AS BUSINESS Paper 2 Business 2

Answer all questions. box Read the source in the Insert. 0 1 Using the data in Figure 1, calculate the average weekly capacity utilisation in 2019. [3 marks] Answer Workings 0 2 The income elasticity of demand for Parkside Theatre cinema tickets is +1.5. Explain why this information is important for Parkside Theatre. [4 marks] Extra space 3 4 3 *03* Turn over ► IB/G/Jun20/7131/2 Do not write outside the box 0 3 Explain one ethical issue that the managers needed to consider when starting ‘Our Place’. [3 marks] Extra space Turn over for the next question 3 4 *04* IB/G/Jun20/7131/2 Do not write outside the box 0 4 Parkside Theatre faces fluctuating demand for its cinema. Analyse why this might make it difficult for Lorna to meet her cash flow objective.[9 marks] Extra space 9 5 *05* Turn over ► IB/G/Jun20/7131/2 Do not write outside the box 0 5 The board of directors insisted on Lorna using scientific decision-making techniques before investing in ‘Our Place’. Analyse why. [9 m