Business 7115 · O Level · Enterprise, business growth and size

Enterprise, business growth and size — practice question

Desmond aims to become a successful entrepreneur. He has chosen to give up his office job and launch a gardening business that cuts grass and plants flowers. It will operate as an unincorporated business. Desmond knows that a new business faces a higher chance of failure than one that is already established. He has worked out his business objectives for the first year. Desmond has worked out that he will need $750 as start-up capital.
(a)[2]

Define the term ‘unincorporated business’.

(b)[2]

Identify two objectives that a new business might have.

(c)[4]

Identify four traits of a successful entrepreneur.

(d)[6]

Explain two reasons, apart from lack of finance, why Desmond’s new business could be at greater risk of failure than an established business.

(e)[6]

Do you think owner’s savings are the best source of finance for a start-up 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: “A business that has no separate legal identity” …

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