2.3.3 Why reducing the size of the workforce might be necessary: • Difference between dismissal and redundancy with examples • Understand situations in which downsizing the workforce might be necessary, e.g. automation or reduced demand for products • Recommend and justify which employees to make redundant in given circumstances 2.3.4 Legal controls over employment issues and their impact on employers and employees: • Legal controls over employment contracts, unfair dismissal, discrimination, health and safety, legal minimum wage

2.3.2 The importance of training and the methods of training: • Importance of training to a business and to employees • Benefits and limitations of induction training, on-the-job training and off-the-job training Questions and suggested answers

2.3.1 Recruitment and selecting employees: • Recruitment and selection methods • Difference between internal recruitment and external recruitment • Main stages in recruitment and selection of employees • Recommend and justify who to employ in given circumstances • Benefits and limitations of part-time employees and full-time employees Questions and suggested answers

• Simple hierarchical structures: span of control, levels of hierarchy, chain of command • Roles and responsibilities of directors, managers, supervisors, other employees in an organisation and inter-relationships between them 2.2.2 The role of management: • Functions of management, e.g. planning, organising, coordinating, commanding and controlling • Importance of delegation; trust versus control 2.2.3 Leadership styles: • Features of the main leadership styles, e.g. autocratic, democratic and laissez-faire • Recommend and justify an appropriate leadership style in given circumstances 2.2.4 Trade unions: • What a trade union is and the effects of employees being union members sample questions and answers

Why people work and what motivation means • The benefits of a well-motivated workforce: labour productivity, reduced absenteeism and labour turnover • The concept of human needs, e.g. Maslow’s hierarchy • Key motivational theories: Taylor and Herzberg 2.1.2 Methods of motivation: • Financial rewards, e.g. wage, salary, bonus, commission and profit sharing • Non-financial methods, e.g. job enrichment, job rotation, teamworking, training, opportunities for promotion • Recommend and justify appropriate method(s) of motivation in given circumstances Sample questions and answers

PPT covering: Need for business objectives and the importance of them Different business objectives, e.g. survival, growth, profit and market share Objectives of social enterprises Main internal and external stakeholder groups Objectives of different stakeholder groups How these objectives might conflict with each other, use examples Questions and suggested answers

PPT Covering: Why the owners of a business may want to expand the business Different ways in which businesses can grow Problems linked to business growth and how these might be overcome Why some businesses remain small Why some (new or established) businesses fail: Causes of business failure, e.g. lack of management skills, changes in the business environment, liquidity problems Why new businesses are at a greater risk of failing Questions and suggested answers

PPT covering: Methods of measuring business size, e.g. number of people employed, value of output, capital employed (profit is not a method of measuring business size) Limitations of methods of measuring business size

PPT covering: Characteristics of successful entrepreneurs Contents of a business plan and how business plans assist entrepreneurs Why and how governments support business start-ups, e.g. grants, training schemes

PPT covering: • Basis of business classification, using examples to illustrate the classification • Reasons for the changing importance of business classification, e.g. in developed and developing economies

PPT covering the following: • Concepts of needs, wants, scarcity and opportunity cost • Importance of specialisation • Purpose of business activity • The concept of adding value and how added value can be increased

Floating and fixed systems. The demand for and supply of a currency in the foreign exchange market and the determination of the equilibrium foreign exchange rate. Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs. The effects of foreign exchange rate fluctuations on export and import prices and spending on imports and exports via the PED. The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system. Questions and suggested solutions

Multi-national companies and the costs and benefits to their host and home countries. The benefits for consumers, producers and the economy in a variety of countries. Tariffs, import quotas, subsidies and embargoes. Questions and suggested solutions

Floating and fixed systems. The demand for and supply of a currency in the foreign exchange market and the determination of the equilibrium foreign exchange rate. Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs. The effects of foreign exchange rate fluctuations on export and import prices and spending on imports and exports via the PED. The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system. Questions and suggested solutions

The basis for specialisation at national level in broad terms of: superior resource allocation and/or cheaper production methods. For consumers, firms and the economy. Questions and suggested solutions

Causes and impacts of differences in income; productivity; population growth; size of primary, secondary and tertiary sectors; saving and investment; education; and healthcare. Questions and suggested answers

Birth rate, death rate, net migration, immigration and emigration. How and why birth rates, death rates and net migration vary between countries. The concept of an optimum population. The effects of increases and decreases in population size and changes in the age and gender distribution of population. Note: interpretation of a population pyramid is required, but drawing is not. Questions and suggested answers