Alex set up APB as a sole trader business 4 years ago. APB offers printing services to local businesses, including leaflets and brochures. Alex believes that a strong location matters to every business. All of APB’s employees are trained on-the-job. Alex uses a democratic leadership style and job rotation to maintain employee motivation.
To cope with higher demand, Alex intends to purchase another printing machine. It will cost $1800. Alex must choose the most suitable source of finance.
(a)[2]
Define the term ‘job rotation’.
(b)[2]
State two factors that a service sector business should think about when choosing a location.
(c)[4]
Outline one benefit and one drawback to APB of using on-the-job training.
(d)[6]
Explain one benefit and one drawback of Alex having a democratic leadership style.
(e)[6]
In your view, is the amount of money needed the most important factor for a sole trader to think about when selecting an appropriate source of finance? 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: “Employees moving between jobs/tasks over a period of time” …