Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
EQR operates 150 cafes. Its range of drinks includes coffee. Ethics matters to EQR. The Managing Director has been examining EQR’s statement of financial position. The business aims to grow its market share. The Managing Director intends to expand the business by selling franchises for $85,000. She is also looking at methods to raise added value.
(a)[2]
State the meaning of ‘market share’.
(b)[2]
State the meaning of ‘statement of financial position’.
(c)[4]
Outline two different ways EQR could increase added value.
(d)[6]
Explain two advantages to EQR of selling franchises as a method of growing its business.
(e)[6]
Do you think a business acting ethically will always cause lower profits? 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: “Proportion of total market sales held by one brand/business” …