Crompton Springs, a private limited company, bottles mineral water. The production method is automated but inefficient, because the machinery used was bought 20 years ago. The company uses unskilled and low paid workers to load and unload the production lines. The managers have decided to invest in new machinery.

1. (a)What is meant by 'production method is automated'?[2]
2. (b)Identify two features of a private limited company. Feature 1: ..., Feature 2: ...[2]
3. (c)Identify and explain two possible reasons why workers at Crompton Springs are low paid. Reason 1: ..., Explanation: ..., Reason 2: ..., Explanation: ...[4]
4. (d)Identify and explain three problems that inefficiency can cause a business. Problem 1: ..., Explanation: ..., Problem 2: ..., Explanation: ..., Problem 3: ..., Explanation: ...[6]
5. (e)Do you think that the employees at Crompton Springs will be happy with the managers' decision to invest in new machinery? Justify your answer.[6]