©Ali Jan Damani

Test Topic: Classification of businesses

Instructor: Ali Jan Damani
Time: 30 minutes
Maximum Marks: 30

Student Name : ______________________________

Date : ______________________________

Parents’ Sign : ______________________________

Question Number Maximum Marks Marks Obtained

1 2

2 4

3 2

4 2

5 6

6 2

7 4

8 2

9 6

TOTAL MARKS: 30
OBTAINED MARKS:
PERCENTAGE:
GRADE:
©Ali Jan Damani

Read the following case study and answer the questions that follow:
ABC limited is a mining company which operates in Country Z. It mines coal
and has continued to add value to its product over the past few years.
However, in the trying times of COVID-19, the company has not been allowed
to mine. Thus, it has to reduce its work force. The Human Resource Manager
has suggested that this will add cost as a lot of specialized labour has to be
made unemployed. Owners of the company are also worried about the future
of the mining industry as the government is imposing new restrictions
recently. In Country Z, however, it is expected that in the upcoming 2 years,
manufacturing industry will take a toll over all other industries. Private
Owners and the government who are operating collectively in Country Z form
the mixed economy of the country.
1. What is meant by value addition? [2]
2. Explain two ways in which a mining firm add value to its product? [4]
3. Give two examples of firms operating in primary sector (other than
mining). [2]
4. What is meant by specialization? [2]
5. Do you think government restrictions can impact the profitability of ABC
Limited? Justify your answer. [6]
6. What is meant by mixed economy? [2]
7. Why do relative importance of various sectors of economy change over
time? [4]
8. What is meant by public Sector? [2]
9. Do you think that losing specialized labour will add to the cost of ABC
limited as suggest by the manager? Justify your answer. [6]