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CIPS Exam L4M2 Topic 2 Question 34 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 34
Topic #: 2
[All L4M2 Questions]

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?

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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

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