Mercy and Ayo are entrepreneurs. They intend to open a shop that sells homemade ice cream. Mercy wants the business to behave ethically and to buy only high-quality organic milk from local farms. Ayo used sampling to help him conduct some primary market research. Table 1.1 shows an extract of the results from the 300 people in the sample. Ayo believes that a new business stands a better chance of success if it is sited where there is no competition.
(a)[2]
Define the term ‘entrepreneur’.
(b)[2]
State two reasons why sampling is used when market research is carried out.
(c)[4]
Outline two ways ethical behaviour could help Mercy and Ayo’s business.
(d)[6]
Explain two ways in which the market research results can help Mercy and Ayo’s business.
(e)[6]
Do you think a new business has a better chance of success if it is located where there is no competition? 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: “Someone who organises and runs a new business venture and takes the risk involved” …