Business 7115 · O Level · Enterprise, business growth and size
Enterprise, business growth and size — practice question
BHA sells clothing. It is a multinational company. BHA employs 2100 people and operates in 5 countries. In the previous year, BHA’s profit reached $90$ million. The owners of BHA want the business to expand, but the Managing Director is worried about the difficulties this could create. The Managing Director has found out that one of BHA’s suppliers uses child labour. She must judge whether changing supplier is the best response to this ethical issue.
(a)[2]
Define the term ‘profit’.
(b)[2]
Identify two reasons why the owners of a business might want to expand their business.
(c)[4]
Identify four possible disadvantages to a country if a multinational company locates there.
(d)[6]
Explain two possible problems for BHA caused by the growth of its business.
(e)[6]
Do you think changing suppliers is the best way for a business to respond to the ethical issue of child labour? 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’s total income (revenue) after total cost has been taken away” …