1
Unit 2 Sample Questions
1 Convenience Foods Ltd is a large food producer which makes and sells a wide range of
ready meals and soft drinks to major supermarkets and other food outlets.
(a) Identify and explain one reason why businesses such as Convenience Foods Ltd exist.
[2]
To provide supermarkets with ready meals and soft drinks to
sell.
To make a profit by selling ready meals and soft drinks to
supermarkets.
(b) State and explain one reason why businesses may join together. [3]
To cut costs because when businesses join together,
they may be able to get rid of double costs (ie:
instead of having two Marketing managers when
they are separate businesses, they now only need
one)
(c) Fig. 1 below shows the change in the level of UK employment in the secondary and tertiary
sectors between 1950 and 2010.
UK Employment by sector 1950-2010
80
60
Tertiary Sector
Employment
40
Secondary Sector
Employment
20
0
1950
1980
2010
i – Using the diagram, identify the trend shown in the secondary sector and explain one
reason for this trend.
The secondary sector is decreasing because
machinery has replaced humans in factories and UK
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factories have been moved to other countries where
labour cost are much cheaper.
ii – Using the diagram, identify the trend shown in the tertiary sector and explain one reason
for this trend.
[6]
The tertiary sector is increasing because the population
has increased and more services (ie: hospitals and
schools) are needed and people have more disposable
income than in the past therefore they have more money
to spend in shops, at the cinema, etc.
(d) Explain why Convenience Foods Ltd may be said to be in the secondary sector and why
supermarkets may be said to be in the tertiary sector.
[4]
Convenience Foods Ltd is in the secondary sector
because they make the ready meals and soft drinks. The
supermarkets are in the tertiary sector because they
provide the service of having a wide range of foods
available for customers to buy.
(e) State and explain one reason why Convenience Foods Ltd might be dependent on other
businesses in the local area.
[2]
Convenience Foods Ltd would be dependent on farms in
order to get the ingredients for their ready meals.
(other businesses they rely on would be: the
supermarkets, bank, transport/delivery companies,
packaging companies, internet providers . . .)
(f) Analyse one way in which using ICT may be helpful to Convenience Foods Ltd in running their
business.
[4]
Convenience Foods Ltd can use ICT to keep track of the
money they are earning from the supermarkets and to
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keep track of how much they are spending on
ingredients, transport, packaging, etc. This is much
quicker and more accurate than having people do this.
However, a downside to using ICT to keep track of
finances is that the computer could malfunction, crash
or get hacked.
(g) Identify and explain two business objectives Convenience Foods Ltd might have.
[4]
Convenience Foods Ltd’s first objective is to make profit
selling their ready meals and soft drinks to
supermarkets. Their second objective is to provide a
good service of supplying the ready meals and soft
drinks to the supermarkets.
(h) Identify and explain two factors which Convenience Foods Ltd may have considered when
deciding on the location of their shop.
[4]
One factor which Convenience Foods Ltd should
consider when deciding on their location is how close
farms and other ingredient suppliers are so that they
know they will be getting fresh ingredients. Another
factor they should consider is the infrastructure of the
area – making sure roads will be suitable for deliveries,
and electricity and internet is available.
(i) In 2008, Convenience Foods Ltd employed 150 people, 50 of which were paid at the national
minimum wage. Three of these were Daniel 23, James 20, and Natasha 17.
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i) Daniel, James, and Natasha each work 30 hours a week. Explain who would gain the most
by the changes shown above.
[2]
Daniel will gain the most because his wage will
increase by £2.27 per hour and James’ will only
increase by £0.23 per hour and Natasha’s will only
increase by £0.07 per hour.
ii) Using the table above, discuss the possible significance to Convenience Foods Ltd of the
forecast changes in the national minimum wage.
[5]
If NMW increases, Convenience Foods Ltd will have
to pay more labour costs. This means if they keep
their prices the same, they will not make as much
profit. If they want to make the same amount of
profit, they will have to increase their prices or find
ways to cut costs elsewhere. However, since only 50
of Convenience Foods Ltd’s employees are paid the
NMW, it might not have much significance to their
total costs (especially if the majority of the NMW
workers are 16-17 years old because their wage only
increases by £0.07 per hour).
(j) The figure below shows part of the internal organizational structure of Convenience Foods Ltd:
i) What is the Managing Director’s span of control?
[1]
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ii) Explain what is meant by the term chain of command. Use an example from the
organizational chart to support your answer.
[2]
Chain of Command is the path information travels in
an organization. Example: Board of Directors to the
Managing Director to Administration Manager to the
Administration Assistants.
iii) Explain why businesses such as Convenience Foods Ltd have a Finance department.
[3]
Adminstration – answer phones, take messages, look after
paperwork such as letters, files, look after post
Finance – looks after the money of the business – income
from selling products and expenditures/costs such as rent,
wages, materials . . . the finance department keeps track of
all of this.
Human Resources/Personnel – looks after employee files,
deals with employee issues (such as hiring, firing, training,
arbitration)
Marketing – deals with the advertising and sales promotions
Production – in charge of actually making the product, need
to consider equipment, make sure enough supplies are
ordered, make sure employees are trained and scheduled to
work, quality control
(k) Explain how the opening of Convenience Foods ltd may be good for other businesses in the area.
[2]
It is good for supermarkets because they will pay less
for delivery and the ready meals will arrive quicker
because Convenience Foods is now in the same area as
them.
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(l) By 2011, Convenience Foods ltd had become profitable and now employed 40% more employees
than in 2008.
i) One reason why Convenience Foods ltd had become profitable is because it introduced
Total Quality Management (TQM) into its production process. Explain the meaning of TQM.
[2]
Total Quality Management (also called Quality
Assurance) is when ALL the workers in the
production process are responsible for the quality of
the product. (Instead of just one team of inspectors
which test the quality at the end of the process – this
is Quality Control)
ii) Explain one advantage and one disadvantage to Convenience Foods ltd of employing 40%
more employees than in 2005.
[4]
An advantage is that there will be more workers
available to produce the ready meals and soft drinks
which means more can be produced at a faster rate.
A disadvantage is that it will cost Convenience Foods
more money to pay these extra workers.
(m) Explain one way in which Convenience Foods ltd and its employees may benefit because the
business complies with the Health and Safety at Work Act. [4]
A benefit to Convenience Foods’ employees is that they
are less likely to get injured. A benefit to
Convenience Foods is that they will have a healthy
workforce and if someone does happen to get
injured, they won’t be able to sue them because they
have followed the rules.
2 Brittair plc flies customer to destinations throughout Europe. It sells directly to customers
over the internet and in its shops throughout the European Union.
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(a) State and explain one advantage and one disadvantage to Brittair plc of operating as a public
limited company.
[4]
One advantage is that Brittair can raise a lot of money
(capital) because anyone can buy shares. They can
use this money to buy their planes.
Another advantage is that the owners have limited
liability which means they are not personally
responsible for the debts of the business. This is
good in case Brittair crashes a plane, the owners will
not be responsible for paying compensation to all
the affected families.
One disadvantage is that not all of the shareholders may
have Brittair’s best interests at heart. For example, if
Brittair needs to invest in new airplanes, the
shareholders may vote to give out dividends
instead.
(b) Brittair plc will have many stakeholders. Identify two stakeholders and explain why each one may
have an interest in Brittair plc.
[4]
The pilots are a stakeholder because they work for
Brittair and they receive their salary from them.
Customers who want to fly around Europe are
stakeholders because they want to be able to fly
with Brittair.
Other examples of stakeholders to Brittair: cabin crew,
government, airports, plane food company, travel
agencies . . .
(c) Brittair plc uses e-mail to communicate with its customers. Explain one advantage and one
disadvantage to Brittair plc of using e-mail this way.
[4]
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An advantage is that Brittair can send communication
quickly. This means if there is a flight cancellation,
Brittair can inform their customers immediately.
However, a disadvantage is that some customers may
not check their e-mails regularly. This means if
Brittair sends important information via e-mail, these
customers may not receive the message in time.
(d) Explain why Brittair plc should produce a Job Description and a Person Specification when
recruiting workers.
[4]
Brittair should produce a Job Description so that pilots
and cabin crew who are applying for jobs will know
the hours and duties required for the job.
Brittair should produce a Person Specification so that
only pilots with the correct license, degree,
experience, etc, apply for the job.
(e) Identify three places Brittair could place their Job Advert. [3]
Newspapers, job centres, internet, airports (shop
windows)
(f) To select two new employees, Brittair’s human resources department followed the procedure
shown below:






Shortlist 5 applicants
Spread interviews over 20 days
Have 10 employees on the interview panel
Ask each applicant the same questions
Ask each female applicant the following two questions:
1) Who will look after their child after school?
2) If applicants have not got a child, “are they
planning to have children in the future”?
Send out acceptance and rejection letters two weeks after
the final interview.
Advise the Human Resource Manager on whether or not the recruitment procedure is an effective
use of the company’s time and money. Your answer should refer to both the good points and bad
points of the recruitment processes in your answer.
[6]
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The good points are that they are shortlisting 5
candidates and asking each applicant the same
questions because that is fair.
The bad points are that the interviews are spread over
20 days which is too long, they are breaking the sex
discrimination act by asking female applicants extra
questions, 10 employees on the interview panel are too
many and a waste of company time and money, and
sending out the acceptance/rejection letters 2 weeks
later is too long.
Overall, it is not a good recruiting policy, Brittair needs
to make a lot of changes.
(g) Below is the organisation chart for Brittair plc:
i) What is the Managing Director’s span of control?
[1]
4
ii) Explain what is meant by delegation. Use an example from the organisation chart to support
your answer.
[2]
Delegation is when responsibility is given to
someone below you in the organisation chart. For
example: if the Managing Director gave a task to the
Finance Manager.
iii) Brittair plc only introduced a Human Resources Management (HRM) department five years
ago. Analyse one reason why Brittair plc might have decided to introduce an HRM department.
[4]
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The Human Resources department is in charge of
hiring/firing employees, keeping track of employee
records, training employees and dealing with
employee issues. A reason Brittair introduced a
HRM is so that they have a specialised group of
people to deal with all these employee matters
instead of having regular employees deal with these
matters on top of doing their regular jobs. A
negative of having a HRM is that is will cost Brittair
extra money. This means less profit for them or they
may have to cut costs by getting rid of other workers
like cabin crew members.
(h) Discuss two reasons why government laws on discrimination are important when considering the
recruitment and selection process for a manager. [6]
One reason it is important to follow the government
laws on discrimination when hiring someone is if the
company does not follow these laws, they will be
breaking the law. If they break the law, they will have to
go to court and may have to pay fines and will have bad
publicity for the company. This can lead to lower profits
in the future.
Another reasons it is important is so that you don’t lose
out on the best candidate for the job. For example: most
pilots are men, if a female candidate applied to Brittair
for a pilot job and was very qualified and experienced
but did not get the job because Brittair didn’t want to
hire a female pilot, they would not have the best person
for the job.
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(i) The Human Resources Department has decided to use internal recruitment to recruit a new
manager for their flight attendants. Identify and explain two advantages to the business of internal
recruitment. [4]
(j) Brittair plac motivates its employees using a combination of wages and profit sharing. Last year,
Brittair plc earned a profit of £500,000 and 10% of this profit is shared between its employees.
i) Calculate how much money is shared between the employees. Show your working. [2]
ii) Brittair plc wants to increase the motivatino of its employees. On director wants to increase
the amount of the profit paid to its employees. Another director thinks it would be better to
increase wage rates. Recommend which method Brittair plc should use in order to increase the
motivation of its employees. Give reasons for your recommendation. [5]
(k) The majority of workers employed by Brittair plc are members of a national trade union. Explain
whether or not this is a benefit to Brittair plc. In your answer you should refer to the advantages and
disadvantages of trade unions to Brittair plc.
[6]
An advantage of Brittair’s workers being in trade unions
is that the workers will feel like their views are taken in
account because if they are unhappy with something in
the business, the trade union can speak to management
on their behalf. Also, unions will ensure there is no
discrimination against their members which is
especially good for an airline as there might be a variety
of ethnicities on the staff.
A big negative of Brittair’s workers being members of
trade unions is the threat of industrial action (strike) if
management does not do as the union wants. This is
especially bad for an airline because a strike would
mean cancelled flights and very unhappy customers.
Overall it is a good thing that the majority of Brittair’s
employees belong to a trade union because the workers
will feel valued and listened to and hopefully work
harder because of that.
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(l) Gilbert is the Finance Manager of Brittair plc and needs to employ two more staff to work as office
juniors, filing and answering the telephones. The Human Resources department placed an advert and
provided both a job description and a person specification. They received 100 responses.
i)
Explain why Brittair plc should produce each of the following when recruiting the
workers: Job Description and Person Specification. [4]
It’s important to create a Job Description which informs
the candidates about the duties and responsibilities of
the job so that they know exactly what they will be
doing. It’s important to create a Person Specification
which identifies the qualifications, experience and
personal qualities required to do the job so that people
who are not right for the job do not apply.
ii) Brittair plc motivates workers using monetary and non-monetary methods. State and explain
one monetary method and one non-monetary method Brittair plc may use to motivate its new
office juniors.
[4]
A monetary method they could use would be to give the
office junior a bonus if they achieve certain targets.
Since an office junior is probaly just starting out their
career and not getting paid much, they might be very
motivated to work hard to earn a bonus.
A non-monetary method could be to have an Employee
of the Month award. The office junior may be motivated
to work hard to earn this award and show they are a
valuable member of the team.
(m) Brittair plc is considering the takeover of an established airline that also flies its customers around
Europe called Eurowings. Explain whether or not Brittair plc would be likely to benefit from the
takeover of Eurowings. In your answer you should refer to the advantages and disadvantages of
takeovers.
[6]
An advantage of taking over Eurowings is that Brittair
will become bigger because they will now have
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Eurowings' customers and planes therefore they can
earn more money. Another advantage is that Brittair will
be in charge of Eurowings therefore Brittair employees
don't have to worry about losing their jobs or having to
change how they perform their jobs.
A disadvantage of taking over Eurowings is that
Eurowings employees will be nervous they will lose
their jobs. This will mean employee morale and
motivation will fall. The morale and motivation will also
fall because Eurowings might not be happy about
getting taken over.
Overall, it will benefit Brittair to take over Eurowings
because they can potentially earn more money.
However, they should consider the feelings of
Eurowings employees when making decisions about the
future of the new business.
(n) Calculate Daniel’s Net Pay earned in the week ending 15 May 2010. Show your working. [2]
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Revolution Ltd makes and sells computers throughout the UK and Europe. It has offices
in five European Union countries.
(a) It has been suggested to the Board of Directors that Revolution Ltd should change its ownership
from a private limited company to a public limited company. Not all the directors agree.
Explain one reason why Revolution Ltd might want to change the business ownership from a
private limited company to a public limited company. [2]
In a public limited company, anyone in the public can be
a shareholder. This means, Revolution should be able to
gain more shareholders which means more capital can
be raised which the company can use to expand, buy
new machinery, or invest in other ways to help the
business.
(b) Explain one reason why some directors might be against changing the business ownership from
a private limited company to a public limited company. [2]
As a private limited company, shareholders are family
and friends. If they change to a public limited company,
anyone is able to become a shareholder therefore,
Revolution could potentially get taken over by another
company.
(c) Identify two reasons why the UK Government has an interest in Revolution Ltd. [2]
1 - the government receives income tax from the
employees of Revolution ltd
2 - Revolution ltd pays the government Corporation Tax
on any profit they make
3 - The government might be a supplier of Revolution ltd
and might buy computers from them
4 - If Revolution ltd didn't employ some of their workers,
those workers might be out of a job and the government
would have to pay them benefits.
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(d) Revolution Ltd uses the Internet and video conferencing in the day to day running of its business
throughout Europe. Explain the possible benefits and drawbacks to Revolution Ltd of using these
forms of ICT. [6]
A benefit of using Internet and video conferencing is
that Revolution Ltd does not need to spend money or
time travelling to other parts of Europe to visit their
offices around Europe. Also, if there is a problem in one
of the offices, Revolution Ltd employees can discuss
this immediately over internet or video conferencing
instead of taking the time to travel to another country.
A drawback of using Internet and video conferencing is
if there is a power cut or technical failure, the messages
may be lost or interrupted. Also, competitors might hack
into the messages.
Overall, Internet and video conferencing is a great way
for Revolution Ltd to communicate with their offices
throughout Europe because it saves them time and
money.
(e) One of Revolution Ltd’s employees is Terry, aged 27, who has worked at Revolution Ltd for three
years. He is contracted to work 35 hours per week. Terry has been told that his pay would be
reduced from £6.79 per hour to £5.59 per hour, and he has been told he would have to work an
extra seven hours per week. Read through the National Minimum Wage (NMW) and
Employment Rights Act (ERA) and advise Terry whether his rights would be denied if the
proposals went ahead. Give reasons for your advice. [5]
National Minimum Wage (NMW)
National Minimum wage £5.93 per
hour for those workers aged 21 and
over.
National Minimum Wage £4.92 per
hour for those workers aged between
Employment Rights Act (ERA)
States that a business musst give an
employee, within eight weeks of starting
employment, details in writing of:
 The rate of pay;
 Notice to be given to end the
employment
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18 and 20.

The hours of work agreed
between the worker and the
employer.
Terry is 27 years old, therefore his minimum wage
should be £5.93 per hour. In the new proposals, his pay
would go down to £5.59 per hour which goes against the
minimum wage law. Also, the Employment Rights Act
states that within 8 weeks of starting a job, the employer
needs to give written notice of hours of work and rate of
pay. According to these proposals, Revolution Ltd
would be changing the number of hours Terry is
required to work (7 hours more) and his rate of pay. As
Terry has been in the job for 3 years, this is going
against the Employment Rights Act.
(f) Lynne, the Human resources Manager of Revolution Ltd, was asked to look at different methods
of motivating the production workers. She is considering the following methods:
 Introduce a bonus scheme
 Introduce an award scheme with a monthly prize for the best worker
 Introduce job rotation
Recommend which one of the above methods should be introduced to improve worker motivation
at Revolution Ltd. You should refer to each method in your answer. [6]
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A bonus scheme means that workers who reach certain
targets will receive extra cash/money. This is a good
motivation method because many people are motivated
to work harder if there is a chance to earn more money.
However, if the workers are already earning a good
wage, more money might not be a motivating factor to
them.
A monthly reward scheme might motivate workers
because they want to be recognised for their hard work.
However, if employees don't win the award, this may
make them unmotivated.
Job rotation might motivate workers because they won't
get bored of their job therefore they will work harder.
However, if they are not good at the new jobs, they may
become unmotivated.
Overall, I think a bonus scheme is the best way to
motivate the employees because most people will be
willing to work harder for extra money.
(g) Revolution Ltd has decided to merge with one of its competitors, called Micros Ltd.
Identify the type of integration which describes Revolution Ltd merging with Micros Ltd. [1]
Horizontal Integration
(Diversification - merge/take over a chicken + chip
shop)
(Backwards Vertical Integration - merge/take over a
metal mine)
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(Forwards Vertical Integration - merge/take over PC
World)
(h) Explain why Revolution Ltd decided to merge with Micros Ltd rather than takeover the business
[4]
One reason why Revolution Ltd might have decided to
merge is because to take over Micros Ltd they would
have needed a lot of money which they may not have.
Also, when businesses merge together, both
businesses agree with the decision. In a take over, the
business which is taken over might be unhappy or
hostile towards the business which is taking them over.
(i) As a result of the merger, Revolution Ltd will move to a tall internal organisational structure from a
flat internal organisation structure. Explain one possible benefit the change in internal organisation
may have on Revolution Ltd. [2]
When Revolution Ltd had a flat structure, this means
they did not have many layers of management and each
manager had a large span of control. When they
changed to a tall structure, it means there will be more
managers and each manager's span of control will be
smaller therefore they will be better able to monitor their
workers.
4 In 2001 Michaela and Gemma formed a partnership named Styles and Fashion (S&F),
selling clothes which they designed and made. They have a ‘sleeping’/limited partner
called Joe.
(a) Explain why S&F is part of both the secondary and the tertiary sectors. [2]
They are part of the secondary sector because they
design and make clothes.
They are part of the tertiary sector because they provide
the service of selling the clothes.
(b) Explain what is meant by a ‘sleeping’/limited partner. [2]
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A sleeping partner is a partner (owner) of the business
who invests money, but plays no part in the actual
day-to-day running of the business.
(c) When starting S&F, Michaela, Gemma and Joe signed a Deed of Partnership. Identify one item
which might be included in a Deed of Partnership. [1]
Names of the partners, signatures of the partners, date,
amount of money invested by each partner, how the
profit is shared, the name of the business
(d) Explain one advantage to the partners of operating S&F as a partnership. [2]
An advantage of operating S&F as a partnership is that
Michaela, Gemma and Joe can raise more capital
together than if they each operated individually as a
Sole Trader.
Other advantages: Share workload, ideas,
responsibilities, may specialise in different areas of the
business . . .
(e) By 2010, S&F had nine shops around the UK. It now wants to open a tenth shop and is looking for
a suitable location. Explain one factor which may persuade S&F to locate its shop in a particular
area. [2]
The wealth of the area may persuade S&F to locate its
shop in a particular area because the wealthier the local
people, the more clothing they will buy from S&F.
Other factors to consider: size of the shop, shop rent in
the area, number of customers in the area, availability of
labour (they will need people with the skills to make and
design clothes), availability of supplies . . .
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(f) S&F will create benefits for the local community when it opens its new shop. Explain one possible
benefit to the local community of S&F opening a new shop. [2]
By opening a new shop in the local community, S&F will
create more jobs which is good for the economy
because less people will be unemployed and on
benefits.
Other benefits to the local community: don't have to
travel as far to purchase S&F clothing, local community
has more choice of clothing to puchase.
(g) As with all S&F shops, the new shop will require a Shop Manager. The job advertisement below
will be advertised internally:
Shop Manager Required
The successful applicant should have a good knowledge of business, be hard working,
have good interpersonal skills and be able to work under pressure.
The successful applicant will manage the new shop and be in charge of four full-time
and three part-time staff.
Identify two possible personal qualities S&F would look for in an application for the position of
Shop Manager. [2]
Good knowledge of the business, hardworking, good
interpersonal (communication / teamwork skills), work
under pressure
(h) Recommend whether advertising internally is the correct decision when S&F is trying to recruit a
new shop manager. In your answer you should refer to both the advantages and disadvantages
of internal recruitment. [6]
(i) The 10 S&F shop managers are members of the company’s profit sharing scheme. Last year S&F
earned a net profit of £1 000 000 and 10% of this profit was shared equally between the 10
managers.
Calculate how much money each of the 10 shop managers received as their share of the profit.
Show your workings. [2]
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(j) Some of th workers and S&F may receive and overtime payment each month. Explain what is
meant by an overtime payment. [2]
(k) Many trade unions exist in the UK. Half of S&F’s employees are members of different unions.
They are consiering going on strike. Explain two likely impacts of strike action on S&F. [4]
(l) After the dispute between employes and S&F has been settled, the partners would like to
establish a single union agreement with the employees. Explain one benefit of a single union
agreement to a business such as S&F. [2]
5 Green Campaigners Trust (GCT) is a UK charity which aims to protect the environment and
wildlife from business actions, such as pollution of rivers and business expansion, and from
increased housing development.
(a) Explain one way in which a charity such as GCT generates income. [2]
(b) Explalin how the objectives of GCT may be different to those followed by other private sector
businesses. [4]
(c) GCT uses a range of methods to communicate with those who support its aims.
Explain one advantage to GCT of using letters rather than communicating in person with its
supporters. You should refer to both methods of communication in your answer. [3]
(d) Three potential barriers to communication within a business are shown below. State why each
may be a barrier to communication. [3]
i) Attitude of sender
ii) Language used
iii) Time when the communication is sent
(e) GCT needs to recruit a Marketing Director. GCT is deciding whether ot use one or both of the
following recruitment methods:
a. GCT website;
b. Recruitment agency.
Explain each of the above methods of recruitment and recommend which would be the most effective
for GCT. Give reasons for your recommendation. [6]
(f) As with other new employees, the new Marketing Director will undergo and induction course
organised by GCT. Explain one benefit of an induction course to new employees. [2]
(g) The new Marketing Director, Chris, will have to lead a team of 20 other employees. After a month,
some of the marketing team think that Chris has an autocratic leadership style. Discuss the
effectiveness of such a leadership style when managing a team of employees. [6]
6 Kyles plc is a large multinational company which has a chain of hotels within the European
Union.
(a) Explain the meaning of the term multinational company. [2]
OCR Unit A292
Jan2010/June2010/Jan2011/June2011
22
(b) Explain one advantage and one disadvantage to the shareholders of Kyles plc of it being a
multinational company. [4]
(c) It can be said that Kyles plc is part of the tertiary sector in the UK. The figure below shows data on
the percentage of employees in both the secondary sector and the tertiary sector of the UK
economy:
UK Employment by Sector (%)
80
Percentage of
Employment
60
Secondary Sector
Employment
40
20
Tertiary Sector Employment
0
1990
2000
2010
Year
Using this figure, explain what is meant by the term deindustrialisation. [2]
(d) Explain one possible reason for the increase in employment in the tertiary sector. [2]
(e) Working patterns for Kyles plc are changing. It is now employing more seasonal workers to work
with its full time employees.
Draw two lines which correctly match each type of employee with its explaination. [2]
Full time employee
An employee who works more than 36 hours per week for
the same business.
An employee who works during particular times of the year.
Sesonal employee
An employee who works less than 36 hours per week.
(e) Explain why Kyles plc might be employing more seasonal employees [3]
(f) In response to demands from its shareholders to improve profitability, Kyles plc is considering the
following actions:
 Improve staff training
 Employ temporary staff
 Pay employees on a piece rate rather than by the hour.
Recommend which of these actions is most suitable for Kyles plc to increase its profitability. You
should refer to each action in your answer. [6]
OCR Unit A292
Jan2010/June2010/Jan2011/June2011