Alex set up APB as a sole trader enterprise 4 years ago. APB supplies printing services to local firms, including leaflets and brochures. Alex believes that a strong location matters to every business. All of APB’s workers are given on-the-job training. Alex adopts a democratic leadership style and uses job rotation to keep employees motivated. Because demand has risen, Alex intends to purchase another printing machine. This will cost $1800. Alex must choose a suitable source of finance.
(a)[2]
Define the term ‘job rotation’.
(b)[2]
State two factors that a service sector business should take into account when choosing a location.
(c)[4]
Outline one advantage and one disadvantage for APB of using on-the-job training.
(d)[6]
Explain one advantage and one disadvantage of Alex using a democratic leadership style.
(e)[6]
Do you think the sum of money required is the most important factor for a sole trader to consider when deciding on an appropriate source of finance? 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: “Employees change between jobs/tasks over a period of time” …