Business 0450 · IGCSE · Enterprise, business growth and size

Enterprise, business growth and size — practice question

(a)[8]

Explain four reasons why governments back the start-up of new businesses.

(b)[12]

Using Appendix 1 and the other information provided, assess how AF may be affected by the following three changes in legal controls over employment issues in country X. Which legal control will have the greatest effect on AF? Justify your answer. • Increase in the legal minimum wage • Additional health and safety regulations • Employees can only work a maximum of 50 hours each week

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This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: To reduce unemployment - new businesses can generate jobs

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