Toddles is a children’s nursery. It operates in the tertiary sector and offers childcare for children aged 2-5 years. It is a sole trader business. The business employs 4 full-time workers, all of whom are fully trained and highly motivated. Each employee cares for 3 children. Last year, Toddles made a loss. ‘I don’t understand it, we have fantastic employees and a good location’ said the owner. ‘I need to find ways to make the business profitable.’
(a)[2]
What does the term ‘tertiary sector’ mean?
(b)[2]
Identify two ways, excluding training, that Toddles could use to motivate its employees.
(c)[4]
Identify and explain two advantages to Toddles of employing fully trained workers.
(d)[6]
Identify and explain two possible reasons why profit is important for businesses like Toddles.
(e)[6]
Explain two ways in which Toddles could become profitable. Recommend which way Toddles ought to use. 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: “Industry that provides or sells services” …