Business 0450 · IGCSE · Achieving quality production
Achieving quality production — practice question
BCZ is a multinational business operating in 12 countries. It produces cement, a building material that construction firms use, so maintaining quality is vital. Cement production generates external costs. One of BCZ’s factories is in country X. The government of country X intends to introduce new legal controls that would cut the maximum working week from 45 to 35 hours.
(a)[2]
Define what is meant by ‘external cost’.
(b)[2]
State two duties of a director.
(c)[4]
Identify four possible benefits to a country’s economy when a multinational company sets up there.
(d)[6]
Explain one likely effect on BCZ and one likely effect on its employees of the new legal controls that will reduce the maximum number of working hours.
(e)[6]
Do you think quality assurance is a better option than quality control for a large manufacturer? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Costs that society/third parties have to bear as a result of business activity” …