12 marks
Identify two reasons why a business might change its objectives.
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Business & Stakeholder Objectives (Cambridge (CIE) IGCSE Business)
Exam Questions
1 hour17 questions22 marks
Define ‘stakeholder groups’.
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32 marks
Identify two examples of non-current assets.
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42 marks
Identify two objectives for a business organisation in the public sector.
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52 marks
Define ‘market share’.
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62 marks
Identify two objectives a new business might have.
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72 marks
Define ‘social enterprise’.
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82 marks
Define ‘pressure group’.
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18 marks
Explain two reasons why having business objectives is important to Gemma.
Refer to the following insert when answering the question.
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26 marks
Do you think the shareholders are the most important stakeholder group to the success of a limited company? Justify your answer.
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36 marks
Case Study
BKH is a large public limited company. It has 2 000 employees across 18 locations. BKH sells a range of insurance products, including house and car insurance. BKH’s shareholders want the business to increase profit. The Managing Director knows increasing profit can conflict with the objectives of other stakeholder groups. She said: ‘Private sector businesses have different objectives to public sector organisations.’ BKH is also planning to expand by taking over another insurance company.
Explain one way each stakeholder’s objectives might conflict with BKH’s objective to increase profit.
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46 marks
Case Study
DNG provides electricity to 16 million customers. It is a limited company which means DNG’s shareholders benefit from limited liability. DNG is planning to stop using coal to produce its electricity. Pressure groups had an influence on this decision. The Managing Director knows there will be an opportunity cost to making this change. She is considering the best way to communicate this important information to DNG’s 6500 employees.
Explain two ways a pressure group might influence DNG’s decisions.
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58 marks
Explain four business objectives Tokumbo could set for SA.
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66 marks
Case Study
CPF is a clothing retailer. It is a private limited company. It has 4 shops and 30 employees. The Finance Director is concerned about the amount of current assets because working capital is important. The amount of retained profit is also low. CPF’s directors are planning to expand the business by opening a new shop. A suitable source of long-term finance will need to be identified. The plan to expand will affect many of CPF’s stakeholder groups.
Explain one way each of the following stakeholder groups might be affected by CPF’s plans to expand its business.
Employees
Suppliers
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78 marks
Explain one business objective for ET and one other objective that a social enterprise like Daycare might have.
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112 marks
Consider the advantages and disadvantages of the following two options for RMT to achieve its objective of improving financial performance:
Close 10 stores and expand e-commerce operations
Keep all stores open but reduce costs
Which option do you recommend? Justify your answer.
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212 marks
Consider the impact of the following three stakeholder groups on TGR Electronics' decision-making:
Shareholders
Employees
Customers
Which stakeholder group is likely to have the most influence on TGR's future strategy? Justify your choice.
Refer to the following insert when answering the question
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