Miguel is intending to launch a gym (sports club). It will provide a variety of fitness classes, including yoga. The business will operate as a partnership with his sister. Miguel believes the business will stay small in scale. Secondary market research will be used to support decisions, including which pricing method to adopt. Miguel understands that choosing an appropriate location is important for any new business.
(a)[2]
Define the term ‘partnership’.
(b)[2]
Identify two methods used to measure the size of a business.
(c)[4]
Outline two pricing methods Miguel could choose.
(d)[6]
Explain one advantage and one disadvantage to Miguel of using secondary market research.
(e)[6]
Do you think access to employees is the most important factor for a new business to think about when choosing a suitable location? 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: “Two (or more) people who agree to own a business together” …