Sample+Paper+C+Solutions.pdf, Exams of Business

Download Sample+Paper+C+Solutions.pdf and more Exams Business in PDF only on Docsity! Junior Cycle Final Examination Sample Paper C Solutions Business Studies Common Level Time: 2 hours 270 marks [48]Junior Cycle Final Examination Business Studies – Common Level EP J 0 09 Section A 90 marks Question 1 Any three of the following: • Increased productivity among staff • Reduced labour turnover • Reduced absenteeism • Better service to customers (6) Question 2 (a) Contactless payment technology enables payment transactions via a contactless chip embedded in payment cards, tags, key fobs and mobile phones. The buyer can tap the payment machine and does not need to enter a PIN or sign for their purchase. (3) (b) One of the following: Retailer: • Speeds up checkout queue • May increase revenue as sales are quicker and more convenient Consumer: • Quick and convenient • No need to remember a PIN (3) Question 3 • Financial cost: Price of hotel rooms may go up • Who is affected: Tourists • Social benefit: May make more long-term rental stock available • Who is affected: Anyone who does not own their own home (6) Question 4 Characteristic True or False There are many suppliers of the good or service. False There are barriers to entering into the market. True Seller may increase prices as there is no competition. True Question 5 Product Complementary Good Substitute Good Smart Phone  Cover/Case  Laptop  (6) (6) [51]Junior Cycle Final Examination Business Studies – Common Level Educate.ie Sam ple C Solutions Section B 180 marks Question 16 (a) (i) Employee: Karen Doyle PPS: 36594629K Week ended: 10/08/18 Basic pay €600.00 Commission €800.00 GROSS PAY €1,400.00 Tax credit €63.46 Deductions PAYE €216.54 PRSI/USC €112.00 Savings €60.00 Union €18.00 Total deductions €406.54 NET PAY €993.46 Workings: Commission: 2% × €40,000 = €800 Tax credit: €3,300 ÷ 52 = €63.46 PAYE: 20% × €1,400 = €280 Less tax credit (€63.46) Total PAYE = €216.54 PRSI/USC: 8% × €1,400 = €112 Total deductions: €216.54 + €112 + €60 + €18 = €406.54 Net pay: €1,400 – €406.54 = €993.46 (ii) Term Explanation Gross pay This is pay before deductions. PAYE Pay as you earn. This is the main income tax in Ireland. The more you earn the more you pay. Tax credit This is a reduction on the amount of tax owed. It is subtracted from gross tax. Net pay This is pay after deductions have been subtracted. Commission This is a method of payment for sales people where they receive a percentage of their sales in addition to a basic wage. (20) (10) [52]Junior Cycle Final Examination Business Studies – Common Level EP J 0 09 (b) (i) A trade union is an organisation of workers set up to protect and improve the employment rights and conditions of its members, for example, the Irish Nurses and Midwives Organisation (INMO) represent nurses and midwives. (5) (ii) Any three of the following: • To increase members’ pay • To improve members’ working conditions • To give information and advice to members • To represent members involved in industrial disputes • To protect members’ jobs (6) (iii) A shop steward is the worker who has been elected by the union members to represent them in the workplace. They are the first point of contact for a union member who has a problem at work. They pass on union information to union members. They represent union members in talks with management. They help resolve industrial relations issues in the workplace. (5) (iv) An official strike must give one week’s notice to the employer. (4) (c) (i) Paypath (4) (ii) Any two of the following: • It is safer than a pay packet into her hands that may be lost or subject to theft. • It is more convenient as it saves her having to go to the bank to lodge the money. • She could save more as she may be more likely to spend the money if she receives her wages in cash. (6) Question 17 (a) Activity Benefit Employment Working at Caroline’s Cars Income Work Housework Sense of satisfaction Volunteerism Friends of the Elderly Meeting people and building relationships (b) This is a good opportunity for a garage such as Caroline’s Cars Ltd as it has a stock of electric cars. It has an opportunity to approach local businesses and encourage them to buy electric vehicles for their business fleet as this is a saving for them and will be an increase in revenue for Caroline’s Cars Ltd. (4) (6) [53]Junior Cycle Final Examination Business Studies – Common Level Educate.ie Sam ple C Solutions (c) (i) Income Statement of Caroline’s Cars Ltd as at 31/12/2017 Sales 101,600 Less cost of sales Opening stock 26,000 Purchases 40,000 Carriage in 1,000 Cost of goods available 67,000 Less closing stock 32,000 Cost of sales 35,000 GROSS PROFIT 66,600 Less expenses Wages 42,000 Light and heat 1,800 Insurance 4,200 Advertising 2,100 Internet and telephone 1,500 Depreciation: Machinery 10,000 Motor vehicles 1,000 11,000 62,600 NET PROFIT 4,000 Reserves 55,000 PROFIT AND LOSS BALANCE 59,000 (ii) Authorised share capital – Issued share capital = €10,000 Workings: 150,000 – 140,000 = 10,000 Authorised share capital is the amount of capital a company can issue to shareholders. This is outlined in the business’s Memorandum of Association. Issued share capital is the total of the number of shares allocated to shareholders. This amount can be less than or equal to the authorised share capital. (2) (20) (4)