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Cambridge International AS & A Level: BUSINESS 9609/12

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Cambridge International AS & A Level

BUSINESS 9609/12
Paper 1 Short Answer and Essay February/March 2021

1 hour 15 minutes

You must answer on the enclosed answer booklet.


* 8 4 1 0 1 6 2 9 9 4 *

You will need: Answer booklet (enclosed)

INSTRUCTIONS
● Section A: answer all questions.
● Section B: answer one question.
● Follow the instructions on the front cover of the answer booklet. If you need additional answer paper,
ask the invigilator for a continuation booklet.

INFORMATION
● The total mark for this paper is 40.
● The number of marks for each question or part question is shown in brackets [ ].

This document has 4 pages. Any blank pages are indicated.

DC (RW) 204758
© UCLES 2021 [Turn over
2

Section A (Short Answer)

Answer all questions.

You are advised to spend no more than 35 minutes on Section A.

1 (a) Define the term ‘opportunity cost’. [2]

(b) Explain two qualities an entrepreneur is likely to need for success. [3]

2 (a) Define the term ‘demand’. [2]

(b) Explain two factors which might influence supply of a product. [3]

3 Explain the effects on a business of having a high level of working capital. [5]

4 (a) Define the term ‘transformation process’. [2]

(b) Explain two ways in which a business could improve its intellectual capital. [3]

Section B (Essay)

Answer one question only.

5 (a) Analyse the benefits to a business of recruiting employees from outside the business. [8]

(b) Discuss whether the use of Herzberg’s two factor theory could improve employee motivation
in a school. [12]

6 A furniture manufacturer is planning to introduce CAD and CAM into the production process.

Discuss the extent to which this could make the business more competitive. [20]

7 (a) Analyse why a business might invest in market research. [8]

(b) Discuss whether an airline business might increase its profits by more effective market
segmentation. [12]

© UCLES 2021 9609/12/F/M/21


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© UCLES 2021 9609/12/F/M/21


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Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of the University of
Cambridge Local Examinations Syndicate (UCLES), which itself is a department of the University of Cambridge.

© UCLES 2021 9609/12/F/M/21

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