Business 0450 · IGCSE · Business objectives and stakeholder objectives
Business objectives and stakeholder objectives — practice question
ReBag operates as a social enterprise. Asha launched the business three years ago with micro-finance. ReBag employs 30 women across four small towns in different parts of the country. They work from home and produce a range of bags from pieces of old fabric (cloth). In the previous year, ReBag’s revenue was $700. Asha said: ‘Our external stakeholders want ReBag to employ women in five more towns. Securing a bank loan to expand the business is going to be a problem. What will I do about management? How will I communicate? I cannot keep visiting everyone.’
(a)[2]
What does the term ‘social enterprise’ mean?
(b)[2]
Identify two management functions, apart from communication, that Asha performs.
(c)[4]
Identify two external stakeholder groups for ReBag. Explain why each of those groups could be interested in this business.
(d)[6]
Identify and explain two possible reasons why ReBag could find it hard to obtain a bank loan.
(e)[6]
Explain two possible methods Asha could use to communicate with ReBag workers. Recommend which method she ought to choose. Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A business that has social objectives and also aims to make a profit” …