Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Ramon is an entrepreneur. He intends to launch a home tutoring service that would give students extra support in maths. He is thinking about buying a franchise. Although he has drawn up a business plan, he is worried that a rise in the inflation rate may affect his business. Ramon also wants to know whether crowdfunding is the most suitable source of finance for a start-up business to use.
(a)[2]
Define “inflation”.
(b)[2]
Identify two traits of a successful entrepreneur.
(c)[4]
Outline two ways a business plan could assist Ramon.
(d)[6]
Explain one benefit and one drawback to Ramon of buying a franchise.
(e)[6]
Do you think crowdfunding is the best source of finance for a start-up business to use? Justify your view.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A rise in the general price level of goods and services over time” …