Business 7115 · O Level · Classification of businesses
Classification of businesses — practice question
WMH is a business operating in the secondary sector. It produces furniture, such as tables and chairs. All of WMH’s employees belong to a trade union. The Managing Director realises that the business is likely to stay small. She is thinking about introducing new technology into WMH’s factory. She also understands that, for a manufacturing business, selecting an appropriate location for a factory is important.
(a)[2]
Define the term ‘trade union’.
(b)[2]
Define the term ‘secondary sector’.
(c)[4]
Identify four reasons why a business might stay small.
(d)[6]
Explain two possible effects of WMH introducing new technology.
(e)[6]
Explain two factors a manufacturing business should take into account when choosing a suitable location for a factory. Which factor is likely to be the most important? 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 group of workers who unite so that their interests are safeguarded” …