Business 0450 · IGCSE · Business objectives and stakeholder objectives
Business objectives and stakeholder objectives — practice question
GBR makes shoes. Under its current production method, GBR is able to produce 18 000 pairs of shoes each week. GBR is a limited company. Its chief aim is to raise profit. This aim can clash with the aims of other stakeholder groups, including GBR’s 450 employees. The business does not export any of its products. The directors are keen to examine the opportunities that globalisation could bring to GBR.
(a)[2]
Define what is meant by ‘limited company’.
(b)[2]
Outline two reasons why objectives may be important to a business.
(c)[4]
Outline two opportunities globalisation can offer GBR.
(d)[6]
Explain how one objective for each of the following stakeholder groups may conflict with GBR’s objective of increasing profit.
Employees’ objective.
Suppliers’ objective.
(e)[6]
Do you think market size is the most important factor for a business to consider when choosing a method of production? 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: “A business with a legal identity/status separate from its owners” …