Business

• Explain one reason why a business might use performance reviews with

  its employees.

  Managers will discuss whether the employee has met their targets

  (1). As a result, the employee is more likely to be focused on their

  job (1). Thus, the employee is more likely to be productive (1).
• Explain one impact on a business of using flow production.

  The business will be able to automate the production line (1). As a

  result, the productivity of the business may rise (1). Therefore, the

  unit cost of making each item should fall (1).
• Explain one disadvantage to a business of using loan capital as a source of finance.

  Interest will have to be paid on the loan (1). Therefore, the fixed

  costs of the business will increase (1). As a result, the profit of the

  business may fall (1).
• Explain one reason why a business may decide to reduce the size of its workforce.

  New technology may mean that an employee can be replaced by

  a machine (1). This is because a machine can produce items

  much faster than an employee (1). As a result, the productivity

  of the business may increase by reducing the workforce (1).
• Explain one disadvantage to a business of having a poor relationship with its suppliers.

  Deliveries of raw materials may be late (1). Therefore,

  production may be disrupted (1). Thus, the business may not be

  able to meet the needs of its customers (1).
• Explain one impact on a business of introducing job rotation.

  Employee motivation may increase (1). This is because job

  rotation makes their work more interesting (1). Therefore, the

  business may experience an increase in productivity (1).
• Discuss the impact on a business from new tariffs being introduced by countries it exports to.

  Exported products will now become more expensive in the foreign market. Therefore, demand for the exported product in the foreign

  market could fall. As a result, revenue generated by the

  business from its foreign, export market may fall.