Please check the examination details below before entering your candidate information

Candidate surname Other names

Centre Number Candidate Number

Pearson Edexcel International GCSE

Model 1
Afternoon (Time: 1 hour 30
minutes)
Paper
referen
ce
4BS1/02
Business
 

PAPER 2: Investigating large businesses

You do not need any other materials. Total Marks

Instructions

• Use black ink or ball-point pen.

• Fill in the boxes at the top of this page with
centre number and candidate number.

•
• Answer
your all
name,
Answer the questions in the spaces
provided – there may be more space
questions.
than you need.

Information

• The total mark for this paper is 80.

• The marks for each question are shown in
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
brackets
Advice
• Read each question carefully before you start to answer it.
• Try to answer every
• Check your answers if you have time at the end.
question.

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P75844A
©2024 Pearson
Education Ltd.
F:1/1/1/1/1/1/
 FORMULAE FOR INTERNATIONAL GCSE BUSINESS

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Gross profit margin:

Gross profit = revenue – cost of sales

gross profit
Gross profit margin = 100
revenue

Operating profit margin:

Operating profit = gross profit – other operating expenses

operating profit
Operating profit margin = 100
revenue

Markup:

Markup = profit per item100

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cost per item

Return on capital employed (ROCE):

ROCE = operating profit 100

capital employed

Current
ratio:
current
Current ratio assets current
=
liabilities

Acid test
ratio:
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current assets
Acid test ratio inventory current
= liabilities


 Answer ALL questions. Write your answers in the spaces provided.
Some questions must be answered with a cross in a box . If you
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change your mind about an answer, put a line through the box and
then mark your new answer with a cross .
1 Jimmy Choo was born in Malaysia. He moved to London and became the founder of
Jimmy Choo. The business was first known for the shoes it made for women.

Over the years the business has become a multinational business. It has
expanded into countries including America, Japan and France. As part of its
growth, it now sells clothing, perfume, trainers and wedding outfits. Many
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celebrities in the fashion and music world are well known for purchasing
Jimmy Choo products.

Jimmy Choo’s brand is identified by its logo, ‘JC’, which is printed on all items
produced. The business has won many awards over the years, including
‘Designer of the Year’ and ‘Ace Brand of the Year’.

(a) (i) Which one of the following describes

Kaizen? Select one answer.

(1)
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A Continuous improvement
B Just-in-time (JIT)
C Market orientation
D Job production

(ii) Which one of the following function areas would pay its
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employees’ wages? Select one answer.

(1)

A Finance
B Human resources
C Marketing
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D Production
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 The price of buying a pair of Jimmy Choo shoes in
Malaysia is 3 359.13 Malaysian Ringgits (MYR).

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The exchange rate is 5.65 MYR = £1.00 (pounds).
(iii) Which one of the following is the price of the shoes
in pounds? Select one answer.
(1)

A £565.00
B £594.54
C £3 353.48
D £18 979.08

(iv) Which one of the following is a benefit of being a sole

trader? Select one answer.

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(1)
A Additional capital can be easily raised
B Decisions can be shared
C Independence for the owner
D Limited liability

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 Figure 1 shows the cash flow information for a business.

£
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Open balance 38 000

Cash inflow 27 000

Cash outflow 17 000

Figure 1
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(v) Which one of the following is the closing balance for the
business? Select one answer.

(1)
A £44 000
B £48 000
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C £55 000
D £65 000

(vi) Which one of the following is an advantage of primary market

research? Select one answer.
(1)
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A It is cheaper than other types of market research

B It is less time consuming than secondary research
C It is only done by market research agencies
D It is a more up to date method of research
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 (b) Define the term e-
newsletter. (1)

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(c) Define the term minimum wage.

(1)

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(d) State one reason why Jimmy Choo would want loyal customers.
(1)

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 Many countries are concerned about the environment and the amount
of plastic waste created. In 2018 the value of recycled plastic was $41.73
billion (US dollars). Experts are predicting that this value will increase by
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6.6% by 2027.

(e) Calculate, to two decimal places, the predicted value of recycled plastic
for 2027. You are advised to show your working. (2)
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$
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billion (3)
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(f) Explain one reason why businesses comply with equal opportunities
legislation.

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 (g) Analyse two problems for Jimmy Choo if customer needs are not
satisfied. (6)

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(Total for Question 1 = 20 marks)

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 2 Jimmy Choo ensures that it meets all legal requirements of each country
where it has factories or shops.
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(a) State one non-financial objective Jimmy Choo might have.

(1)

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(b) State one reason why Jimmy Choo complies with health and safety laws.
(1)

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(c) Explain one advantage to a country of being a member of a trading bloc.

(3)

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 (d) Explain one way businesses support employees with
disabilities. (3)

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(e) Explain one impact on a business of an increase in interest rates.
(3)

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10

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 There are times during the year when Jimmy Choo needs additional employees
to manufacture its products. It is considering the following two options:
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Option 1: casual employees

Option 2: part-time employees.
(f) Justify which one of these two options Jimmy Choo should choose.
(9)

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(Total for Question 2 = 20 marks)

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12

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 3 One aim of Jimmy Choo’s is to ensure that all its employees are well
motivated and fully trained to carry out the jobs they are employed to
do. This is to reduce the number of employees leaving the business.
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(a) Define the term person specification.

(1)

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(b) Outline one reason why branding is important to Jimmy Choo.

(2)

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A Jimmy Choo handbag costs $1 590 (US dollars) to manufacture.

It sells for $2 450.
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(c) Calculate, to two decimal places, the percentage increase on this Jimmy Choo
handbag when it is sold. You are advised to show your working.
(2)
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 (d) Analyse why Jimmy Choo asks all candidates applying for a vacancy to
complete an application form.
(6)

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 Jimmy Choo employs people in many countries to produce its shoes,
handbags and perfume. To ensure that its new employees have the best start
possible the following two training options are being considered:
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Option 1: induction training

Option 2: off-the-job training.
(e) Justify which one of these two options Jimmy Choo should choose.
(9)

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(Total for Question 3 = 20 marks)

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16

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 4 Jimmy Choo has many shops around the world.
Figure 2 shows the number of Jimmy Choo shops in some locations.
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Canada
5 UK
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Irelan
Australi d2
a1

Figure 2

(a) Calculate, to two decimal places, the percentage of Jimmy Choo shops in
the UK. You are advised to show your working.
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(2)
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 (b) Analyse the benefit to Jimmy Choo of using share capital to fund its
growth. (6)

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18

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 Jimmy Choo is supplied by a number of different businesses. There are some
factories that Jimmy Choo has a large financial interest in. The majority of the
manufacturing businesses are located in Italy with a few in Spain and
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China.

Jimmy Choo is considering investing in another clothing and shoe factory

and will require skilled employees.

(c) Evaluate the factors Jimmy Choo would have to consider when
making decisions on the location of a new factory. You should use the
information provided as well as your own knowledge of business.
(12)
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 19
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20

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(Total for Question 4 = 20 marks)

TOTAL FOR PAPER = 80 MARKS

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Source:

https://comparecamp.com/recycling-statistics/#TOC2