12 marks
Define ‘primary sector’.
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Classification of Businesses (Cambridge (CIE) IGCSE Business): Exam Questions
Exam code: 0450 & 0986
1 hour12 questions
22 marks
Define ‘secondary sector’.
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32 marks
Define ‘private sector’.
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42 marks
State two examples of leisure businesses that operate in the tertiary sector
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54 marks
Outline two ways in which Tom's window cleaning business can be classified.
Case Study
Tom wants to leave his job to become an entrepreneur. He and his sister plan to start a window cleaning business. Tom has been told that new businesses are at a greater risk of failure than established businesses. Tom has to decide whether a partnership is a suitable form of business organisation for the new business. He has calculated the business will need $700 as start-up capital. Tom knows that every decision he makes will have an opportunity cost.
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64 marks
Outline two ways in which DBG can be classified.
Case Study
DBG is a construction company. It builds hospitals, roads and schools. DBG has 2000 employees. Managers use a democratic leadership style. They know effective internal communication is important. DBG plans to change its organisational structure. This will lead to some employees being made redundant. The Managing Director has to decide how changes in government spending might affect business activity.
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72 marks
Define 'privatisation'.
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18 marks
Explain four reasons for changes in the relative importance of the primary, secondary and tertiary sectors in a country.
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26 marks
Using the data from table, explain two possible reasons for the changing importance of the primary sector in country X.
Case Study
Country X has a mixed economy with both private and public sector organisations. These organisations are involved in different sectors of economic activity. In the last 20 years, the primary sector has become less important to country X’s economy. A summary of the changes is shown in below table. The government is planning to encourage multinational companies to set up factories in country X.
Economic sectors in country X as a percentage of GDP | |||
Year | Primary | Secondary | Tertiary |
2000 | 60% | 15% | 25% |
2020 | 20% | 30% | 50% |
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36 marks
Do you think important services, such as healthcare and education, should always be provided by the public sector? Justify your answer.
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112 marks
Consider the advantages and disadvantages of FBT Travel Agency expanding into the following two sectors.
Secondary sector (by manufacturing travel accessories)
Primary sector (by acquiring a small chain of eco-lodges with farmland)
Which sector should FBT choose to expand into? Justify your answer.
Refer to the following insert (opens in a new tab) when answering the question.
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212 marks
Consider the advantages and disadvantages of the following two ownership structures for LMN Logistics
Remain as a private sector company
Become a public sector (government-owned) enterprise
Which ownership structure should LMN Logistics choose? Justify your answer.
Refer to the following insert (opens in a new tab) when answering the question.
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