Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
TXE is a major food retailer. Last year, profit dropped by 10%, so the Finance Director is concerned. ‘I blame competition and increased taxes. We have spent more on sales promotions, but these have not been successful. We have to find ways to increase profits.’ TXE operates 200 shops and intends to shut 50 of them in order to cut costs. TXE might choose to offer a broader product range, including clothes, to help raise its profits.
(a)[2]
Identify two methods used to measure the size of a business.
(b)[2]
Identify two reasons why a Government might raise taxes.
(c)[4]
Identify and explain two possible reasons why sales promotions may not have achieved success for TXE.
(d)[6]
Identify and explain two factors TXE ought to consider when deciding which shops to close.
(e)[6]
Do you think TXE should offer a wider product range? 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: “Sales value OR output value OR revenue” …