Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Avtar runs a private-sector car repair business. It is a small firm with 2 full-time employees. He wants to discover the most effective way for a business to raise added value. Avtar’s business needs finance for many different reasons. He also wants to find out how an economic recession could affect his business.
(a)[2]
Identify two features that describe a private sector business.
(b)[2]
Identify two reasons why a business might choose to remain small.
(c)[4]
Outline one reason why Avtar may need each of these types of finance:
Short-term finance.
Long-term finance.
(d)[6]
Explain two ways that an economic recession could affect Avtar’s business.
(e)[6]
Explain two ways a business can increase added value. Which is likely to be the best way for a business to use? 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: “Owned by private individuals / not owned by the government” …