Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Hal wants to become a successful entrepreneur. He intends to resign from his job and open a bakery. The bakery will operate in the private sector. The business will involve several stakeholder groups. Hal has been advised that a new business should choose the right source of start-up capital. He also understands that new businesses face a higher risk of failure.
(a)[2]
Define the term ‘private sector’.
(b)[2]
Identify two reasons why new businesses face a higher risk of failure.
(c)[4]
Identify four stakeholder groups that a business could have.
(d)[6]
Explain two characteristics Hal will need in order to become a successful entrepreneur.
(e)[6]
Is a bank loan the best source of start-up capital for a new business? 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: “Business activities owned by private individuals” …