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Board: CIE Grade: 8 Subject: Business Unit: 1 Understanding Business Term: II

CT – 2 Date: __________________
Name: ____________________________________ Marks: 30
Grade: 8 Unit: Understanding Business Subject: Business Studies
Answer on an answer sheet and upload on Teams. Time – 45 minutes.
Section A: Tata grows through takeovers

Q1 What are some of the benefits to Tata of being a ‘conglomerate’? (4)


Q2 Why do you think Tata’s managers have used takeovers as a method of growth?
(4)
Q3 If Tata were to take over a chain of garages selling cars, identify and explain the
type of integration this is. Do you recommend this mode of integration to Tata?
Justify your recommendation. (7)
Section B: Private companies go ‘public’

Q1 Do you think it would be better to keep a business such as TD Power Systems


as a private company or convert it into a public limited company? Justify your
suggestion. (12)
Q2 Why are some business owners reluctant to convert their companies into public
limited companies? (3)

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