Business 0450 · IGCSE · Organisation and management
Organisation and management — practice question
Kane founded LFP 8 years ago. LFP produces high quality furniture. LFP imports 40% of its materials, including wood. Kane understands that business activity is affected by many external factors, such as employment levels and import quotas. Because demand is rising, LFP needs to hire 5 extra production workers. Kane is busy drafting a job advertisement. Well-motivated employees are important to LFP. Kane is deciding between raising wages and introducing profit sharing. Kane also believes that a clear organisational structure is beneficial for a business.
(a)[2]
State two methods by which quality production can be achieved.
(b)[2]
Identify two advantages to a business of having a clear organisational structure.
(c)[4]
Outline two factors Kane should take into account when preparing the job advertisement.
(d)[6]
Explain how each of the following external influences might affect LFP: lower employment rates; introduction of import quotas.
(e)[6]
Do you think increasing wages is a better way for a business to motivate employees than profit sharing? 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: “Quality control” …