Improvement P2 Completed April 26th

Question 1

2. (a) State two features of a cooperative. [2]

Answer 1

• Democratic decision making
• They work on the principle of sharing profits (or losses) generated between members

Question 2

Define the term fixed cost [2]

Answer 2

Fixed cost is defined as those costs that do not vary through output
or quantity produced.

Question 2

Describe one feature of a mission statement [2]

Answer 2

Examples include:

• It could act as a motivator for employees by providing them with
  goals and a feeling of belonging to the organization
• It provides a sense of direction to the entire organization in terms
  of what to accomplish or pursue and which markets the organization will serve and how.