
trees are needed to reduce our carbon footprint
(1 mark)
...
This means that the employees will not
work any additional hours, even if asked to do so
by their employer (1 mark)
...

Reduced cash inflows (1 mark), lower sales
revenue (1 mark), make a loss (1 mark)
...

2 The Copyright, Designs and Patents Act (1 mark)
...

4 The farm could use green energy (1 mark) to heat
the greenhouses, e
...
wind power (1 mark)
...
This will increase
the quantity of products that the business can
make (1 mark)
...
This will increase
its business costs (1 mark)
...

2 Using a credit card (1 mark) or an overdraft (1 mark)
...

4 One advantage of using a venture capitalist is that
in addition to the finance, the business will be able
to benefit from the expertise (1 mark) of the venture
capitalist
...
However, a
venture capitalist will become a part-owner of the
business (1 mark) and want a share of the profit
(1 mark)
...

5 (a) (1 mark)
...
Staff turning
up late for work (1 mark)
...

3 (d) (1 mark)
...
This should guide
future decision making (1 mark) and increase the
likelihood of business success (1 mark)
...
However, it was well under the target
in 2016–2017 (1 mark)
...
The average performance over the
three years is 2 per cent (1 mark) and so, while
not meeting the target each year, overall the
business’s performance is in line with business
targets (1 mark)
...

2 Reason 1 – to avoid fraud (1 mark); reason 2 – to
stay within budget (1 mark); reason 3 – to ensure
money is spent appropriately (1 mark)
...

4 The Equality Act (1 mark)
...


2 Understand factors that influence
the arrangement of business
meetings
1 Factor 1 – whether the meeting is internal or
external (1 mark); factor 2 – how urgent the
meeting is (1 mark)
...
This should be
accessible to participants (1 mark); factor 2 – the
cost (1 mark)
...


3 Be able to use business documents
1 ‘COD’ stands for ‘cash on delivery’ (1 mark)
...
‘E&OE’ stands for ‘errors and
omissions excepted’ (1 mark)
...

2 A statement of account is a record of the
transactions that have taken place within a
period of time (1 mark)
...

3 A variance is favourable when the actual outcome
exceeds the target set (1 mark)
...

4 Difference 1 – when a debit card is used money
is transferred from the payer’s account to the
payee’s account (1 mark); difference 2 – the money
reaches the payee’s account more quickly when a
debit card is used (1 mark)
...


4 Be able to prioritise business tasks
1 Reason 1 – workload (1 mark), when there are
a lot of tasks to be done (1 mark); reason 2 –
deadlines (1 mark), when certain tasks need to be
done within a certain period of time (1 mark)
...

3 Source 1 – business objectives (1 mark);
source 2 – budget set (1 mark)
...

5 To give a job to someone else (1 mark) so that they
can do it for you (1 mark)
...

2 Reason 1 – safety (1 mark), electronic copies can
be protected with a password (1 mark); reason 2 –
costs (1 mark), hard copies can be expensive to
print (1 mark)
...

4 Letters (1 mark), reports (1 mark)
...


Now test yourself answers

3 Reason 1 – participants are not local (1 mark);
reason 2 – urgency of the meeting (1 mark)
...
This must be within
the budget set (1 mark); factor 2 – timetables/
schedule (1 mark)
...


Unit 3 Business decisions
1 Understand factors to be taken
into account when making business
decisions
1 The nature of risk (1 mark)
...

2 A major decision which affects the entire
organisation (1 mark), e
...
a decision to move
production overseas (1 mark)
...

4 It gives the business the opportunity to judge the
strength of public opinion (1 mark), allowing them
to manage any external stakeholder conflict more
effectively (1 mark)
...
This will increase the expenses of the
business (1 mark), reducing the availability of
funds for future projects (1 mark)
...
The 45p gross profit for
each jar sold helps the manufacturer cover its
fixed costs (1 mark)
...


Cambridge Technicals Level 3 Business

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Now test yourself answers

5 –£4,000,000 (1 mark) + £910,000 (1 mark)
+ £2,490,000 (1 mark) + £3,750,000 (1 mark)
= £3,150,000 (1 mark)

3 Understand how human resource
information informs business
decisions
1 To give new workers (1 mark) the information they
need to do their job (1 mark)
...

3 The number of workers who leave the business
(1 mark)
...

Sandtec plc’s bricklayers’ productivity has fallen
over the years (1 mark)
...


4 Understand how marketing
information informs business
decisions
1 August = (£450 + £550 + £400)/3 = £1,400/3
= £467 (1 mark)
September = (£550 + £400 + £350)/3
= £1,300/3 = £433 (1 mark)
October = (£400 + £350 + £300)/3 = £1,050/3
= £350 (1 mark)
2 Cash cows (1 mark)
...

(b) The packaging (1 mark) for the shampoo is
likely to be different
...

4 The aims of the business (1 mark); whether a bank
loan can be obtained (1 mark)
...


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Cambridge Technicals Level 3 Business

5 Be able to use resource,
project and change management
information to inform business
decisions
1 The cost of the equipment (1 mark)
...

2 A Gantt chart gives a visual representation
(1 mark) of the order of activities (1 mark) for a
specific course of action
...

5 Creating a contingency plan allows the business
to return to normal as quickly as possible
(1 mark)
...


6 Be able to use information to make
and justify business decisions
1 Moderate risk (1 mark)
...

3 Vertical integration (backwards) (1 mark)
...

5 It will help the employee understand why the
business has made the decision it has (1 mark)
...


Unit 15 Change management
1 Understand the drivers of change
1 One technological driver of change in the primary
sector is an increased use of robotics (1 mark)
...
g
...
This has reduced
the labour-intensive (1 mark) nature of the sector
...

Consumers’ increasing concern about food waste
(1 mark)
...


2 Understand the key aspects of
theories of change management
1 One mark each for: strategy, structure, systems,
shared value, style, staff, skills
...
Hard elements are easy to identify
whereas soft elements are less clearly defined
(1 mark)
...

4 Short-term targets create motivation (1 mark)
when reached, convincing stakeholders that
change is achievable (1 mark)
...

Change (1 mark); communicate benefits of change
to stakeholders and execute change (1 mark)
...


3 Be able to plan for change, manage
change and overcome barriers
1 Reason 1 – to gain their support (1 mark); reason 2 –
to gain their opinions on change (1 mark)
...

3 A proactive approach anticipates change before
it happens (1 mark); while a reactive approach is
when change is implemented after something has
happened (1 mark)
...


5 Training existing staff (1 mark), recruiting new
staff with relevant skills (1 mark), outsource
project (1 mark)
...
These are
launch, growth, maturity and decline (1 mark)
...

3 Increase product range (1 mark); enter a new
market (1 mark)
...
This could slow down the
change process (1 mark), costing the business
more money (1 mark)
...


Now test yourself answers

4 Ageing workforce (1 mark), more women at work
(1 mark)
...


5 Be able to use data to monitor
change management in businesses
1 Output level (1 mark); waste level (1 mark)
...

3 Benchmarking is the process of comparing a
business with its competitors (1 mark) to evaluate
the current performance of a business (1 mark)
...

5 Shorter opening times mean customers have
less time to shop (1 mark)
...


Cambridge Technicals Level 3 Business

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