CIPS Exam L4M2 Topic 8 Question 41 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 41
Topic #: 8

ABC Ltd has enormous investment in facilities and machinery. It also employs skilled workforce. To be profitable, the company has to produce at massive quantity. Which sector does ABC Ltd belong to?

AManufacturing

BRetail

CConstruction

DAgriculture

EFinance

Show Suggested Answer

Suggested Answer: A

In the scenario, ABC Ltd has the following characteristics:

- Large investment in facilities and machinery

- Access to skilled workforce

- Mass production.

This company is a manufacturer. Manufacturing is an industry that makes products from raw ma-terials by the use of manual labour or machinery and that is usually carried out systematically with a division of labour.

Manufacturing requires investment in machinery and access to a suitably skilled workforce as well as materials and components.

- CIPS study guide page 74-76

- manufacturing | Definition, Types, & Facts | Britannica

LO 2, AC 2.1

by Jaime at Aug 09, 2024, 01:01 AM

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Miesha

2 months ago

Haha, imagine ABC Ltd being a construction company. They'd have to build the entire city to make a profit!

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Derick

3 months ago

Agriculture? Really? Unless ABC is growing crops using robots and laser-guided tractors, I don't see how that could be the right answer.

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Mayra

2 months ago

C: Definitely, agriculture doesn't make sense in this context.

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Janella

2 months ago

B: Yeah, with all that machinery and skilled workforce, it has to be manufacturing.

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Deeann

2 months ago

A: Manufacturing

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Boris

3 months ago

I'm going with manufacturing too. Massive production to be profitable? That sounds like a textbook manufacturing company to me.

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Shaquana

2 months ago

Definitely. It's all about efficiency and scale in manufacturing to be profitable.

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Wava

2 months ago

It makes sense. Skilled workforce and high production volume are key indicators of a manufacturing sector.

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Tammara

2 months ago

Yes, I agree. Manufacturing companies often require large investments in facilities and machinery to produce at a massive quantity.

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Maybelle

2 months ago

I'm going with manufacturing too. Massive production to be profitable? That sounds like a textbook manufacturing company to me.

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Carmela

3 months ago

I think ABC Ltd is in the finance sector, as they need to be profitable.

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Julio

3 months ago

I believe ABC Ltd is in the construction sector, as they have a lot of facilities.

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Renea

3 months ago

Definitely manufacturing. ABC's huge investment in facilities and machinery is a dead giveaway.

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Chauncey

2 months ago

Agreed, manufacturing is the correct sector for ABC Ltd.

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Glory

3 months ago

Definitely manufacturing. ABC's huge investment in facilities and machinery is a dead giveaway.

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Laticia

3 months ago

A) Manufacturing

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Bok

3 months ago

I agree with Lon, because they have a skilled workforce and invest in machinery.

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Lon

3 months ago

I think ABC Ltd belongs to the manufacturing sector.

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