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

The government in Priya’s country has recently passed new laws concerning working conditions. These include Health and Safety at Work laws and a maximum number of hours that can be worked per week. Do you think that employees always benefit from such laws? Justify your answer.


Employees are always benefited from the laws which take care of their health and safety.

-A well-managed health and safety organization.

-A positive and caring image.

-Improved staff morale.

-Reduced staff turnover.

-Reduced absenteeism.

-Increased productivity.

-Reduced health care/insurance costs.

-Reduced risk of fines and litigation.

-Lessened threat of legal action.

-Improved standing among suppliers and partners.

- Better reputation for corporate responsibility among investors, customers and communities.

-Increased productivity, because employees are healthier, happier and better motivated.