Business 0450 · IGCSE · Enterprise, business growth and size

Enterprise, business growth and size — practice question

Desmond is aiming to become a successful entrepreneur. He has chosen to leave his office job and set up a gardening business that will cut grass and plant flowers. The business will be unincorporated. Desmond knows that a new business faces a higher chance of failure than an established one. He has set his business objectives for the first year. Desmond has worked out that $750 will be needed as start-up capital.
(a)[2]

Define ‘unincorporated business’.

(b)[2]

Identify two objectives a new business might have.

(c)[4]

Identify four characteristics of a successful entrepreneur.

(d)[6]

Explain two reasons, other than lack of finance, why Desmond’s new business could face a higher risk of failure than an established business.

(e)[6]

Do you think owner’s savings are the most appropriate source of finance for a start-up 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: “A business that has no separate legal identity” …

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