CIE IGCSE Topical Past Paper 1

1.2 Classification of businesses

045/12/M/J/2024

GTB is a business which operates in the tertiary sector. It owns 5 cafés selling food and drinks. The business uses social media as its method of promotion. The Finance Manager, Moeen, is analysing GTB’s financial statements. An extract is shown in Table 2.1. He is considering ways to improve GTB’s profit margin. Moeen knows there are other users that are interested in the accounts of a business.

Extract from GTB’s financial statements 2023
Revenue	$600 000
Profit	$150 000
Capital employed	$750 000
Profit margin	25%

Table 2.1

(a) Define ‘tertiary sector’. [2]

045/12/M/J/2024

TCH is a small bakery producing pastries and cakes. It operates in the secondary sector. The added value of TCH’s products has increased since it opened 3 years ago. TCH uses non-financial methods to motivate its 6 employees. TCH’s business objectives have changed since it started up. One of
its new objectives is to expand. Many businesses use external recruitment when they expand.

(b) Define ‘secondary sector’. [2]