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Unit 1 Business Test - 45 Mins

The document outlines a test for IGCSE Business (0450) Unit 1, featuring two case studies: Sarah's nursery business and Mayfair Solutions, a public limited company. It includes questions on business structures, success measurement, profit importance, growth challenges, employee compensation, and the implications of company conversions. The test assesses understanding of key business concepts and real-world applications.

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Teena Sheikh
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203 views1 page

Unit 1 Business Test - 45 Mins

The document outlines a test for IGCSE Business (0450) Unit 1, featuring two case studies: Sarah's nursery business and Mayfair Solutions, a public limited company. It includes questions on business structures, success measurement, profit importance, growth challenges, employee compensation, and the implications of company conversions. The test assesses understanding of key business concepts and real-world applications.

Uploaded by

Teena Sheikh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Date: 25-June 2024 Time: 45 mins

IGCSE Business (0450) – Unit 1


Test
Q1: Sarah set up a business as a sole trader running a nursery for small children too young to
go to school. The business is successful and has opened a number of new nurseries. Sarah
took on a business partner in 2007. By 2020, she had formed an Limited Company and took
on a few other shareholders from family and friends. Growth has continued and now the
business has 40 nurseries in different towns and villages.

(a) What is meant by the term “sole trader”? [2]


(b) Identify two ways of measuring the success of a business. [2]
(c) Identify and explain why profits are important for private sector businesses. [4]
(d) Identify and explain two problems that Sarah’s business could face due to rapid
growth. [6]
(e) Sarah’s business has just received a takeover bid from a large rival business. Do you
think that this takeover would benefit both employees and shareholders of the
business? Justify your answer. [6]

Q2: Mayfair Solutions, a public limited company, develops software packages for customers.
The staff it employs are highly paid, but Mayfair Solutions believes that this is money well
spent. The company has to keep updating its software packages because customer
requirements keep changing. The software market is very competitive.

(a) What is meant by the term “public limited company”? [2]


(b) A software development business is considered to be as a tertiary sector activity.
Identify two other examples of businesses in the tertiary sector.[2]
(c) Identify and explain two possible reasons why the staff at Mayfair Solutions are paid
high wages. [4]
(d) Identify and explain three problems that the need to keep updating its software
packages may create for Mayfair Solutions. [6]
(e) Consider the advantages and disadvantages of converting the public limited company
into a private limited company. Recommend whether the business should do this.
Justify your answer. [6]

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