Section One 1 Section One Cambridge University Press 2010Business and the environment in which it operatesAnswers to multiple-choice and short questions1Working on resources to make a finished product that has a value that is more than the value of the resources used is calledcadding value.2Match each type of business to its classification. aholiday company tertiarybfishery primarycchemical processing plant secondarydforestry primaryesupermarket tertiaryfbicycle manufacturer secondary3Country X has a total workforce of 20 million. Of these, 15% are employed in the tertiary sector; 45% in the primary sector; and the remainder in the secondary. Calculate the number of people working in the secondary sector: 8 million4Which of the following is a diversifying merger?dConglomerate5Profit is a good measure of the size of a business.bFalse 6Building new roads and hospitals increases the national wealth.aTrue7People who have an interest in the activities of a company are called stakeholders.8Stakeholders can increase their influence by acting in groups. aTrue9Making a profit is one of the main objectives of organisations in the private sector. 10Selling goods on the internet is called e-commerce.11One disadvantage of introducing new technology isbemployees may need training. 12A mixed economy isaan economy which consists of both public and private sector organisations.13A multinational company isca company with operational bases in more than one country.2Section One Cambridge University Press 201014 The exchange rate of countries X and Y is 3 : 2. Calculate the cost in country Y of an item costing $9 in country X: $615Public sector organisations are owned by a(the government on behalf of ) members of the public.