Business 7115 · O Level · Enterprise, business growth and size
Enterprise, business growth and size — practice question
BKH is a sizeable public limited company. It has 2 000 employees working across 18 sites. BKH offers a range of insurance products, including house insurance and car insurance. BKH’s shareholders want the business to raise profit. The Managing Director understands that raising profit can clash with the aims of other stakeholder groups. She said: ‘Businesses in the private sector pursue objectives that are different from those of public sector organisations.’ BKH is also planning to grow by taking over another insurance company.
(a)[2]
Define what is meant by ‘public sector’.
(b)[2]
Define what is meant by ‘profit’.
(c)[4]
Identify four different ways of measuring the size of a business.
(d)[6]
Explain one way in which each stakeholder’s objectives could conflict with BKH’s objective of increasing profit.
Customers objective.
How might this conflict.
Employees objective.
How might this conflict.
(e)[6]
Do you think economies of scale are the most important reason for taking over another business? Justify your view.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Businesses/organisations owned by the government or state” …