This document contains instructions and questions for a business studies exam. It is divided into two sections: Section A contains 4 short answer questions requiring responses of 2-5 sentences each. The questions cover topics like measuring business size, market orientation, legal constraints, and reasons for depreciating assets. Section B requires a longer essay response to one of three questions. The questions address issues like the advantages and disadvantages of converting a private company to a public company, factors motivating employees, and considerations for locating an overseas factory and marketing a new car model.

1. CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level
9707/1
OCTOBER/NOVEMBER SESSION 2002
BUSINESS STUDIES
PAPER 1 Short Answer and Essay 1 hour 15 minutes
Additional materials:
Answer paper
TIME 1 hour 15 minutes
INSTRUCTIONS TO CANDIDATES
Write your name, Centre number and candidate number in the spaces provided on the answer paper/
answer booklet.
Section A
Answer all questions.
Section B
Answer one question.
Write your answers on the separate answer paper provided.
If you use more than one sheet of paper, fasten the sheets together.
You are advised to spend no more than 35 minutes on Section A.
INFORMATION FOR CANDIDATES
The number of marks is given in brackets [ ] at the end of each question or part question.
You are reminded of the need for good English and clear presentation in your answers.
This question paper consists of 2 printed pages.
SB (SLC) S15049/3
© CIE 2002 [Turn over

2. 2
Section A (Short Answer)
Answer all questions.
1 (a) State two different methods of measuring the size of a business. [2]
(b) Briefly explain why it might be difficult to compare the size of different businesses. [3]
2 (a) Explain why successful businesses are usually market-orientated. [2]
(b) Why is it important for a marketing manager to understand the concept of the product life
cycle? [3]
3 Outline how, in your country, legal constraints might limit business activity. [5]
4 (a) Why do businesses depreciate fixed assets? [2]
(b) Explain why the payback period might be an important factor in deciding whether to invest in
new fixed assets. [3]
Section B (Essay)
Answer one question only.
5 (a) Analyse the advantages and disadvantages for a private limited company of converting to a
public limited company (plc). [10]
(b) Discuss why public limited companies find it difficult to satisfy the interests of both
shareholders and other stakeholders in the business. [10]
6 With reference to theorists on motivation, discuss to what extent people at work are motivated by
financial reward. [20]
7 (a) Examine factors which a multi-national car manufacturer might consider when deciding where
to locate a new overseas factory. [10]
(b) This business has decided to sell a new small car in your country. Discuss an appropriate
marketing mix for this product. [10]
9707/1/O/N/02