Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
PYG is a private limited company located in country A. PYG manufactures metal cans for food products by using flow production. The Operations Director has been reviewing the operations data in Table 1. In the previous year, PYG had difficulty replacing the 15 production workers who left the company. Most of PYG’s output is exported. The Operations Director believes that relocating production to another country could create more advantages than disadvantages.
(a)[2]
What does the term ‘private limited company’ mean?
(b)[2]
Calculate the output per employee per week for 2014.
(c)[4]
Identify and explain two reasons why calculating output per employee matters to PYG.
(d)[6]
Identify and explain two possible problems for PYG from using flow production.
(e)[6]
Do you think that the advantages of relocating production to another country would outweigh the disadvantages for PYG? 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 business in which shares are not available for sale to the general public” …