The Big Aarons Questions! Get Ready For Unit 3

Here is a 10 mark question from 2014: (The case study was about Bowton Spices, BSB)

There will be two ten mark questions in your Paper 3, you need to allocate 10 minutes for them under the minute per mark rule of course.

Here is the mark scheme for this question.

And another one:

Aaron’s, of course, has a similar issue to this as they may build a new factory.

In your exam paper there will be two 10 mark questions, one 8 mark question, two 6 mark questions and some 5s and 4s.

Here are some examples of the type of questions you must prepare for:

  • What are the advantages to Aaron’s of using BATCH production?
  • What are the advantages and disadvantages of Aarons employing specialised employees?
  • What are the advantages of Aaron’s producing their furniture in Sweden? (ie. Outsourcing to another firm, in this case “offshore in Sweden)
  • What would be the advantages to Aarons of producing in Bowton?
  • What are the advantages to Aaron’s of a tariff (a tax on imports) being imposed on imported furniture?
  • Why does the government believe that competition benefits consumers?
  • Recommend whether Aarons should rent a factory in Bowton or buy a new purpose built factory using a mortgage. Give advantages and disadvantages of each option.
  • What are the advantages and disadvantages to the people of Bowton of Aarons building the new factory?
  • Assess the advantages and disadvantages to Aarons of using FSC sourced wood. What does FSC mean?
  • Why might customers be happy to pay a higher price (added value) for FSC wood furniture?
  • What might be the impact of rising interest rates on Aarons? (Might they have loans? Might their customers have loans?
  • Why is the Council considering giving businesses grants if businesses locate in the area?
  • What would be the benefits to Bowton if Aarons builds a new factory in Bowton?
  • What is meant by cash flow? Why is it important?
  • How many bedside tables does Aaron’s need to sell to break even (Use the contribution method!)
  • How could an overdraft be important to Aarons?

The questions that could be REALLY important (10 markers) I have put in bold, and big writing for the really big one! But we can’t predict the questions; so you must prepare thoroughly for both exams.

I will but some sample answers to some of these questions on the Business Faculty blog together with other revision materials.