Business 0450 · IGCSE · Business finance

Business finance — practice question

AH is an insurance company. It operates within a highly competitive market. AH employs 1000 workers, including 50 supervisors. Those supervisors adopt an autocratic leadership style. AH currently has a 5% market share and is planning to acquire a competitor. The Managing Director is weighing up how to communicate the takeover to AH’s employees. There are many finance sources available to support business growth.
(a)[2]

Identify two duties carried out by supervisors.

(b)[2]

Identify two written communication methods.

(c)[4]

Outline two advantages to AH of taking over a competitor.

(d)[6]

Explain one advantage and one disadvantage to AH of its supervisors using an autocratic leadership style.

(e)[6]

Explain two sources of finance that could be used to support business growth. Which source of finance would be the best to use? Justify your answer.

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