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General Certificate of Education Advanced Level

BUSINESS STUDIES                                                                                                             9198/2

JUNE 2009 SESSION        3 hours

TIME 3 hours


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


  • The number of marks is given  in brackets
[] at the end of each question or part question.
  • 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.
  • Section A: Data Response [25 marks]

    Answer all questions.

    1 Read the passage below and answer all the questions that follow.

    Computex Ltd

    Computex Ltd is a multi-product firm established in 1992 and is located in Zvishavane, a mining town. During its inception, Computex specialised in the production of computer software. However, the firm has since diversified into the production of furniture and footwear. This diversification was used as a strategy to achieve growth.

    In spite of dire socio-economic problems faced by the country, Computex Ltd’s annual profits have risen from $40 billion in 1999 to $100 billion in 2000. Its assets have surpassed $200 billion, making Computex Ltd the fastest growing non-mining firm in Zvishavane.

    The capstone of Computex Ltd’s recent achievements occurred in 2000 when it got listed on the Zimbabwe Stock Exchange. Computex Ltd’s directors viewed listing as an opportunity to enhance the firm’s capital raising competitiveness, share restating and growth.

    Computex Ltd has attributed the recent achievements and success to its social responsibility activities. These activities include providing service excellence, monitoring environmental impact of its operations, ensuring the health and safety of employees and monitoring the safety of company products.

    a) Explain the following terms as used in the passage:

              i)  annual profits               [2]

            ii) assets     [2]

    b) Examine the likely implications of growth to the shareholders of Computex Ltd.  [5]

    c) Identify any three stake holders of Computex Ltd and explain how each might benefits from the firm’s social responsibility activities.   [6]

    d) Evaluate the role of the Stock Exchange to Computex Ltd.    [10]

    Section B: Essays [75 Marks]

    Answer any three questions from this section.

    2   a) Explain external influences on the activities of shoe manufacturing business in your country.  [10]

          b) Using appropriate examples, discuss the ways in which a firm might react to changes in its external                                 environment. [15]

    3   a) Should firms train their employees?  [10]

         b) Discuss he importance of financial reward systems in the motivation of part-time staff.  [15]

    4   To what extent can product portfolio planning guarantee a firm’s success? [25]

    5   a) Explain the factors that are likely to determine the price of a product.  [10]

         b) To what extent is price the most important factor in the successful marketing of a firm’s products? [15]

    6 “Break even analysis is of limited value to business.” To what extent is this statement true? [25]

    7   Evaluate the possible strategies that financial managers might implement to solve cash flow problems. [25]

    8   a) Explain how management might implement critical path analysis to manage a project. [10]

         b) Evaluate the appropriateness of using critical path analysis to manage projects. [15]

    9   a) Why do firms need to set objectives?  [8]

          b) Discuss the potential conflict between the objectives of different stakeholders of a firm. [17]

    10  a) Explain why a firm might carry out a work study program.  [12]

          b) Evaluate the necessity for a job evaluation exercise in a rapidly expanding firm.  [13]

    To access more exams go to the Business Studies Exam page.