Business 7115 · O Level · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Mitchell is an entrepreneur who plans to launch a business selling books. As part of his business plan, Mitchell has completed some market research. An extract is shown in Fig. 2.1. Mitchell will use microfinance as a source of finance. He wants to find out whether the opportunities from using ecommerce for a new business are greater than the threats.
Extract from Mitchell’s 2023 market research data
Chart 1: Categories of people who read books
Children 35%
Students 18%
Adults 20%
Older people 27%
Chart 2: Book sales by type (million)
Electronic books 20
Audio books 10
Paperbacks 50
Hardbacks 15
(a)[2]
Define the term ‘entrepreneur’.
(b)[2]
Define the term ‘business plan’.
(c)[4]
Outline one benefit and one drawback to Mitchell of using microfinance as a source of finance.
(d)[6]
Explain how the market research information in Chart 1 and Chart 2 in Fig. 2.1 could help Mitchell when making decisions.
(e)[6]
Do you think the opportunities of ecommerce for a new business outweigh the threats? 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 person who organises, runs and accepts the risk of a new business venture” …