Gareth is preparing to launch a car washing business with government support. He is studying market research data to guide the key choices he has to make about the business. Extracts from this data are shown in Figure 3.1 and Figure 3.2. Gareth said: ‘I will need to set business objectives.’ He intends to keep the business small. Gareth is concerned about the possible impact of higher taxes.
Figure 3.1 shows a pie chart titled ‘Do you have a car?’ with 77% labelled ‘Yes’ and 23% labelled ‘No’.
Figure 3.2 shows a car illustration with the text ‘Average price paid for a car wash’ and the price ‘$6.34’ written inside the car.
(a)[2]
Identify two reasons that explain why businesses need objectives.
(b)[2]
Identify two possible reasons an owner might want the business to stay small.
(c)[4]
Outline two ways higher taxes could affect Gareth’s business.
(d)[6]
Explain how the data in Figure 3.1 and Figure 3.2 might be useful to Gareth.
(e)[6]
Do you think financial help, such as grants, is the best way for a government to assist business start-ups? Justify your answer.