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CAIE IGCSE Business Studies 6.3 Business and the Environment Questions

Use this business-and-environment page to identify environmental effects, explain protection methods and judge legal-control impact.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • Identify environmental effects such as pollution, congestion, waste or resource use.
  • Explain advantages and disadvantages of protecting the environment for a business.
  • Justify whether environmental legal controls affect a business more than interest rates.

Covered syllabus points

6.3.1—Environmental issues

Question 1

[Maximum number: 2]

GAE is a multinational company. It manufactures steel. GAE has 2400 employees and has factories in 4 countries. The business regularly introduces new technology. Holding inventory is important. GAE's directors are planning to build a new factory and want to know how legal controls over location might affect this decision. The Managing Director said, 'The new factory will create many external benefits.'

Identify two ways legal controls over location might affect a business.

Way 1:
Way 2:

Question 2

[Maximum number: 4]

WFT is a primary sector business which harvests timber (wood) from trees. The Operations Manager knows there are many legal controls over business activity affecting the environment. WFT has 30 employees and uses a lot of technology to process the timber. The business is always considering ways to increase added value. WFT often needs finance. An extract from WFT's statement of financial position is shown in Table 1.1.

Table 1.1

Table 1.1

Outline two ways legal controls over business activity affecting the environment might affect WFT.

Way 1:
Way 2 :

Question 3

[Maximum number: 2]

TBX manufactures high-quality steel which is used to build railways. The method of production used allows TBX to benefit from economies of scale. The business holds a high level of inventory including iron ore. The Managing Director knows business activity could have an impact on the environment and is considering ways the business can contribute to sustainable development.

Identify two ways business activity could have an impact on the environment.

Way 1:

Way 2:

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