Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Gloria runs a sole trader business that offers house-cleaning services. She communicates with her 4 employees by telephone. She intends to grow the business by adding a repair service. Gloria is planning to conduct some market research. She has been advised that drawing up a business plan may reduce risk. She also wants to cut her own workload, so she is thinking about bringing in a business partner.
(a)[2]
Identify two ways that a business plan can help a business reduce risk.
(b)[2]
Identify two reasons why a business might wish to expand.
(c)[4]
Outline one benefit and one drawback for Gloria of using telephone calls to communicate with her employees.
(d)[6]
Explain two factors Gloria ought to take into account when deciding whether to take on a business partner.
(e)[6]
Explain two primary market research methods a business could use to discover demand for a new product or service. Which method would be best to use? 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: “May help obtain funding/bring in investors” …