Business 7115 · O Level · Enterprise, business growth and size
Enterprise, business growth and size — practice question
DSY is a private limited company. It manufactures washing machines and cleaning equipment. The Managing Director wants DSY to enter a different market. He intends to invest $2bn in developing electric cars. Competition in the electric car market is intense. This market is expanding very quickly. A leading pressure group has highlighted the environmental issues caused by non-electric cars. The Managing Director is aware that important choices still need to be made about the method of production and the brand image of the new car.
(a)[2]
State the meaning of ‘pressure group’.
(b)[2]
State the meaning of ‘brand image’.
(c)[4]
Outline two advantages that DSY gets from being a private limited company.
(d)[6]
Explain two factors DSY should take into account when choosing a suitable method of production for the new product.
(e)[6]
Do you think entering a market that is growing quickly and highly competitive is the best way for a business to expand? 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 group of people with a shared interest who take action to influence business decisions or government policies” …