CIE Business-Studies Paper-1: Specimen Questions 9 - 11 of 14
Hari Joshi runs a textile manufacturing business. He pays his workers a high hourly wage rate. He is thinking of introducing a piece rate element but with a lower hourly wage rate. He is not sure whether such a change would benefit either his business or his employees.
Question number: 9 (1 of 2 Based on Passage) Show Passage
Write in Short
Explain what is meant by a ‘high hourly wage rate’
The term hourly wage rate describes a rate an employer agrees to pay a worker per hour.
Say for example, if a person is to be paid 100/- per hour and he worked for 4 hours than at the end of the day he would be provided with 400/-.
Question number: 10 (2 of 2 Based on Passage) Show Passage
Write in Short
Do you think that the introduction of a piece rate element will benefit the following? Explain your answers.
(1) His employees:
(2) Mr Joshi’s business:
- His employees: - Piece rate element actually means payment by results i. e. the employee is paid for each unit of production at a fixed rate. Wage here is determined by the result and accordingly the amount is predefined and paid. Thereby the employees who works hard are benefited as they get wages according to how they work and no benefits will be given to the employees who simply used to sit for hours for making wages.
- Mr Joshi’s business: - Mr. Joshi’s business would definitely be benefited by this new policy as the workers would intend to work hard to get more wages and the workers who previously used to just sit for hours would as well work as no wages would be provided until and unless results comes out.
Priya would use any extra capital to invest in new technology. This should benefit the business by cutting costs and improving efficiency. Some managers have told her that new technology often causes problems.
Question number: 11 (1 of 3 Based on Passage) Show Passage
Describe in Detail
Why might new technology cause problems for a business?
Introduction of new technologies also causes problems in an organization as change is stressful. Good or bad, it adds tension to any office. Introducing or adding technology to a mission-based organization, or upgrading software or hardware such an organization uses, will change the way staff at the organization access and manage information. But without realistic expectations and a thoughtful strategy, a new system can create as many problems as it is supposed to solve.
-Expenses: Having cutting-edge technology is an ongoing expense. There are initial purchasing costs, as well as ongoing maintenance, updates and training expenses. May be these expenses in long run are not covered up with the profit earned. -Security: With cases frequently in the news, it is no surprise that there is a risk of cyber crime when utilizing technology. Not only cyber crimes, but loss of data, technical failures etc are the problems faced with every technology.
-Dependency: The more advanced society becomes technologically, the more people begin to depend on computers and other forms of technology for everyday existence. This means that when a machine breaks or a computer crashes, humans become almost disabled until the problem is resolved.