Business 0450 · IGCSE · Organisation and management
Organisation and management — practice question
SBL is a fast-food restaurant that sells 900 chicken burgers per week and has 14 employees. The owner, Vicki, trains her staff but does not yet use delegation. She is drawing up a break-even chart to help work out SBL’s margin of safety. Fig. 3.1 shows a break-even chart that is only partly completed. Vicki also wants to understand how an economic recession could affect her business.
(a)[2]
Identify the labels X and Y.
(b)[2]
Define ‘margin of safety’.
(c)[4]
Outline two advantages of Vicki delegating tasks to her employees.
(d)[6]
Explain two possible effects an economic recession could have on Vicki’s business.
(e)[6]
Explain two methods of training a business might use. Which method is likely to be best for a service business to use? 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: “X: Break-even point” …