Cambridge International AS and A Level Business

Worksheet – Chapter 6
Business structure (A Level)
DGF Insurance is a large financial business. It operates in 25 countries. It is planning to open an office in
country Y for the first time. Country Y has its own small insurance companies, which employ 10,000 workers
in total. Increasing world trade and travel are increasing demand for insurance services.
1 Why could DGF be described as a ‘multinational’? [2]

2 Explain two reasons why international trade is growing. [4]

3 Explain two potential benefits to DGF of opening operations in another country. [4]

4 Explain two potential problems that DGF might face with this expansion in another country. [4]

5 Examine the potential advantages and disadvantages to country Y’s economy resulting from DGF’s
expansion there. [6]

© Cambridge University Press 2014 Cambridge International AS and A Level Business Worksheet – Chapter 6 1
Cambridge International AS and A Level Business

6 Ten years ago DGF was owned by the state in country X. It was then privatised and many workers were made
redundant. DGF has grown rapidly since then – including expanding overseas. It has taken over most of the other
insurance companies in country X. It is an eff icient and profitable organisation. Explain the term privatisation. [2]

7 Identify two of DGF’s stakeholder groups and explain the impact of the company’s privatisation on them. [8]

© Cambridge University Press 2014 Cambridge International AS and A Level Business Worksheet – Chapter 6 2