Task Sheet 1

BACKGROUND TO THE BUSINESS

Pepper Publishing makes and sells magazines in the UK and across Europe. It is a private limited
company, with a turnover of £140 million in 1998. It employs 370 people and is not making enough
profit to satisfy shareholders, who have seen dividends fall for the past 3 years. To try and solve this
problem, Pepper are looking to produce a new magazine aimed at the 16-24 age group. You have been
given the job of marketing manager to try and ensure that the new magazine will be a success.

1. In your opinion, is Pepper Publishing a small, medium or large firm? Give reasons for your answer.

2. Pepper is in the secondary sector of the economy. Explain what this means. List a firm in the
primary sector and a firm in the tertiary sector who might be linked to the magazine industry.

3. What are the advantages of being a limited company like Pepper Publishing? Use the terms limited
liability & shareholders in your answer. You might also think about legal personality.

4. Explain the difference between the public sector and private sector. In which sector does Pepper
operate? List one public sector organisation with which Pepper might have dealings.

5. Explain 3 main aims or objectives of Pepper Publishing?

6. What is meant by ‘turnover’ (sometimes known as sales revenue)?

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