FLD operates as a furniture retailer. It runs 460 shops and employs 20
000 people. When new shop managers are hired, internal recruitment is used. The Managing Director wants to find out whether job rotation is the most effective motivation method for use in a large business. The Finance Director is checking 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’.
(b)[2]
Identify two expenses that a business could incur.
Expense 1.
Expense 2.
(c)[4]
Outline two likely reasons for the decline in FLD’s gross profit.
Reason 1.
Reason 2.
(d)[6]
Explain two advantages for FLD of using internal recruitment when appointing new managers.
(e)[6]
Do you think job rotation is the best method for a large business to use when motivating 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: “Total income/revenue less total costs” …