Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Bill has spent 30 years working for a large IT company. He enjoys using computers, but he is struggling to stay motivated. Bill is considering setting up his own business to repair computers in customers’ homes. He believes there is demand for this service, although he recognises that starting a business involves risk. His secondary market research indicates that existing computer repair businesses charge high prices and do not provide home repairs. If Bill launches the business, he will need a vehicle. It would cost $6000, which Bill intends to pay for from his own savings. Bill would trade as a sole trader.
(a)[2]
What does ‘sole trader’ mean?
(b)[2]
Identify two methods used in secondary market research.
Method 1:
Method 2:
(c)[4]
Identify and explain two reasons why it would be important for Bill to be motivated if he launches his own business.
Reason 1:
Explanation:
Reason 2:
Explanation:
(d)[6]
Identify and explain two ways, other than financial help, that Bill could lower the risk of starting his business.
Way 1:
Explanation:
Way 2:
Explanation:
(e)[6]
Do you think using his own savings is the best source of finance for Bill for the vehicle? 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 business that is owned and controlled by one person” …