Miguel intends to set up a gym (sports club). It would provide a variety of fitness classes, including yoga. The business will be organised as a partnership with his sister. Miguel believes the business will stay small in scale. Secondary market research will be used to support decisions, including the choice of pricing method. Miguel is aware that selecting a suitable location matters for any new business.
(a)[2]
Define the term ‘partnership’.
(b)[2]
Identify two methods used to measure the size of a business.
(c)[4]
Outline two pricing methods Miguel might use.
(d)[6]
Explain one advantage and one disadvantage for Miguel of using secondary market research.
(e)[6]
Do you think access to employees is the most important factor for a new business to consider when choosing a suitable location? 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: “Two (or more) people agree to own a business jointly (together)” …