Business 7115 · O Level · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Ella has recently finished college and plans to launch her own business. She has created a new bicycle light with a safety feature that is absent from rival products. Ella realises that securing finance will be hard. She intends to have the lights made in another country. It will cost $8 to make each light. Ella is unsure whether to use price skimming. She said: ‘I have received orders for 300 lights and I have not even started promoting them’. Ella wants to become a successful entrepreneur.
(a)[2]
Identify two traits of a successful entrepreneur.
(b)[2]
Identify two possible reasons why Ella intends to have the lights produced overseas.
(c)[4]
Identify and explain two reasons why finance could be hard for Ella’s business to obtain.
(d)[6]
Identify and explain one advantage and one disadvantage to Ella of adopting price skimming.
(e)[6]
Recommend which promotion option Ella should choose. Support your answer with the evidence in Table 1.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “risk-taker” …