FLD operates as a furniture retailer. It has 460 shops and 20 000 employees. Internal recruitment is used when new shop managers are recruited. The Managing Director wants to find out whether job rotation is the best motivation method for a large business to use. The Finance Director is examining FLD’s income statement. An extract appears in Table 2.1. She is worried that FLD’s gross profit is falling.
(a)[2]
Define ‘profit’ in business.
(b)[2]
Identify two costs a business could incur.
(c)[4]
Outline two possible reasons for the decline in FLD’s gross profit.
(d)[6]
Explain two advantages for FLD of using internal recruitment when appointing new managers.
(e)[6]
Do you think job rotation is the most suitable method for a large business to use to motivate its employees? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A business’s total income (revenue) minus its total cost” …