CIE Business-Studies Paper-1: Specimen Questions with Answers 12 - 13 of 14


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: 12 (2 of 3 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Why might new technology cut the costs of a business?


Introduction of any kind of technology in an organization cuts the cost of the business and make people aware of new things, advanced ideas etc. some technologies completely change the cost structure for the service they provide for example Skype, provides an inexpensive service that replaces both international phone calls and videoconferencing, which previously could cost thousands of rupees annually. Focusing on the areas where improvement is needed and replacing it with certain improvement via technologies make it succeeds. Introduction of new technology helps in long run as it makes the work more efficient and it consumes less time.

Question number: 13 (3 of 3 Based on Passage) Show Passage

Essay Question▾

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.