Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
PCB is a public limited company. It manufactures a well-known brand of mobile (cell) phones. Because it operates in a competitive market, pricing matters. PCB wants to expand its product range. It plans to produce luxury headphones since demand for them is rising quickly. The Operations Director must choose whether PCB should create its own headphones brand or acquire an existing producer. In both cases, the finance would come from a share issue.
(a)[2]
What does the term ‘brand’ mean?
(b)[2]
Identify two pricing methods PCB could use for its mobile phones.
(c)[4]
Identify and explain two benefits to PCB of widening the range of products it sells.
(d)[6]
Identify and explain one advantage and one disadvantage to PCB of issuing new shares as a source of finance.
(e)[6]
Recommend which option for increasing the product range the directors should choose. Support your answer with the information in Table 1.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A unique name, feature or design, or logo/image, of a product or business that makes it different from others” …