Dipta and Ravi are friends who are planning to launch a chocolate-making business for sale at local markets. Many raw materials, including cocoa beans, will need to be brought in from overseas. Ravi’s primary market research indicates that consumers will like ingredients obtained from ethical suppliers. Neither Ravi nor Dipta has any business experience, although Dipta has prepared a business plan. They require $500 for equipment, but they cannot choose which source of finance to use.
(a)[2]
What does the term ‘business plan’ mean?
(b)[2]
Identify two different primary market research methods Ravi might have used.
(c)[4]
Identify and explain two benefits to Dipta and Ravi of behaving ethically.
(d)[6]
Identify and explain two possible advantages of importing for Dipta and Ravi’s business.
(e)[6]
Explain two sources of finance Dipta and Ravi could use. Recommend which source Dipta and Ravi should select. 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 document showing aims/objectives together with operational, financial and ownership details” …