Paper-1 (Topical Workbook with Mark Scheme) (2012-2017) Article No. 127
Features: o o o o
Questions order new to old Classified to subtopics Mark schemes included All Variants
Editor:
Malik Zubair Hussain (Lahore Lyceum)
Review Board: o Shameel Khalid (LGS, Prargon, Beaconhouse, The City School, Learning Alliance) o M. Kashif Aziz (BDC, SISA, The City School) o Tayab Elahi (KIMS, Garrison) o Waqas Hassan (LGS, Beaconhouse, The Lahore Alma)
o Khalid Malik (LGS, Beaconhouse, Roots Millenium) o Asif Iqbal (BTS) o Ahsan Naqvi (BSS, NGS, SISA) o Shahzad Khalid (UCL, Musab, Pak Turk)
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the Publisher.
Title
Business Studies O-Level Paper-1 Workbook (Article# 127)
Published by
Read & Write Publications
Printed by
Read & Write Publications
Composed Department
Sharjeel Khan, Salman Buksh, Hayat, Shahab, Waqas, M. Awais, Zulfiqar Ali
Graphics Department
Rashid Mehmood, Raja Naveed Mumtaz, Khalid Khurshid
Legal Advisor
Mian Tariq Ahmad (Advocate Supreme Court) Room No. 10, 11, 12 Al-Majeed Centre 1-Mozang Road, Lahore. Tel: 042-37236145, Fax: 042-37241367
Edition:
2018 Edition
Price
Rs. 800/-
DISTRIBUTORS LAHORE
READ & WRITE SALE POINT Shop No. 25 -28 Lower Ground Floor, Haadia Haleema Centre, Ghazni Street, Urdu Bazar, Lahore. Ph: 042 -35714038
RAWALPINDI / ISLAMABAD BOOK VALLEY Shop No. A P 4,China market 5 Brothers Plaza College Road Rawalpindi. Tel: 051 35770894, 051 35551630 Shop No. 3 4-5-6-7, Sheh re Kitab, F -7 Markaz Islamabad. Tel: 051-2650895, 0300 -5292272 ASIAN BOOK STORE Shop No. 9 Lower Ground, Asian Business Centre, Bahria Town, Phase-7 Entrance, G.T Road, Rawalpindi. Ph: +92-51-4917085
KARACHI BURHANI BOOK CENTRE Shop # 6 Hashmi Trust Building Rotson Road New Urdu Bazar Karachi Tel 021 32212640 MARYAM ACADEMY Tayyab Ali Building, Urdu Bazar, Karachi. Tel: 021 32214243 , 021 32634243
CONTENTS UNIT 1
UNDERSTANDING BUSINESS ACTIVITY --------------------------------------------------------------
3
1.1
Business Activity ---------------------------------------------------------------------------------------------
3
Answer Section -------------------------------------------------------------------------------------------------
7
Classification of Business ---------------------------------------------------------------------------------
9
Answer Section --------------------------------------------------------------------------------------- ----------
13
Enterprise, Business Growth and Size ----------------------------------------------------------------
15
Answer Section --------------------------------------------------------------------------------------- ----------
24
Types of Business Organisation -------------------------------------------------------------------------
29
Answer Section --------------------------------------------------------------------------------------- ----------
43
Business Objectives and Stakeholder Objectives -------------------------------------------------
51
Answer Section --------------------------------------------------------------------------------------- ----------
63
UNIT 2
PEOPLE IN BUSINESS --------------------------------------------------------------------------------------
69
2.1
Motivating Employees ---------------------------------------------------------------------------------------
69
Answer Section --------------------------------------------------------------------------------------- ----------
80
Organisation and Management ---------------------------------------------------------------------------
87
Answer Section --------------------------------------------------------------------------------------- ----------
101
Recruitment, Selection and Training of Employees -----------------------------------------------
108
Answer Section --------------------------------------------------------------------------------------- ----------
124
Internal and External Communication -----------------------------------------------------------------
133
Answer Section --------------------------------------------------------------------------------------- ----------
141
UNIT 3
MARKETING ----------------------------------------------------------------------------------------------------
145
3.1
Marketing, Competition and the Customer -----------------------------------------------------------
145
Answer Section -------------------------------------------------------------------------------------------------
158
Market Research ----------------------------------------------------------------------------------------------
165
Answer Section --------------------------------------------------------------------------------------- ----------
170
Marketing Mix ------------------------------------------------------------------------------------------------- -
173
Answer Section --------------------------------------------------------------------------------------- ----------
206
Marketing Strategy -------------------------------------------------------------------------------------------
223
Answer Section --------------------------------------------------------------------------------------- ----------
236
UNIT 4
OPERATIONS MANAGEMENT ---------------------------------------------------------------------------
243
4.1
Production of Goods and Services ---------------------------------------------------------------------
243
Answer Section --------------------------------------------------------------------------------------- ----------
264
1.2
1.3
1.4
1.5
2.2
2.3
2.4
3.2
3.3
3.4
4.2
Costs, Scale of Production and Break-Even Analysis -------------------------------------------
277
Answer Section --------------------------------------------------------------------------------------- ----------
294
Achieving Quality Production ----------------------------------------------------------------------------
302
Answer Section --------------------------------------------------------------------------------------- ----------
308
Location Decisions ------------------------------------------------------------------------------------------
311
Answer Section --------------------------------------------------------------------------------------- ----------
317
UNIT 5
FINANCIAL INFORMATION AND DECISIONS ------------------------------------------------------
321
5.1
Business Finance Needs and Source -----------------------------------------------------------------
321
Answer Section --------------------------------------------------------------------------------------- ----------
329
Cash-flow Forecasting and Working Capital --------------------------------------------------------
334
Answer Section --------------------------------------------------------------------------------------- ----------
344
Income Statements ------------------------------------------------------------------------------------------
349
Answer Section --------------------------------------------------------------------------------------- ----------
354
Statement of Financial Position -------------------------------------------------------------------------
357
Answer Section --------------------------------------------------------------------------------------- ----------
362
Analysis of Accounts -------------------------------------------------------------------------------------- -
364
Answer Section --------------------------------------------------------------------------------------- ----------
375
UNIT 6
EXTERNAL INFLUENCES ON BUSINESS ACTIVITY ---------------------------------------------
381
6.1
Economic Issues ----------------------------------------------------------------------------------------------
381
Answer Section --------------------------------------------------------------------------------------- ----------
392
Environmental and Ethical Issues ----------------------------------------------------------------------
398
Answer Section --------------------------------------------------------------------------------------- ----------
411
Business and the International Economy ------------------------------------------------------------
418
Answer Section --------------------------------------------------------------------------------------- ----------
426
4.3
4.4
5.2
5.3
5.4
5.5
6.2
6.3
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68