Anna and James have set up a business partnership. They run an ice cream shop on the main street in Capital city. The shop employs 3 part-time workers and provides high quality ice cream to a niche market. Anna and James collect feedback by getting customers to complete questionnaires. Customers dislike the long queues and poor customer service. Anna believes these issues are caused by the shop always being busy. James has suggested relocating to a larger shop in a different area of Capital city.
(a)[2]
What does the term ‘niche market’ mean?
(b)[2]
Identify two disadvantages to a business of employing part-time workers.
(c)[4]
Identify and explain two possible reasons why Anna and James set up a business partnership.
(d)[6]
Identify and explain one advantage and one disadvantage to Anna and James’s business of asking customers to complete questionnaires.
(e)[6]
Do you think Anna and James should move to a larger shop? Support your answer with reasons.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A highly specialised section of a wider market” …