Business 9609 · AS & A Level · Organisational structure
Organisational structure — practice question
Drake holds a law degree and spends the daytime working for a lawyers’ partnership. He also owns a website that offers free legal advice. In the evenings and at weekends, he works on the website. It began as a hobby, but it has expanded to more than 20 000 users, and he now sells advertising on his videos and on the website. Drake uses outsourcing for some parts of his website. He has recently received a report showing budget variances from the previous month (see Table 2.1). Drake has now resigned from his job and is concentrating full time on the website. He has rebranded the website as Law Advice Forum (LAF). Drake’s business plan for LAF included: operating as a sole trader; continuing to develop and grow the website to offer legal advice and paid legal services; leasing an office in city G where all employees would work; employing five fully qualified lawyers; employing three administrators; leasing IT equipment. However, Drake is worried about the drawbacks LAF will encounter as a labour intensive operation.
(a(i))[1]
Identify one external stakeholder involved in a business partnership.
(a(ii))[3]
Explain the term outsourcing.
(b(i))[3]
Refer to Table 2.1. Calculate the profit variance for Drake’s website for the previous month. State whether the variance is favourable or adverse.
(b(ii))[3]
Explain one way Drake could use the budget data in Table 2.1.
(c)[8]
Analyse two likely limitations of LAF as a labour-intensive operation.
(d)[12]
Evaluate which responsibility is most important for Drake as the owner of LAF.
Worked solution & mark scheme
This 30-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Customers / clients” …