Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
DBR is a mining company. It is a large public limited company operating in the primary sector. DBR runs 8 diamond mines and employs 3000 workers. Specialisation matters. Over the last 5 years DBR has expanded rapidly. The Managing Director is concerned that diseconomies of scale may appear as the business keeps growing. In 2022 DBR made a profit of $600 million.
(a)[2]
Identify two advantages specialisation can offer a business.
(b)[2]
Identify two methods a business can use to grow.
(c)[4]
Outline one likely benefit and one likely drawback of DBR as a public limited company.
(d)[6]
Explain two diseconomies of scale DBR could face.
(e)[6]
Explain two methods that can be used to measure the size of a primary sector business. Which method do you think is the best? 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: “Raises output” …