George has spent 10 years working in a small flower shop. He dislikes his manager’s autocratic leadership style and wants to move on. He must choose between setting up his own business and purchasing a BunchesRUs franchise. The franchise would cost him $5000, although BunchesRUs would provide training and support. Whichever option he picks, George will need finance and to hire 2 part-time employees. George understands that building customer relationships will matter to his business’s success.
(a)[2]
What does the term ‘autocratic leadership style’ mean?
(b)[2]
Identify two finance sources that George could use.
(c)[4]
Identify and explain two reasons why it may be important for George’s business success to build strong customer relationships.
(d)[6]
Identify and explain one advantage and one disadvantage for George’s business of employing part-time workers.
(e)[6]
Do you think George ought to buy a BunchesRUs franchise? 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: “manager expects to be the one in charge and for instructions to be obeyed” …