Business 7115 · O Level · Business and the international economy
Business and the international economy — practice question
SNT operates as an ethical business. It makes a variety of soft drinks by using batch production. During 2023, SNT produced 300 000 bottles of soft drinks each week. A number of factors influence the level of inventory the business ought to keep. SNT’s directors plan to grow the business into fresh markets in other countries through a joint venture. They are also weighing up licensing as another method that could help deal with the possible difficulties of moving into these new markets.
(a)[2]
Define the meaning of ‘licensing’.
(b)[2]
Identify two factors which may influence how much inventory a business ought to keep.
(c)[4]
Outline two benefits to SNT of using batch production.
(d)[6]
Explain one advantage and one disadvantage to SNT of setting up a joint venture when moving into new markets in other countries.
(e)[6]
Do you think the benefits to a business of acting ethically are greater than the drawbacks? 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: “Business authorises another company to produce the branded/patented products under licence” …