A town council has received complaints about long waiting times for a bus service. The council owns the buses and pays drivers using money raised through lo...

Assessment: Business 9225 | Paper 1 Mock 01 | Written Paper 1 Subject: Business - 9225

Question 1 Report

A town council has received complaints about long waiting times for a bus service. The council owns the buses and pays drivers using money raised through local taxes. It is considering adding an evening route, even though this route may not make a profit.

(a) Which type of organisation operates the bus service? [1]
(b) Identify one source of finance mentioned in the information. [1]
(c) Explain why the council might run an unprofitable evening route. [1]

Answer Details

(a) The bus service is operated by a public-sector organisation. It is owned by the town council. [1]

(b) The source of finance mentioned is local taxes. [1]

(c) The council may run an unprofitable evening route to provide a service for residents and meet public needs. Public-sector organisations do not always make profit their main objective. [1]

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