Business & Ethical Issues (Cambridge (CIE) IGCSE Business): Exam Questions

ACP manufactures computers. Being ethical is important to ACP. The business employs 3000 workers in its factory. ACP imports 65% of its raw materials. As internal users of accounts, the directors plan to analyse ACP’s financial performance using profitability ratios. The Finance Director thinks making a profit is more important for a business than managing its cash flow.

TechCorp manufactures smartphones. The business has recently been criticised for unethical practices. The company employs 2500 workers across multiple factories. TechCorp sources 70% of its components from overseas suppliers. As internal users of accounts, the management team regularly reviews TechCorp's financial performance using liquidity ratios. The Chief Executive believes that maximising shareholder value is the primary objective of any business.

Green Tech Solutions is a renewable energy company that manufactures solar panels. The business has built its reputation on ethical practices and sustainable operations. Green Tech employs 2500 workers across three manufacturing sites and sources 70% of its components from certified ethical suppliers. The company's stakeholders include employees, customers, local communities, and environmental groups. The Managing Director believes that ethical behaviour creates long-term value for all stakeholders.