SECTION A

1. (a) Define the term ‘supply’. [2]

Supply refers to the quantity of a product that firms are prepared to supply at a given price in a time period.

(b) Briefly explain two non-price factors which could increase the demand for a product or service. [3]

Changes in fashion and taste could increase the demand for a product or service as people are willing to buy more up

2. (a) Define the term ‘business leadership’. [2]

Leadership refers to the art of motivating a group of people towards achieveing a common objective.

(b) Briefly explain two styles of business leadership. [3]

One form of leadership style is the lassez-faire leadership where much of the business decision making is left to the workforce and very little input from the management into the work to be undertaken by subordinates.

Another form of leadership is the democratic leadership where active participation of workers in encouraged in decision making and two-way communiaction is used which allows feedback from staff.

3. Explain how the interests of two stakeholder groups could affect the decisions of a business. [5]

Stakeholders are people or groups of people who can be affected by and therefore have an interest in any action by an organisation. The main stakeholders of a business are customers, suppliers, employees, local communities, government/government agencies and lenders.

4. (a) Define the term ‘job production’. [2]

Job production is producing a one-off itern specially designed for the customer. These products may be small or large and are often unique thus, each individual product has to be completed before the next product is started.