Gresham Textiles manufactures high quality clothing. Production is labour intensive. Managers are paid more than production line workers in the factory. The business is investing in automated machinery. The management also wants to introduce lean production methods.

1. (a)What is meant by ‘labour intensive'?[2]
2. (b)Identify two suitable sources of finance that Gresham Textiles could use to finance the investment in automated machinery.[2]
3. (c)Identify and explain two reasons why factory managers are paid more than production line workers at Gresham Textiles.[4]
4. (d)Identify and explain two ways lean production methods could reduce costs in the factory.[6]
5. (e)Do you think that a change to automated methods of production would benefit customers of Gresham Textiles? Justify your answer.[6]