Y10 Business studies

Lavender, a Malaysian business, started with bakery, patisserie and takeaway shops. It has now
developed into several other businesses. L.café is a self-serve café selling a variety of cakes and
drinks. L.bistro is a casual dining place with a selection of Asian foods. L.table is a formal
restaurant that uses high quality and organic ingredients.
(Source adapted from: https://www.lavender.com.my/about-us-c1kfx)

(a) Define the term current liabilities. (1)

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(b) State one non-financial method of motivating staff at Lavender. (1)
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(c) Outline one reason why the revenue is higher for the Bakery shops rather than for L.café
and L.bistro. (2)
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(d) Explain one way a business can use penetration pricing. (3)
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@Iman Academy 1
Y10 Business studies

Figure 1 is an extract from Lavender’s Statement of Comprehensive Income. Use the

information below and then answer the following questions.

Bakery (000s MYR) L.café (000s MYR) L.bistro (000s MYR)

Revenue 149 75 65

Cost of sales 83 51 33

Gross profit 66 24 32

Gross profit margin 44.3% 49.2%

Figure 1
(e) Outline one reason why the revenue is higher for the Bakery shops rather than for L.café
and L.bistro. (2)
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(f) Using Figure 1, calculate the gross profit margin for L.café. You are advised to show your
workings. (2)

@Iman Academy 2
Y10 Business studies

(g) Analyse how the Statement of Comprehensive Income can be used by Lavender when
considering its expansion. (6)
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To expand by opening new outlets, Lavender will need to know what its customers’ needs and
wants are. In order to do this, Lavender are considering the following two options:
Option 1: primary market research
Option 2: secondary market research.
(e) Justify which one of these two methods Lavender should use. (9)
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@Iman Academy 3
Y10 Business studies

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Lavender already uses a website to promote its products.

(c) Evaluate the benefits to Lavender of using other forms of technology to promote its
products. (12)
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@Iman Academy 4
Y10 Business studies

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@Iman Academy 5