Business 0450 · IGCSE · Internal and external communication
Internal and external communication — practice question
Gino runs a fast-food restaurant that serves fried chicken and potato fries. He has 5 full-time chefs and 12 part-time workers who prepare and serve the food. Communication matters, so Gino holds regular meetings with his part-time staff to keep them updated about any changes to the menu. It took 3 years for Gino’s business to reach break-even. He wants to achieve a Return on Capital Employed (ROCE) of 10%. Gino is always searching for ways to increase customer numbers. Inflation could be a difficulty for Gino’s business.
(a)[2]
Define ‘break-even’ for a business.
(b)[2]
Define ‘Return on Capital Employed’ for a business.
(c)[4]
Outline two problems that inflation might create for Gino’s business.
(d)[6]
Explain two ways Gino could attract more customers.
(e)[6]
Do you think regular meetings are a more effective way for a business to communicate with part-time employees than text messages? 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: “When total revenue is equal to total costs” …