Max is an entrepreneur planning to set up a business that sells books. He has chosen to use ecommerce. He has also been told that the government offers support for start-up businesses. He plans to use market research to support his business decisions. Max understands that building customer loyalty is important for a new business.
(a)[2]
Define the term ‘entrepreneur’.
(b)[2]
Identify two reasons governments give support to start-up businesses.
(c)[4]
Outline two advantages for Max’s business of using ecommerce.
(d)[6]
Explain two ways Max could use market research to support business decisions.
(e)[6]
Explain two ways a business could build customer loyalty. Which is likely to be the best method for a new business to adopt? 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 person who takes the financial risk involved in starting, and running, a new business [2]” …