Business 7115 · O Level · Enterprise, business growth and size
Enterprise, business growth and size — practice question
EQR operates 150 cafes. It offers a variety of drinks, coffee included. Being ethical matters to EQR. The Managing Director has been reviewing EQR’s statement of financial position. The business aims to raise its market share. The Managing Director intends to expand by selling franchises for $85\,000$. She is also considering methods of increasing added value.
(a)[2]
Define the term ‘market share’.
(b)[2]
Define the term ‘statement of financial position’.
(c)[4]
Outline $2$ ways EQR could raise added value.
(d)[6]
Explain $2$ advantages to EQR of selling franchises as a method of growing its business.
(e)[6]
Do you think a business acting ethically will always result in lower profits? 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: “Percentage of the total market sales captured by one brand/business” …