SEC05/1.
20m
MATRICULATION AND SECONDARY EDUCATION CERTIFICATE
EXAMINATIONS BOARD
SECONDARY EDUCATION CERTIFICATE LEVEL
2020 MAIN SESSION
SUBJECT: Business Studies
PAPER NUMBER: I
DATE: 7th September 2020
TIME: 4:00 p.m. to 6:05 p.m.
This paper consists of eight questions of 10 marks each.
Answer ALL questions.
Candidates are to write the question number and letter in the margin of the booklet provided.
1. (a) Name and explain ONE business objective. (3)
(b) Give THREE examples of business activity, ONE example from each of the three
categories. (3)
(c) Briefly explain ONE difference between a market economy and a planned economy. (2)
(d) Give ONE reason why the allocation of resources in economic activity is important. (2)
(Total: 10 marks)
2. (a) Define fair trade. (2)
(b) List FOUR methods that the EU may use to protect its industry from competition from the
USA. (4)
(c) Distinguish between exports and imports. (2)
(d) Explain ONE benefit that businesses in Malta enjoy as a result of Malta being an EU
member state. (2)
(Total: 10 marks)
3. (a) List FOUR characteristics of partnerships. (4)
(b) Mention TWO sources of finance that are available to a Limited Liability Company but not
to a sole-trader. (2)
(c) Distinguish between nationalisation and privatisation. (2)
(d) Give ONE reason why an investor would opt to invest in a Limited Liability Company rather
than opening a sole-trader business. (2)
(Total: 10 marks)
4. (a) Define production chain. (2)
(b) Name TWO production systems and explain in which situation would each system be more
suitable. (4)
(c) Mention TWO factors that a business should consider when choosing the location of its
business. (2)
(d) When a business grows in size, it will be able to benefit from economies of scale. Explain
ONE economy of scale that a business can benefit from. (2)
(Total: 10 marks)
© The MATSEC Examinations Board reserves all rights on the examination questions in all examination papers set by the said Board.
SEC05/1.20m
5. (a) Name TWO ratios that would assist a business in analysing its profitability. (2)
(b) The Statement of Financial Position (Balance Sheet) as at 31 December 2019 of XYZ Ltd
showed the following information:
Inventory €62,500
Total current assets (including inventory) €250,000
Current liabilities €125,000
From the figures above, calculate the company’s:
(i) Working capital ratio (Current ratio); (2)
(ii) Quick assets ratio. (2)
(c) Distinguish between profitability and liquidity. (2)
(d) A business producing sunglasses is considering making use of breakeven analysis. Give
TWO benefits of using breakeven analysis in the production and sales of sunglasses. (2)
(Total: 10 marks)
6. (a) How should one prepare oneself for an interview for a secretarial post? (2)
(b) Explain any TWO stages of the recruitment process. (4)
(c) Distinguish between on-the job and off-the job training. (2)
(d) Mention TWO effects of unemployment. (2)
(Total: 10 marks)
7. (a) Name TWO methods of communication. (2)
(b) Give ONE example for each of the following problems in communication:
(i) emotional, (1)
(ii) social, (1)
(iii) language, (1)
(iv) technical. (1)
(c) Distinguish between formal and informal communication networks. (2)
(d) Explain ONE consequence that can occur as a result of the use of ineffective
communication. (2)
(Total: 10 marks)
8. (a) What is the role of the Malta Stock Exchange? (2)
(b) Describe TWO ways how Jobsplus can help persons achieve their employment goals. (4)
(c) A friend of yours, together with a few other investors, is considering opening a new limited
liability company to operate in the tourism industry.
(i) Where should she go in order to register the company? (1)
(ii) Which authority regulates the industry sector in which the company will be operating?
(1)
(d) Give TWO ways how pressure groups can affect a business in the private sector. (2)
(Total: 10 marks)
Page 2 of 2
SEC05/2A.20m
MATRICULATION AND SECONDARY EDUCATION CERTIFICATE
EXAMINATIONS BOARD
SECONDARY EDUCATION CERTIFICATE LEVEL
2020 MAIN SESSION
SUBJECT: Business Studies
PAPER NUMBER: IIA
DATE: 9th September 2020
TIME: 4:00 p.m. to 6:05 p.m.
This paper consists of six questions.
Answer Question 1 from Section A and ANY THREE questions from Section B.
Candidates are to write the question number and letter in the margin of the booklet provided.
SECTION A
Compulsory question.
1. The Maltese franchise companies operating three of the UK’s leading high-street stores say
that closures in Britain will not impact Malta. The franchisees for Debenhams (United Group of
Companies), Mothercare (Camilleri Group of Companies) and Marks and Spencer (Alf. Mizzi &
Sons Group) said that business would continue operating normally and there were no intentions
to shut Maltese stores despite closures of UK branches.
The three UK retailers have reported plans in recent months to close several of their stores to
save the companies after going into administration or to restructure in response to falling
profits. Mothercare UK’s 79 stores closed their doors for the final time last week while
Debenhams UK will close 22 of its branches by the end of January. Mothercare had gone into
administration last April while Debenhams UK had fallen into the same financial procedures in
November. However, the Mothercare franchise in Malta will continue as international business
will continue unaffected. There is no intention to reduce the number of stores or employees in
Malta. Mothercare International currently operates 1,277 international franchises around the
world, from China to Chile. The international franchises have bought all of the stock from
Mothercare UK and will continue to be sold under the international business.
Debenham’s UK is currently undergoing a restructuring process by rebalancing its current 180
stores. Debenhams has a very strong international franchise business and therefore the
restructuring in the UK has no impact on Malta as store closures in the UK had no bearing on
Debenhams’ franchise business overseas. Marks & Spencer UK is also undergoing a
restructuring phase but this process will not have an impact on international franchises because
they are separate entities.
(Adapted from The Times of Mata: Debenhams, Mothercare, Marks and Spencer’s franchises safe despite UK closures)
(a) Define franchise. (2)
(b) Give ONE example of a franchisor and TWO examples of a franchisee from the excerpt
above. (3)
(c) Distinguish between a franchisor and a franchisee. (2)
(d) Give ONE benefit of having a franchise business. (1)
(e) Marks and Spencer Group plc and Debenhams UK are major British multinational retailers.
What is a multinational company? (2)
(f) Mention THREE effects of having more multinationals operating in Malta. (3)
(g) Is a franchise business always a multinational? Briefly explain your answer. (2)
Question continues on next page.
© The MATSEC Examinations Board reserves all rights on the examination questions in all examination papers set by the said Board.
SEC05/2A.20m
(h) Give ONE reason why multinationals may be beneficial to a country. (1)
(i) Mention TWO changes to show how the internet has changed the retail industry. (2)
(j) Give ONE example of a situation when two business objectives are in conflict in a changing
economic environment. (3)
(k) What is the difference between voluntary and involuntary dismissal of employees? (2)
(l) Suggest ONE reason why people resist change. (1)
(m) What is meant by the term ‘business ethics’? (2)
(n) List TWO ways by which a business would be ethical towards its employees. (4)
(Total: 30 marks)
SECTION B
This section consists of five questions.
Answer ANY THREE questions from this section.
2. (a) (i) Define an ‘organisation chart’. (2)
(ii) Draw TWO organisation charts, one showing a tall organisation and the other showing
a flat organisation. (4)
(b) Explain tall and flat management structures in terms of the chain of command and the
span of control. (4)
(c) Distinguish between centralisation and delegation. Give THREE differences. (6)
(d) Give TWO reasons why worker participation in decision making leads to higher productivity
at the place of work. (4)
(Total: 20 marks)
3. (a) Define the following marketing strategies, giving ONE example of a product that would be
targeted by each:
(i) mass marketing; (3)
(ii) niche marketing. (3)
(b) Promotion is an important aspect of the marketing mix. Define promotion and give TWO
examples of how Maltese wines can be promoted to the foreign market. (4)
(c) Compare the stages of the product life-cycle of introduction, growth, maturity, saturation
and decline in terms of sales, profit and competition. (6)
(d) Businesses have various options as to how to transport their goods from one place/country
to another. Give ONE advantage and ONE disadvantage of air transport of goods. (4)
(Total: 20 marks)
4. (a) List TWO functions of money and briefly describe ONE of the functions mentioned. (4)
(b) Name any TWO users of financial information. For each user, explain why they require
this information. (6)
(c) Distinguish between internal and external sources of finance in the private sector, giving
ONE example of each source. (4)
(d) Evaluate why an extension to the existing building of a factory is a capital expenditure and
not a revenue expenditure. (6)
(Total: 20 marks)
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SEC05/2A.20m
5. (a) What is meant by:
(i) a democratic leadership style? (2)
(ii) an autocratic leadership style? (2)
(b) (i) Give TWO examples of Herzberg ‘s hygiene factors of motivation. (2)
(ii) Give TWO examples of what Maslow calls esteem needs. (2)
(iii) According to McGregor’s Theory X and Theory Y, when is a manager more likely to use
an authoritarian style of management? (2)
(c) What is the difference between the process of arbitration and the process of conciliation in
resolving disputes? (6)
(d) Recently we have seen various industrial actions being proposed by the health, transport
(pilots) and education sectors. What ethical issues should Trade Unions consider before
carrying out industrial action? (4)
(Total: 20 marks)
6. (a) Describe the THREE steps in quality control. (6)
(b) Explain the role of government in encouraging businesses to adopt eco-friendly
technologies such as solar panels. In your answer, give ONE example of how government
fulfils this role. (4)
(c) What is the relationship between government’s influence on location decisions and each of
the following:
(i) the Planning Authority (previously known as MEPA)? (2)
(ii) Malta Enterprise? (2)
(d) Give TWO disadvantages of overstocking and ONE disadvantage of understocking. (6)
(Total: 20 marks)
Page 3 of 3
SEC05/2B.20m
MATRICULATION AND SECONDARY EDUCATION CERTIFICATE
EXAMINATIONS BOARD
SECONDARY EDUCATION CERTIFICATE LEVEL
2020 MAIN SESSION
SUBJECT: Business Studies
PAPER NUMBER: IIB
DATE: 9th September 2020
TIME: 4:00 p.m. to 6:05 p.m.
This paper consists of six questions.
Answer Question 1 from Section A and ANY THREE questions from Section B.
Candidates are to write the question number and letter in the margin of the booklet provided.
SECTION A
Compulsory question.
1. The Maltese franchise companies operating three of the UK’s leading high-street stores say
that closures in Britain will not impact Malta. The franchisees for Debenhams (United Group of
Companies), Mothercare (Camilleri Group of Companies) and Marks and Spencer (Alf. Mizzi &
Sons Group) said that business would continue operating normally and there were no intentions
to shut Maltese stores despite closures of UK branches.
The three UK retailers have reported plans in recent months to close several of their stores to
save the companies after going into administration or to restructure in response to falling
profits. However, the Mothercare franchise in Malta will continue as international business will
continue unaffected. There is no intention to reduce the number of stores or employees in
Malta. Mothercare International currently operates 1,277 international franchises around the
world, from China to Chile.
Debenhams has a very strong international franchise business and therefore the restructuring
in the UK has no impact on Malta. Marks & Spencer UK are also undergoing a restructuring
phase but this process will not have an impact on international franchises because they are
separate entities.
(Adapted from The Times of Mata: Debenhams, Mothercare, Marks and Spencer’s franchises safe despite UK closures)
(a) Define franchise. (4)
(b) Give ONE example of a franchisor and TWO examples of a franchisee from the excerpt
above. (3)
(c) Distinguish between a franchisor and a franchisee. (2)
(d) Give ONE benefit of having a franchise business. (1)
(e) Marks and Spencer Group plc and Debenhams UK are major British multinational retailers.
What is a multinational company? (4)
(f) Mention THREE effects of having more multinationals operating in Malta. (3)
(g) Is a franchise business always a multinational? Briefly explain your answer. (2)
(h) Give ONE reason why multinationals may be beneficial to a country. (1)
(i) Mention TWO changes to show how the internet has changed the retail industry. (4)
(j) Give ONE example of a situation when two business objectives are in conflict in a changing
economic environment. (3)
(k) What is the difference between voluntary and involuntary dismissal of employees? (2)
(l) Suggest ONE reason why people resist change. (1)
(Total: 30 marks)
© The MATSEC Examinations Board reserves all rights on the examination questions in all examination papers set by the said Board.
SEC05/2B.20m
SECTION B
This section consists of five questions.
Answer ANY THREE questions from this section.
2. (a) Choose the correct word/phrase from the following table to complete the sentences below.
Each word/phrase is to be used only once. Write the answers on the booklet provided. (8)
authority decisions diagram responsibility
command delegate internal subordinates
An organisation chart is a (a) that shows the (b) structure of a
business. The idea is to give an understanding of how a business is organised into different
departments. It also shows the different levels of (c) within an organisation. A
line manager is an employee's immediate boss who gives instructions and advice and
answers questions. The chain of (d) shows the way in which orders, decisions
and communication are passed up and down the organisation, from one level to the next.
This leads us to the general idea that the higher the position of an employee in a business,
the more (e) the employee will have. Authority is the right that an employee
has to take (f) . However, we have seen cases where managers ___(g) their
authority to their (h) .
(b) Explain tall and flat management structures in terms of the chain of command and the
span of control. (4)
(c) Distinguish between centralisation and delegation. Give TWO differences. (4)
(d) Give TWO reasons why worker participation in decision making leads to higher productivity
at the place of work. (4)
(Total: 20 marks)
3. (a) Choose the correct word/phrase from the following table to complete the sentences below.
Each word/phrase is to be used only once. Write the answers on the booklet provided. (8)
advertising market price promotion
consumers persuade primary secondary
Marketing, deals with the study of the (a) , which is basically made up of two
players; businesses and (b) . The original marketing mix is made up of four
elements, product, (c) , place and (d) . The idea of promotion is for
businesses to inform consumers of their products, and thus, to (e) consumers to
buy the products. (f) is a specific example of brand promotion. Market research
can take two forms; either (g) or (h) research.
(b) Promotion is an important aspect of the marketing mix. Define promotion and give TWO
examples of how Maltese wines can be promoted to the foreign market. (4)
(c) Compare the stages of the product life-cycle of introduction, growth, maturity, saturation
and decline in terms of sales and profit. (4)
(d) Businesses have various options as to how to transport their goods from one place/country
to another. Give ONE advantage and ONE disadvantage of air transport of goods. (4)
(Total: 20 marks)
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SEC05/2B.20m
4. (a) Choose the correct word/phrase from the following table to complete the sentences below.
Each word/phrase is to be used only once. Write the answers on the booklet provided. (8)
accounts commercial indivisibility services
bartering exchange loans wants
Before the use of money, consumers and businesses used to resort to (a) , that
is, the trading of goods and services with other goods and services. Many problems were
faced with this system, including the double coincidence of (b) , since all parties
involved had to accept what was being traded, and the (c) of products. Money
facilitated the (d) process, and this brought about the need for having sound
banking systems. Every country has a number of (e) banks and also a central
bank. Banks offer different (f) to both consumers and businesses, such as,
safe keeping of money in different types of (g) ,
(h) and other investment opportunities.
(b) Name any ONE user of financial information and explain why this user would require this
information. (4)
(c) What is the difference between internal and external sources of finance in the private
sector, giving ONE example of each source? (4)
(d) Evaluate why an extension to the existing building of a factory is a capital expenditure and
not a revenue expenditure. (4)
(Total: 20 marks)
5. (a) Choose the correct word/phrase from the following table to complete the sentences below.
Each word/phrase is to be used only once. Write the answers on the booklet provided. (8)
behaviour Herzberg psychological selection
dissatisfaction motivated resources theories
The human (a) department is entrusted with the recruitment, (b) and
appointment of new staff. It is important that employees are (c) to work. There
are a number of ways for people to be motivated and we also have three main (d)____
that help us understand what motivates workers. Maslow focuses on the (e) needs
of employees. (f) states that there are certain factors that cause job satisfaction
and other factors that cause job (g) . Mc Gregor developed two theories of
human (h) at work.
(b) (i) Give TWO examples of Herzberg ‘s hygiene factors of motivation. (2)
(ii) Give TWO examples of what Maslow calls esteem needs. (2)
(c) What is the difference between the process of arbitration and the process of conciliation in
resolving disputes? (4)
(d) Recently we have seen various industrial actions being proposed by the health, transport
(pilots) and education sectors. What ethical issues should Trade Unions consider before
carrying out industrial action? (4)
(Total: 20 marks)
Please turn the page.
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SEC05/2B.20m
6. (a) Choose the correct word/phrase from the following table to complete the sentences below.
Each word/phrase is to be used only once. Write the answers on the booklet provided. (8)
delivery prices quality reliable
overstocking purchasing raw materials re-order
The (a) department is one of the main functions of a business organisation.
This department buys (b) and other assets that the organisation needs.
Choosing the right suppliers is an important role of this department, and this choice is not
only based on the (c) charged by suppliers, but also on the (d) of the
products, the speed of (e) , together with how (f) suppliers are.
Stock of different items may be held by a business for later use. The challenge faced by
businesses is to hold the right amount of stock. Efficient stock control should avoid both
understocking and (g) . The (h) level is the point at which the
purchasing department processes new orders.
(b) Explain the role of government in encouraging businesses to adopt eco-friendly
technologies such as solar panels. In your answer, give ONE example of how government
fulfils this role. (4)
(c) What is the relationship between government’s influence on location decisions and each of
the following:
(i) the Planning Authority (previously known as MEPA)? (2)
(ii) Malta Enterprise? (2)
(d) Give ONE disadvantage of overstocking and ONE disadvantage of understocking. (4)
(Total: 20 marks)
Page 4 of 4
