Business 0450 · IGCSE · Economic issues

Economic issues — practice question

(a)[8]

Identify and explain two reasons that make profit important to BB.

(b)[12]

Consider the possible effects of the three changes below on BB. Which change is likely to have the greatest impact on BB’s profit? Justify your answer. The economy enters recession. The Government cuts income tax. The Government opens nurseries providing free child places to low income families. Final judgement.

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