EDEXCEL IAL Topical Past Paper Unit 3

3.1.3 Business objectives

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section A

Section b

WEC13/01/June 2023

According to a 2021 World Bank report, small and medium-sized enterprises accounted for 98.5% of the businesses in Malaysia. The report stated that these businesses were reluctant to invest in the technology that would enable them to expand because many of them wanted to remain small.

Evaluate why the objectives of small and medium-sized enterprises may differ from those of large enterprises.
Illustrate your answer with an appropriate diagram(s). [20 marks]

WEC13/01/Jan 2023

The Government of Norway fully subsidises university education. Universities in Norway have social objectives rather than a profit maximising objective. By contrast, in the USA, students pay fees to study at profit maximising universities.

Evaluate the view that the objectives of state-owned enterprises and private sector organisations always differ.
Illustrate your answer with an appropriate diagram(s). [20 marks]

WEC13/01/Jan 2022

JBS is the largest meat processing firm in the world, as measured by value of sales. Its revenue was $814.5 million in 2020. After a significant increase in sales to China in quarter 4 2020, its total revenue from sales to China rose by 60%.

Evaluate the view that revenue maximisation is always the main objective of a firm.
Illustrate your answer with an appropriate diagram(s). [20 marks]