Business 7115 · O Level · Recruitment, selection and training of employees

Recruitment, selection and training of employees — practice question

(a)[8]

Explain two reasons why KAT may be in danger of failing.

(b)[12]

Using Appendix 1 and the other information, assess the benefits and drawbacks of KAT’s three employees. Which employee should Kris and Anaa make redundant? 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: Liquidity problems/poor financial management - high fixed costs were matched by falling revenue - shortage of cash created cash flow problems - possible payment needed to make one employee redundant

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