9609/22/M/J/23 · question 1 of 4 in this topic

Question 1

1(a)(i)1 mark

Office Furniture Designs (OFD)

Markus is an entrepreneur and is planning to set up a private limited company called OFD in four weeks' time. OFD will be an online retailer selling office furniture directly to business customers. Products will be sent directly to customers from OFD's warehouse. OFD's product range will include office chairs, desks and filing cabinets. Markus will have limited start-up funds. OFD will operate in a competitive market and Markus is keen to offer high-quality customer service.

Identify one quality an entrepreneur needs for success.

Identify Name it and, where the marks allow, say what led you there.

Your answer

Suggested time: 2 min

1(a)(ii)3 marks

Office Furniture Designs (OFD)

Markus is an entrepreneur planning to set up a private limited company called OFD, an online retailer of office furniture. Markus will have limited start-up funds and will have to think carefully about opportunity cost.

Explain the term opportunity cost.

Explain Give reasons, not just what happens. Each distinct reason is usually worth a mark.

Your answer

Suggested time: 5 min

1(b)(i)3 marks

Office Furniture Designs (OFD)

As part of his business planning, Markus has prepared a cash flow forecast.

Refer to Table 1.1. Calculate the forecast closing balance for August 2023.

Calculate Show your working. The method can earn marks even when the final value is wrong, and a bare answer often cannot.

Your answer

Suggested time: 5 min

1(b)(ii)3 marks

Office Furniture Designs (OFD)

Markus is setting up OFD, a new private limited company, with limited start-up funds. He plans to offer all customers one month trade credit. However, as OFD is a new business, suppliers may insist on payment on delivery. Markus is currently researching sources of finance to improve OFD's cash flow.

Explain one factor that will influence Markus' choice of a source of finance.

Explain Give reasons, not just what happens. Each distinct reason is usually worth a mark.

Your answer

Suggested time: 5 min

1(c)8 marks

Office Furniture Designs (OFD)

OFD, a new online office furniture retailer, will need five employees who will work in the warehouse and three customer service assistants. Markus plans to offer two weeks of induction training to all employees. OFD operates in a competitive market and Markus is keen to offer high-quality customer service.

Analyse two benefits to OFD of offering induction training to all employees.

Your answer

Suggested time: 12 min

1(d)12 marks

Office Furniture Designs (OFD)

Markus is an entrepreneur planning to set up a private limited company called OFD in four weeks' time, an online retailer selling office furniture directly to business customers. He has limited start-up funds, will operate in a competitive market, and has prepared a cash flow forecast showing negative closing balances.

Evaluate whether Markus needs accurate cost information before setting up OFD.

Your answer

Suggested time: 18 min

9609/22/M/J/23Cambridge International AS & A Level Business 9609 · May/June 2023 · Paper 2 variant 2 · sit the whole paper