Business 7115 · O Level · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Hal aims to become a successful entrepreneur. He is planning to resign from his job and open a bakery. The bakery will be run in the private sector. The business will involve several stakeholder groups. Hal has been advised that a new business must choose a suitable source of start-up capital. He also understands that new businesses face a higher chance of failure.
(a)[2]
Define the term ‘private sector’.
(b)[2]
Identify two reasons why new businesses face a higher risk of failure.
(c)[4]
Identify four stakeholder groups that a business may have.
(d)[6]
Explain two characteristics Hal will need in order to become a successful entrepreneur.
(e)[6]
Evaluate whether a bank loan is the most suitable source of start-up capital for a new business. 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: “Business activities owned and operated by individuals” …