Rachel’s business makes and sells chocolate bars. Quality matters. Rachel is a sole trader who received government help when she set up her business. The business works in a competitive market. Rachel is thinking about ways to raise sales of her best-selling product. She is also planning to launch a new chocolate bar. Rachel knows that choosing the right pricing method for a new product is important.
(a)[2]
Define the term ‘sole trader’.
(b)[2]
Identify two ways in which a government can help business start-ups.
(c)[4]
Outline two ways Rachel could raise sales of her best-selling product.
(d)[6]
Explain two reasons why quality matters to Rachel’s business.
(e)[6]
Do you think price skimming is the best pricing method for a business to use when launching a new product? 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 business that is owned and controlled by one person” …