Cambridge IGCSE · Business Studies (0450)

Environmental and ethical issues: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Environmental and ethical issues.

9 questions26 marksFree, no account

Question 1

1 mark

An enterprise is considering switching to fair trade suppliers for its raw materials. Which of the following is the most likely financial implication of this ethical consideration?

Question 2

1 mark

A manufacturing enterprise produces significant air pollution in a residential area. While the levels are within legal limits, the local community is protesting. What is the most likely long-term risk of the enterprise ignoring these ethical concerns?

Question 3

1 mark

Which of the following would be classified as a positive impact of an enterprise on the local community?

Question 4

1 mark

How does the adoption of organic farming as an ethical consideration most directly affect the operation of an enterprise?

Question 5

1 mark

What is the primary difference between a legal obligation and an ethical consideration for an enterprise?

Question 6

3 marks

State two potential benefits to an enterprise of choosing to source its raw materials from Fair Trade certified suppliers.

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Question 7

5 marks

An enterprise decides to stop using low-cost plastic packaging to reduce its environmental impact. Analyse one conflict this decision might create between different stakeholders.

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Question 8

5 marks

A social enterprise aims to provide clean water in rural areas while also making a profit. Describe how donating a portion of profits to charity impacts its financial records and its social objectives.

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Question 9

8 marks

A large textile manufacturer, EcoFab Ltd, is considering moving its production facility to a country with fewer environmental regulations to reduce costs. However, many of its customers in the home market value ethical production.

(a) Explain two ethical considerations EcoFab Ltd should take into account before making this decision. [4]
(b) Evaluate the likely impact on EcoFab Ltd's brand image and long-term profitability if they proceed with the move. [4]

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