SECTION A

• 1 (a) Distinguish between the ‘private sector’ and the ‘public sector’. [2]
• (b) Briefly explain two advantages of public sector businesses. [3]
• 2 (a) Define ‘productivity’. [2]
• (b) Briefly explain two ways of improving manufacturing productivity in a business. [3]
• 3 Explain why accurate cost data is important to a business. [5]
• 4 (a) Define ‘product differentiation’. [2]
• (b) Briefly explain two marketing benefits of product differentiation. [3]

SECTION B

• 5 (a) Analyse the importance of employee motivation for the achievement of business objectives. [8]
• (b) Discuss the view that managers and leaders perform very different functions in business organisations. [12]
• 6 Discuss how and why a multinational food manufacturer might have corporate social responsibility (CSR) as a business objective. [20]
• 7 (a) Analyse why it is important for businesses to effectively manage their levels of cash. [8]
• (b) Discuss how liquidity ratios could be useful for external stakeholders of a business. [12]