Business 0450 · IGCSE · Enterprise, business growth and size

Enterprise, business growth and size — practice question

Xiolom is a mining company in the private sector. It is a very large firm employing over 100 000 workers. It operates in 10 countries. The Operations Director has announced plans to open a new mine in country G. He is furious. ‘First there are new legal controls over employment and now I must also handle pressure groups. The mine will generate 8000 jobs. Xiolom creates external benefits so it ought to be permitted to expand!’
(a)[2]

What does the term ‘private sector’ refer to?

(b)[2]

Identify two drawbacks of using ‘number of employees’ as a way of measuring business size.

(c)[4]

Identify and explain two ways that a pressure group might try to affect Xiolom’s decision about opening the new mine in country G.

(d)[6]

Identify and explain two ways in which Xiolom could be affected by new legal controls over employment.

(e)[6]

The Operations Director thinks that, because Xiolom produces external benefits, it ought to be permitted to expand. Do you agree? 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: Firms owned by private individuals or groups

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