2. Which two of the following are likely to be sent to a business by a person applying for a job? Select two answers - Edexcel - GCSE Business - Question 2 - 2019 - Paper 1

The two approaches that are likely to increase the productivity of a business are:

• Retraining employees
• Introducing new technology

Retraining employees ensures that they are skilled and can adapt to changing demands, while new technology can streamline processes and enhance efficiency.

To calculate the average rate of return, use the formula:
$\text{Average Rate of Return} = \left( \frac{\text{Average Annual Profit}}{\text{Cost of New Machine}} \right) \times 100$
Substituting values:
$\left( \frac{100000}{400000} \right) \times 100 = 25\%$
Therefore, the average rate of return is 25%.

One significant benefit of having a good relationship with suppliers is that suppliers may offer better discounts on raw materials. For example, with strong partnerships, suppliers can provide lower prices:** This can reduce variable costs, thus potentially increasing the profit margin**. As a result, it enhances the profitability of the business.

One advantage of improving environmental sustainability is that it may enhance the business's ethical standing. This can attract environmentally conscious consumers and improve brand loyalty. Additionally, a sustainable approach can lead to cost savings by reducing waste and improving efficiency, which positively impacts the bottom line.