Avtar runs a car repair business in the private sector. The business is small and has 2 full-time employees. He wants to discover the best method for a business to raise added value. Avtar’s business requires finance for several reasons. He also wants to understand how an economic recession could influence his business.
(a)[2]
Identify two features that belong to a private sector business.
(b)[2]
Identify two reasons that can explain why a business may stay small.
(c)[4]
Outline one reason why Avtar may need each of the following finance types:
Short-term finance.
Long-term finance.
(d)[6]
Explain two ways an economic recession could influence Avtar’s business.
(e)[6]
Explain two ways a business can increase added value. Which one is likely to be the best choice for a business 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: “Owned by private individuals / not government-owned” …