Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Ella has only just finished college and is planning to launch her own business. She has created a new bicycle light with a safety feature that is not included in any competitor products. Ella knows that raising finance will be difficult. She intends to have the lights manufactured in another country. Each light will cost $8 to produce. Ella cannot decide whether to use price skimming. She said: ‘I have received orders for 300 lights and I have not even begun promoting them’. Ella wants to become a successful entrepreneur.
(a)[2]
Identify any two characteristics associated with a successful entrepreneur.
(b)[2]
Identify two possible reasons for Ella’s decision to produce the lights in another country.
(c)[4]
Identify and explain two reasons why finance may be difficult for Ella’s business to obtain.
(d)[6]
Identify and explain one advantage and one disadvantage of price skimming for Ella.
(e)[6]
Recommend which promotion option Ella ought to choose. Support your answer with evidence from Table 1.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Prepared to take risks” …