EDEXCEL GCSE BUSINESS · PAPER 1
Exam Practice: Technology and Business
Technology and business · Understanding external influences on business · Lesson 2 of 5 · 13 marks · 20 minutes
Name Date
Answer all questions. Use the context of the business in the question where one is given.
Question 1 STATE [1 mark]
State one type of technology used by businesses.
Question 2 DEFINE [1 mark]
Define the term 'digital communication'.
Question 3 OUTLINE [2 marks]
Outline one way technology could reduce the costs of a small business.
Question 4 EXPLAIN [3 marks]
Explain one way that new payment systems could increase the sales of a small business.
Question 5 ANALYSE [6 marks]
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SOURCE Owen runs a small shop selling second-hand vinyl records. He sells only in his shop and takes only cash. He is thinking of setting up a website to sell records online and buying a card reader. |
Analyse the impact of technology on Owen's business.
Answers
Check your answer only once you have written one.
Question 1 [1 mark]
Social media.
▸ Any one of: e-commerce; social media; digital communication; payment systems 1 mark
Question 2 [1 mark]
Communicating electronically, for example by email, messaging apps, video calls, websites and social media.
▸ Electronic communication / examples such as email, social media 1 mark
Question 3 [2 marks]
Selling online through e-commerce (1) means the business does not need to rent an expensive high-street shop, so its fixed costs are lower (1).
▸ A way identified, e.g. e-commerce / cheap social media promotion / digital records 1 mark
▸ Developed: the effect on costs 1 mark
Question 4 [3 marks]
The business could accept contactless card and phone payments (1). Customers who carry no cash can still buy, and paying takes only seconds, so queues move faster (1). This means fewer customers walk away without buying, increasing the business's sales and revenue (1).
▸ A way identified, e.g. contactless / mobile card readers / online payment 1 mark
▸ First linked point of explanation 1 mark
▸ Second linked point of explanation 1 mark
Question 5 [6 marks]
Setting up a website would let Owen sell records to collectors anywhere in the country, not just those who visit his shop. Second-hand records are specialist products that collectors search for online, so e-commerce could increase his sales significantly. However, it would add costs - building the website, packaging and postage - and he would face strong competition from other online sellers, so he would need to price competitively. Buying a card reader would also affect his sales. Because he takes only cash, customers who carry no cash cannot buy, and he may be losing sales every day. A card reader is cheap, so taking card payments should increase sales for very little cost, although he will pay a small fee on each card payment, slightly reducing his profit per sale.
▸ AO2 (Application, 3 marks): uses the context - second-hand records, the shop, cash only, the website and card reader Level 1-3
▸ AO3a (Analysis, 3 marks): chains of reasoning about the impact on sales and costs Level 1-3