A-AS Level (CIE) Business Studies Paper-2: Specimen Questions with Answers 38 - 39 of 52


Case Study: 10

On 1st January 1990 X Ltd. purchased a Plant and Machinery for $ 43,000. It was estimated that the effective life of the Plant and Machinery will be 10 years and after 10 years its scrap value will be $ 3,000.

On 1st January 1991 the Company purchased additional machine for $ . 25,000, of which the effective life will be 15 years and scrap value $ 2,500. value will be ₹ 2,000 and effective life 20 years. On 1st July 1992 a new machine was purchased for $ 12,000 of which the scrap value will be $ 2000 and effective life 20 years.

Question 38 (5 of 5 Based on Passage)


Write in Short

Short Answer▾

Show the depreciation on 1st, 2nd and 3rd Machinery using the straight-line method.



Case Study-6

Farmington, Connecticut-based Otis Elevator is the world՚s largest manufacturer, installer, and servicer of elevators, escalators, moving walkways, and other vertical and horizontal passenger transportation systems. Otis products are offered in more than 200 countries worldwide, and the company employs more than 63,000 people. Among its many installations are the Eiffel Tower, Sydney Opera House, Vatican, CN Tower (Toronto) , and Hong Kong Convention Center. For years, the company had an ineffective performance management system that was excessively time consuming and inspired little confidence among employees or managers. In revamping its performance management, Otis moved toward a system that provided performance feedback based on critical strategic competencies related to the company՚s new focus on project teams. For this realignment into project teams to be successful, managers were required to demonstrate specific competencies in both team leadership and project management, as well as remain ac countable for the financial and operating results of projects.

Realizing that critical feedback in these areas could not come exclusively from immediate supervisors, Otis had a custom-designed 360-degree feedback system developed that provided managers with feedback from those most directly affected by their performance, their subordinates. encryption technology to secure all data, and allows a performance review to be completed in 20 minutes. The system allows Otis to provide performance feedback in tandem with the organization՚s strategic objectives; is far more efficient than the previous paper driven system; and perhaps, faith in the company՚s performance feedback system.

most importantly, has restored employee performance management.

Question 39 (1 of 4 Based on Passage)


Describe in Detail


How can 360-degree feedback mechanism help Otis revamp its performance management system?


The objectives of performance appraisal, listed above, point out poses which such an exercise seeks to meet. What needs emphasis performance evaluation contribute to firm՚s competitive strength. Besides employee՚s need for training. Specifically, performance appraisal helps organization gain competitive edge in the following ways:

  • improving employee job performance in ways-by directing employee behavior towards organizational goals, two as was done by the second beekeeper (see opening case) , and by monitoring that behavior to ensure that the goals are met.
  • Making Correct Decisions As stated above, appraisal is a critical input in making decisions on such issues as pay raise, promotion, transfer, training, discharges, and completion. example, is made on performance, the promoter feels motivated to enhance his or her performance.
  • Ensuring Legal Compliance Promotions made on factors other than performance might land up a firm in a legal battle, thus diverting its focus on non-productive areas, as it happened to Williamson Magar. Companies can minimize costly performance related litigation by using appraisal systems.

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