Business 7115 · O Level · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Kate is an entrepreneur. Two years earlier, she resigned from her role as a fashion designer at a multinational company. She launched BBB, a women’s sportswear clothing business. BBB aims at a market segment of high income consumers. BBB’s products are sold in 3 retail shops and also via its website. Kate said: ‘I spotted a gap in the market and decided to take the risk. Securing the finance I needed from the bank was not easy. I enjoy making decisions such as choosing leaflets to advertise the clothes.’ BBB’s revenue target for next year is $500 000.
(a)[2]
What does the term ‘entrepreneur’ mean?
(b)[2]
Identify two reasons why a new business might find it difficult to obtain finance.
(c)[4]
Identify and explain two possible reasons why Kate may have chosen to start her own business.
(d)[6]
Identify and explain two reasons why market segmentation might help BBB.
(e)[6]
Do you think leaflets are the best method for Kate to use when promoting her products? 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 person who organises / operates / accepts the risk for a new business venture” …