Business 7115 · O Level · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Si and Ramon are friends. They are planning to start a photography business that would take pictures at weddings, birthdays and other special events. The business is to be run as a partnership. From their primary market research, Si thinks there is enough demand. Ramon has drawn up a business plan showing that $8000 is needed for a shop and $4000 for equipment. They intend to spend $500 on promotion, but they cannot agree on the best method to use.
(a)[2]
What does the term ‘partnership’ mean?
(b)[2]
Identify two primary market research methods that Si and Ramon could have used.
(c)[4]
Identify and explain two possible finance sources they could use to buy the equipment.
(d)[6]
Identify and explain two benefits that Si and Ramon would gain from having a business plan.
(e)[6]
Consider two promotion methods that would be suitable for Si and Ramon. Which one of these would be the most suitable? 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: “Two or more people agree to own and manage a business together” …