1
1 mark
Define the term tertiary sector.
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IGCSEBusinessEdexcelExam Questions1. Business Activity & Influences on BusinessClassification of Businesses
Classification of Businesses (Edexcel IGCSE Business): Exam Questions
Exam code: 4BS1
1 hour20 questions
2
1 mark
Case Study
Irsi Chocolatier is a chocolate shop in Brussels, the capital city of Belgium. There are many other chocolate shops nearby. Opened in 1989 by the Corne family the business now has four directors and three employees. Florent Corne is the Managing Director with three other family members as Directors. Irsi Chocolatier opens from Tuesday till Saturday. The shop sells a variety of handmade chocolates and jelly fruit sweets. It delivers locally and has a website for information purposes only.
Which one of the following is the sector that converts raw materials into products?
Select one answer.
Public
Tertiary
Primary
Secondary
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3
2 marks
Case Study
As We Grow (AWG) is a clothing business in Iceland. The social objective of the business is to use natural materials, such as wool, and produce environmentally friendly products. It aims to design clothes that will last a long time, to encourage families to buy fewer clothes and reduce waste in society.
AWG’s increasing product range now includes jumpers, dresses, shirts and baby clothes. These are produced in small workshops that employ family and friends. Waste is kept to a minimum and any leftover material is used to make scarves and hats.
The business has one store in Iceland. It uses its website to advertise and sell its clothing online to customers in other countries. The business has received the Icelandic Design Award for its contribution to the environment.
Outline why AWG can be classified as operating in the secondary sector.
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4
1 mark
Case Study
Thornton Steel Works is a manufacturing company based in Sheffield, England. The business was established in 2005 and employs 45 workers. It purchases iron ore and other raw materials from mining companies and transforms them into steel beams and girders used in construction. The company supplies its products to building firms across the United Kingdom. Thornton Steel Works operates from a large factory and has recently invested in new machinery to increase production capacity.
Which one of the following is the sector in which Thornton Steel Works operates?
Select one answer.
Tertiary
Primary
Secondary
Quaternary
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5
1 mark
Define the term primary sector.
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6
1 mark
Case Study
NEXT is a well-known clothing retailer that operates in 70 countries and employs over 43,000 employees. Since NEXT commenced trading it has introduced many other products to its range such as home interiors, flowers and a wedding list service.
In 1999 NEXT launched its own online shopping platform, enabling customers to purchase its products where ever they live. It continues to improve its customer service by introducing new initiatives such as next day delivery.
NEXT mainly uses its own factories for production. However, it does purchase some clothes such as ladies dresses from Turkish factories.
Which one of the following sectors would a retail outlet operate in?
Select one answer.
Primary
Secondary
Tertiary
Quarternary
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7
1 mark
Case Study
Bright Futures Tutoring is a private tutoring service based in Manchester, England. Founded in 2015 by Sarah Okonkwo, the business employs eight tutors who provide one-to-one and group tuition in Maths, English and Science. The company operates from a rented office but most sessions take place online or at students' homes. Bright Futures Tutoring also offers career advice workshops for secondary school students during the summer holidays.
Which one of the following best describes the sector in which Bright Futures Tutoring operates?
Select one answer.
Primary
Secondary
Tertiary
Quaternary
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8
2 marks
Case Study
Ocean Harvest (OH) is a small fishing business based in Cornwall, United Kingdom. The social objective of the business is to use sustainable fishing methods to protect marine life. It aims to supply fresh, locally caught fish to reduce the environmental impact of importing seafood from overseas.
OH's catch includes cod, mackerel, crab and lobster. These are caught by a small team of local fishermen using traditional boats. Any fish that do not meet size regulations are returned to the sea, and the business works closely with marine conservation groups.
The business sells its catch at a local harbour market. It also uses social media to promote its sustainable fishing practices and attract customers from nearby towns. The business has received a regional award for its commitment to responsible fishing.
Outline why OH can be classified as operating in the primary sector.
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9
1 mark
Define the term secondary sector.
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10
1 mark
Case Study
SteelCraft Ltd is a manufacturing company based in Birmingham that produces steel components for the construction industry. The company employs over 5,000 workers across its three factories in the UK. SteelCraft Ltd sources its raw materials, including iron ore and coal, from mining companies in Australia and Brazil.
In recent years, SteelCraft Ltd has invested heavily in automated machinery to improve the efficiency of its production processes. The company sells its finished steel components to construction firms and other businesses.
Which one of the following sectors does SteelCraft Ltd operate in?
Select one answer.
Primary
Secondary
Tertiary
Quaternary
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1
3 marks
Case Study
Oakhurst is a small dairy farm in New Zealand. It sells fresh milk to local supermarkets and has recently started producing its own cheese and butter.
Explain one benefit to Oakhurst of moving from the primary sector into the secondary sector.
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2
3 marks
Case Study
Bloom is a flower shop in Amsterdam, Netherlands. It buys flowers from local growers and sells them directly to customers. The owner, Katja, has noticed that more customers are ordering flowers online rather than visiting the shop.
Explain one reason why a business like Bloom operates in the tertiary sector.
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3
3 marks
Case Study
Ferro is a steel manufacturer based in São Paulo, Brazil. In recent years, the Brazilian economy has shifted, and the service sector has grown significantly, while manufacturing has declined.
Explain one impact on Ferro of the economy shifting towards the tertiary sector
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4
3 marks
Explain one reason why a country's economy might shift from the primary sector to the secondary and tertiary sectors over time.
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5
6 marks
Case Study
Maple is a sugar cane farm in Jamaica. The owner, Devon, is considering building a small factory on site to process sugar cane into packaged sugar and rum, rather than selling the raw cane to other manufacturers.
Analyse the benefits to Maple of moving from the primary sector into the secondary sector.
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6
6 marks
Case Study
Forge is a car parts manufacturer based in Turin, Italy. Over the past five years, several of its competitors have closed down as the Italian economy has shifted towards the service sector. Forge has seen a decline in orders from Italian carmakers, who are increasingly sourcing cheaper parts from factories in Asia.
Analyse the impacts on Forge of the Italian economy shifting towards the tertiary sector.
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7
3 marks
Case Study
Sahara is a cotton farm in Egypt. The owner, Hassan, currently sells raw cotton to textile factories. He has noticed that the price of raw cotton has dropped significantly over the past two years due to increased competition from cheaper suppliers in India and Bangladesh.
Explain one reason why Hassan might consider moving Sahara into the secondary sector.
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1
9 marks
Case Study
BrightPath is a private tutoring company based in Manchester. It was founded by Amara eight years ago and employs twelve tutors. BrightPath provides one-to-one and small group tutoring sessions in maths and science to secondary school students. Over the past two years, demand for in-person tutoring has fallen by 25% as families increasingly choose cheaper online tutoring platforms. Amara has £40,000 in savings.
Amara is considering two options to improve the business's financial position:
Option 1: Remain in the tertiary sector and reduce costs by moving all tutoring sessions online, cutting the expense of renting classroom space.
Option 2: Move into the secondary sector alongside tertiary operations by producing and selling branded revision guides and workbooks, while continuing to offer tutoring services.
Justify which one of these two options BrightPath should choose.
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2
12 marks
Case Study
Cresta is a small coffee farm in Colombia. It was set up fifteen years ago by Sofia Reyes and employs twelve workers who harvest coffee beans by hand. The beans are sold to large international companies who roast, package and sell them under their own brand names. Sofia has noticed that the price she receives for raw coffee beans has fallen steadily over the past three years, while the price of branded coffee in shops continues to rise.
Sofia has recently completed a course in coffee roasting and has saved $40,000 from the business over the past five years. A roasting machine and packaging equipment would cost around $35,000. Cresta has a strong reputation locally for producing high-quality beans, and Sofia has been approached by several independent cafés in Bogotá who are interested in buying locally roasted Colombian coffee.
Sofia is considering whether Cresta should move into the secondary sector by roasting and packaging its own coffee to sell directly to customers online.
Evaluate whether Cresta should move into the secondary sector by roasting and packaging its own coffee. You should use the information provided as well as your own knowledge of business.
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3
9 marks
Case Study
Harvest is a lavender farm in the south of France. It was set up by Pierre twenty years ago and employs fifteen workers. Pierre sells his raw lavender to large cosmetics companies who use it to produce perfumes, soaps and essential oils. Over the past three years, the price Pierre receives for raw lavender has fallen by 20% due to cheaper imports from Eastern Europe. Pierre has €50,000 in savings.
Pierre is considering two options to improve the business's financial position:
Option 1: Remain in the primary sector and reduce costs by investing in automated machinery to replace some manual labour.
Option 2: Move into the secondary sector by building a small production unit to process lavender into essential oils and soaps, and sell them directly to tourists and local shops.
Justify which one of these two options Harvest should choose.
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