Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Kate is an entrepreneur. 2 years ago, she gave up her role as a fashion designer with a multinational company. She set up BBB, a women’s sportswear clothing business. BBB aims at a market segment of high income consumers. BBB’s products are sold in 3 retail shops as well as via its website. Kate said: ‘I spotted a gap in the market and accepted the risk. Securing the finance I needed from the bank was not easy. I enjoy making decisions such as using leaflets to advertise the clothes.’ BBB’s revenue target for next year is $500 000.
(a)[2]
What is meant by ‘entrepreneur’?
(b)[2]
Identify two reasons why obtaining finance may not be easy for a new business.
(c)[4]
Identify and explain two possible reasons why Kate decided to start up her own business.
(d)[6]
Identify and explain two reasons why segmenting the market might help BBB.
(e)[6]
Do you think that using leaflets is the best way for Kate to promote her products? 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 person who organises/operates/takes risk for a new business venture” …