Cambridge IGCSE · 0450

Business Studies

External influences — Topic 6

Name: ____________________Date: November 12, 2026
  1. 1.

    A group of people living near a new factory, concerned about noise and traffic, is an example of which stakeholder group? A Shareholders B The local community C Suppliers D Competitors

    [1 mark] · no calculator
  2. 2.

    Explain one way in which the interests of a company's shareholders might conflict with the interests of its employees.

    [2 marks] · no calculator
  3. 3.

    A government raises indirect tax on sugary drinks. Explain the likely effect of this on a business that produces sugary drinks.

    [2 marks] · no calculator
  4. 4.

    A labour-intensive clothing manufacturer currently pays many workers at the existing minimum wage. Explain one likely effect if the government significantly increases the legal minimum above that rate.

    [2 marks] · no calculator
  5. 5.

    Explain one reason why a business might choose to act ethically (for example, by paying fair prices to suppliers) even if this reduces its short-term profit.

    [2 marks] · no calculator
  6. 6.

    A car manufacturer in Country X buys steel produced in Country Y. From Country X's perspective, this steel is: A An export B A tariff C An import D A subsidy

    [1 mark] · no calculator
  7. 7.

    Explain one benefit to a small domestic business of being able to export its products to other countries.

    [2 marks] · no calculator
  8. 8.

    A domestic shoe manufacturer faces increasing competition from cheaper imported shoes after the government removes a tariff on imports. Analyse two ways this could affect the domestic manufacturer.

    [3 marks] · no calculator
  9. 9.

    Discuss whether a growing domestic business should expand by selling into overseas markets, given that this exposes it to new competition and costs, as well as new customers.

    [4 marks] · no calculator
  10. 10.

    Explain one likely effect on a furniture retailer if the economy enters a recession.

    [2 marks] · no calculator
  11. 11.

    Explain one way a legal minimum wage could affect a labour-intensive business that currently pays below this new rate.

    [2 marks] · no calculator
  12. 12.

    A taxi company faces new competition from a ride-hailing app that uses smartphone technology to match drivers with passengers. Analyse how this technological change could affect the taxi company.

    [2 marks] · no calculator