Business 0450 · IGCSE · Business objectives and stakeholder objectives
Business objectives and stakeholder objectives — practice question
SBG produces a variety of goods, including specialist paints. It operates 6 factories and employs 700 workers. All SBG’s employees are encouraged to take part in decision-making. SBG’s products are exported to 16 countries, with wholesalers as the main distribution channel. The Managing Director said that the business aims to grow and make a profit. He also recognises that all business activity creates externalities for SBG’s stakeholder groups.
(a)[2]
Define the term ‘externalities’.
(b)[2]
Define the term ‘stakeholder groups’.
(c)[4]
Outline two reasons why profit may be significant to SBG.
Reason 1:
Reason 2:
(d)[6]
Explain two ways SBG can include its employees in decision-making.
Way 1:
Explanation:
Way 2:
Explanation:
(e)[6]
Do you think using wholesalers is the most suitable way for a large business to distribute its products? 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: “Effects on third parties arising from production or consumption for which no compensation is paid” …