Business 0450 · IGCSE · Internal and external communication
Internal and external communication — practice question
S&V imports high quality spices and herbs, then sells them to local restaurants and shops. S&V wants to raise added value. As a business partnership, its owners do not have limited liability. One partner, Serena, is concerned that deliveries from some countries do not arrive on time, or that the wrong goods are sent. She said: ‘S&V cannot afford communication barriers with its many suppliers. Also, our customers want up-to-date information about spices and herbs that are in season.’ Serena must decide if e-mail is the best method for communicating with S&V’s customers.
(a)[2]
What does the term ‘limited liability’ mean?
(b)[2]
Identify two ways S&V can raise added value.
(c)[4]
Identify and explain two potential barriers to communication between S&V and its suppliers.
(d)[6]
Identify and explain one effect on S&V of each of the following changes:
Impact of a 10% increase in import tariffs.
Impact of new legal controls over food quality.
(e)[6]
Do you think e-mail is the best method for S&V to inform customers about its products? 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: “A shareholder’s liability in a company is restricted to the amount invested” …