1.

In many developed economies, the role of public corporations, nationalised industries and the
state sector has come under close scrutiny with privatisation and deregulation key elements of
government economic policy. The focus is on reducing controls that hinder the operations of
free markets. However, the 1990s saw an increase in partnerships between private, profit
making organizations and governments in the provision of services. Governments are also
working more closely with non-profit making private sector organizations, including charities
and voluntary organizations to manage development and aid programmes.
Compare the key objectives of the private sector with that of the public (state) sector and
explain why many governments see partnership with the private sector as beneficial.
(Total 10 marks)

2.

Analyse whether small and medium-sized firms, such as Open Views, have commercial and
competitive advantages over multinationals like McGregors and Blue Sea.
(Total 8 marks)

3.

State two objectives of a charity.

(Total 2 marks)

4.

(a)

Explain what is meant by a franchise.

(2)

(b)

Assess the advantages and disadvantages of the decision to take up a franchise rather
than to operate as a sole trader.
(6)
(Total 8 marks)

5.

Discuss the potential personnel and marketing difficulties multinational companies may
experience when establishing operations in Less Economically Developed Countries. Your
answer should be from the perspective of the multinational.
(Total 6 marks)

6.

Assess the reasons why Riveau Yachts decided to convert the partnership into a private limited
company (lines 13 to 14).
(Total 6 marks)

7.

Explain the term a public limited company.

(Total 2 marks)

8.

Evaluate whether Riveau Yachts should become a public limited company (line 149).
(Total 8 marks)

9.

Examine how the objectives of a Chinese telecommunication company might change if it

moved from the public to the private sector of the economy.
(Total 4 marks)

10.

Describe two advantages of forming a partnership.

(Total 2 marks)

11.

Explain three advantages and three disadvantages of operating Gadgets2u.com as a private

limited company.
(Total 8 marks)

12.

Explain the reasons for Double Deckers Private Limited forming a private limited company
rather than a partnership.
(Total 6 marks)

13.

Double Deckers Private Limited now operates in the private sector of the economy. Analyse the
major differences between organizations in the public and private sectors of the economy.
(Total 5 marks)

14.

Examine the reasons why so many vehicle manufacturers are now acting in joint ventures or
looking to acquire or merge with other manufacturers.
(Total 6 marks)

15.

Using a PEST (Political, Economic, Sociological and Technological) framework examine

factors which would influence an MNC when deciding to locate a manufacturing facility in an
overseas location.
(Total 6 marks)

16.

Explain what a franchising arrangement is and why the Bank Manager suggested Wayne
purchase a franchised printing business rather than start his own new business.
(Total 6 marks)

17.

Why does Joseph Obeng believe the best growth strategy for Open Views is organic growth,
rather than going public or merging with other companies?
(Total 3 marks)

18.

Missan Motorcare in Mozambique is sold as a franchise operation.

(i)

Explain what is meant by a franchise.

(2)

(ii)

Discuss three advantages and three disadvantages for the distributor of this arrangement.
(6)
(Total 8 marks)

19.

Describe, with relevant examples, three internal economies of scale and consider how these will
apply to Open Views as it grows in size.
(Total 8 marks)

20.

Examine the decision taken by Joseph Obeng to form a joint venture with Manjit Daswami,
rather than to create a separate company.
(Total 5 marks)

21.

Discuss the potential advantages and disadvantages for CMA of establishing joint ventures.
(Total 4 marks)

22.

(i)

What is a multinational company (MNC)?

(1)

(ii)

Suggest two reasons why LOreal chose to enter the Chinese market.
(2)
(Total 3 marks)

23.

(a)

Explain what is meant by a strategic alliance.

(2)

(b)

Analyse why the airlines decided to join together to form a strategic alliance.
(5)
(Total 7 marks)

24.

Define a joint venture, and discuss the advantages and disadvantages of using joint ventures
to expand Rainbow Club Ltd.
(Total 4 marks)

25.

Evaluate the extent to which globalization is encouraged by the development of new ICT
(information and communication technology).
(Total 7 marks)

26.

Using a model, such as Ansoffs matrix, evaluate the strategic options available to companies
seeking future growth in saturated markets.
(Total 8 marks)

27.

Explain the difference between a merger and a strategic alliance.

(Total 4 marks)

28.

(i)

Define economies of scale.

(2)

(ii)

Examine two types of economies of scale that KLM may benefit from after forming an
alliance.
(4)
(Total 6 marks)

29.

Examine the commercial advantages of firms acting in an ethical and socially responsible
manner.
(Total 6 marks)

30.

Using appropriate examples distinguish between objectives, strategies and tactics and describe
how these interrelate.
(Total 6 marks)

31.

What is the purpose of a companys mission statement?

(Total 3 marks)

32.

Analyse the advantages and disadvantages to Shell of setting and implementing socially
responsible and ethical objectives.
(Total 8 marks)

33.

Explain what key information Joel Adeoye would have to include in a business plan when
applying for a loan.
(Total 4 marks)

34.

Moving jobs overseas (offshoring)

Downsizing organizations was the 1990s answer to recession. Moving jobs to overseas locations
where labour is cheaper, is the newest trend in cost cutting, encouraged by improving
technology and accelerating globalization. The worlds top 100 financial institutions will save
$138 billion over the next five years by moving operations overseas. In America, three million
jobs have been lost since 2001. European and American executives fear that the process will
result in a job market that consists of the very rich and the very poor, with little in between.

Middle managers in the West are now competing for jobs in a global market with skilled and
educated workers from China and India, who earn a fraction of their salary. Data processing and
administrative functions are now being outsourced to India. It is believed that jobs in the
pharmaceutical (medicinal drugs) industry and in research and development will soon follow.
India took the economic decision some years ago to invest in education and now has 1.5 million
English-speaking graduates.

There is no limit to what can be outsourced to India says the Confederation of Indian Industry.
Already American politicians are campaigning against offshoring as they believe this will have
a significant social and community impact in the USA. Two million jobs are expected to move
from the West to India by 2008. Political pressure groups, trade unions and other employee
associations are discussing ways to oppose those firms planning to move their operations
overseas.

Assess the effects of moving jobs overseas on four stakeholder groups.

(Total 6 marks)

35.

Explain two costs and two benefits for Chinese citizens of a MNC operating in their country.
(Total 4 marks)

36.

Assess how, and to what extent pressure groups like Greenpeace, can impact on the decision
making of large corporations.
(Total 7 marks)