Business 0450 · IGCSE · Classification of businesses
Classification of businesses — practice question
WMH is a business operating in the secondary sector. It produces furniture such as tables and chairs. All WMH employees are members of a trade union. The Managing Director recognises that the business is probably going to stay small. She is thinking about bringing new technology into WMH’s factory. She also knows that a manufacturing business needs to pick a suitable factory location.
(a)[2]
Define the term ‘trade union’.
(b)[2]
Define the term ‘secondary sector’.
(c)[4]
Identify four reasons why a business might continue to stay small.
(d)[6]
Explain two effects that WMH introducing new technology could have.
(e)[6]
Explain two factors a manufacturing business should take into account when choosing a suitable factory location. Which factor is likely to be the most important? 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 group of workers who unite to protect their interests” …