IGCSE Business Studies

Multiple Chapter Assessment

1.1, 1.2 & 1.3
Name: _____________________
Class: ______________________

A. Camille is an entrepreneur. She owns a popular and successful

hairdressing business. Camille wants to expand her small business.
Camille currently employs 5 part-time workers, but she will have to recruit
3 more workers who will need on-the-job training. She thinks that her
laissez-faire leadership style will have to change as her business grows.

1. Identify two ways to measure the size of a business (other than

number of employees). Way
1: .............................................................................................................
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Way
2: .............................................................................................................
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......................................................(2)

Identify two characteristics of a successful entrepreneur.

Characteristic
1: .............................................................................................................
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Characteristic
2: .............................................................................................................
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..........................................[2]
 B. LEK owns 80 electrical shops. It sells products such as cell (mobile) phones
and televisions. The Marketing Director believes offering customers a
choice of products helps LEK to be competitive. LEK must use suitable
ways to communicate with its customers. LEKs directors are planning a
takeover of a competitor. This competitor owns 40 shops and operates in
the same 4 regions as LEK.

1. What type of integration is LEK considering?

....................................................................................................................... ...
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..................... ................................................................... (2)
2. Do you think that the takeover of the competitor would benefit LEK? Justify
your
answer. ..............................................................................................................
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..............................................................[6]

C. Lu is a sole trader. He manages a bakery shop making and selling bread

and cakes. He employs 4 workers all of whom are paid on time rate. Lu
wants to expand the business by buying a new shop and using it as a caf
(restaurant). He also wants to make a wider range of cakes, such as
wedding and birthday cakes, for which he thinks there is a demand. At
present the business sells all of the bread and cakes it makes.

1. Do you think that Lus business will be more profitable if he expands it by

opening a caf in a new shop? Justify your
answer. ..............................................................................................................
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..............................................................[6]

D. KSS production workers are highly skilled in doing just one task on the
production line. Identify and explain two advantages and two
disadvantages of workers being skilled in just one task. Advantage
1: ..................................................................................................................
.. ...................................................................................................................
.......................
Explanation: .................................................................................................
.................... .................................................................................................
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Advantage
2: .................................................................................................................... ..
...........................................................................................................................
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Explanation: ......................................................................................................
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Disadvantage
1: ............................................................................................................... .......
...........................................................................................................................
........
Explanation: ......................................................................................................
............... ...........................................................................................................
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Disadvantage
2: ............................................................................................................... .......
...........................................................................................................................
........
Explanation: ......................................................................................................
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.......................... [8]

E. Country W has a mixed economy. The public sector has grown in recent
years. The Government has also introduced many new laws regulating
business behaviour and protecting employees and consumers.
 1. What is meant by the term mixed
economy? ...............................................................................................
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[2] 2. Identify two objectives often set by businesses in the public
sector.

Objective
a. : ...........................................................................................................
........... .....................................................................................................
.....................................

Objective
b. : ...........................................................................................................
........... .....................................................................................................
................................ [2]

Identify and explain two reasons why the size of the public sector
might increase over time.
Reason
1: .............................................................................................................
...........
Explanation: ............................................................................................
......................... .......................................................................................
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.............................................................................

Reason
2: .............................................................................................................
...........
Explanation: ............................................................................................
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........................................................................ [4]

What are the four basic factors of production? (4)

Give two reasons for deindustrialisation.
(2)