Camille is an entrepreneur. She owns a popular and successful hairdressing business. Camille wants to expand her small business. Camille currently employs 5 part-time workers, but she will have to recruit 3 more workers who will need on-the-job training. She thinks that her laissez-faire leadership style will have to change as her business grows. Identify two ways to measure the size of a business (other than number of employees). Way 1: Way 2: Identify two characteristics of a successful entrepreneur. Characteristic 1: Characteristic 2: Identify and explain two advantages to Camille of employing part-time workers. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two problems for Camille of using on-the-job training. Problem 1: Explanation: Problem 2: Explanation: Camille thinks that her laissez-faire leadership style will have to change as her business grows. Do you agree? Justify your answer.

0450_s15_qp_13

THEORY

2015

Paper 1, Variant 3

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Meena wants to leave her job as a teacher to become a successful entrepreneur. Her business will produce handmade jewellery. Meena knows that there is government support for business start-ups. She plans to use market research to help identify a market segment for her jewellery. Meena’s brother has offered to become her business partner but she cannot decide whether it would be better to operate as a sole trader. Identify two ways a government might support business start-ups. Way 1: Way 2: Identify two ways a market can be segmented. Way 1: Way 2: Outline two characteristics Meena will need to become a successful entrepreneur. Characteristic 1: Characteristic 2: 1 10 Explain one advantage and one disadvantage to Meena of operating as a sole trader rather than being in a partnership. Advantage: Explanation: Disadvantage: Explanation: Do you think accessing government sources, such as statistics, is the best method of market research for a start-up business to use? Justify your answer. 1 10

0450_s23_qp_13

THEORY

2023

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Nicky wants to be a successful entrepreneur. She plans to start up a travel business specialising in walking holidays. Nicky will be operating in a niche market. She is preparing a business plan to help with her decision-making. Nicky has been told government support is available for business start-ups. She knows building customer relationships will be important. Identify two reasons why a government might support business start-ups. Reason 1: Reason 2: Identify two ways a business can build customer relationships. Way 1: Way 2: Outline one benefit and one limitation to Nicky’s business of operating in a niche market. Benefit: Limitation: Explain one way each of the following sections in the business plan might be helpful to Nicky. Business objectives: Explanation: Data about the market: Explanation: Explain two characteristics of a successful entrepreneur. Which characteristic is likely to be the most important? Justify your answer. ,

  
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0450_s24_qp_12

THEORY

2024

Paper 1, Variant 2

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Desmond wants to be a successful entrepreneur. He has decided to leave his office job to start up a gardening business cutting grass and planting flowers. It will be an unincorporated business. Desmond is aware that a new business is at greater risk of failure than an established business. He has identified his business objectives for the first year. Desmond has calculated he will need $750 for his start-up capital. Define ‘unincorporated business’. Identify two objectives a new business might have. Objective 1: Objective 2: Identify four characteristics of a successful entrepreneur. Characteristic 1: Characteristic 2: Characteristic 3: Characteristic 4: 1 12 Explain two reasons (other than lack of finance) why Desmond’s new business might be at greater risk of failure than an established business. Reason 1: Explanation: Reason 2: Explanation: Do you think owner’s savings are the most suitable source of finance for a start-up business? Justify your answer. [ 1 12

0450_w23_qp_11

THEORY

2023

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Ramon is an entrepreneur. He plans to start up a home tutoring service to provide students with extra help to learn maths. Ramon is considering buying a franchise. He has prepared a business plan but is concerned about how an increase in the rate of inflation might affect his business. Ramon wants to know whether crowdfunding is the best source of finance for a start-up business to use. Define ‘inflation’. Identify two characteristics of a successful entrepreneur. Characteristic 1: Characteristic 2: Outline two ways a business plan might help Ramon. Way 1: Way 2: Explain one advantage and one disadvantage to Ramon of buying a franchise. Advantage: Explanation: Disadvantage: Explanation: Do you think crowdfunding is the best source of finance for a start-up business to use? Justify your answer.

0450_w24_qp_13

THEORY

2024

Paper 1, Variant 3

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Kate is an entrepreneur. Two years ago she left her job as a fashion designer at a multinational company. She started up BBB, a women’s sportswear clothing business. BBB targets a market segment of high income consumers. BBB’s products are sold in 3 retail shops and also through its website. Kate said: ‘I saw a gap in the market and took the risk. Obtaining the finance I needed from the bank was not easy. I enjoy making decisions such as using leaflets to promote the clothes.’ BBB’s revenue target for next year is $500000. What is meant by ‘entrepreneur’? Identify two reasons why obtaining finance may not be easy for a new business. Reason 1: Reason 2: Identify and explain two possible reasons why Kate decided to start up her own business. Reason 1: Explanation: Reason 2: Explanation: 1 9 Identify and explain two reasons why segmenting the market might help BBB. Reason 1: Explanation: Reason 2: Explanation: Do you think that using leaflets is the best way for Kate to promote her products? Justify your answer. [ 1 9

0450_s19_qp_11

THEORY

2019

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Kala always wanted to be an entrepreneur. She used to work for a business which downsized its workforce 5 years ago. She then decided to start up CHL. She produced a business plan which helped her obtain finance. Kala now designs customised sports clothes for women. Kala sells these products directly to customers using e-commerce. She has a loyal customer base of 25-40 year olds. However, Kala is worried about increased competition in this niche market. One idea she has is to target different market segments. Define ‘business plan’. Identify two reasons why a business might downsize its workforce. Reason 1: Reason 2: Outline two reasons why Kala’s business might need finance. Reason 1: Reason 2: 1 13 Explain one advantage and one disadvantage to Kala of using e-commerce to sell her products. Advantage: Explanation: Disadvantage: Explanation: Do you think selling to different market segments is the best way for a small business to respond to increased competition? Justify your answer. [ 1 13

0450_s20_qp_12

THEORY

2020

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Nadia started her successful hairdressing business 4 years ago. Maintaining quality has always been important to Nadia. She said: ‘I started with no experience of business plans, recruitment, cash flow or profit. I did not understand how economic issues such as inflation could affect a business. Now I have 5 hairdressing shops and 20 employees. Last year I made a profit of $100000.’ Nadia is planning to expand her business. One way she could do this is by selling franchises. Define ‘business plan’. Identify two stages in the recruitment process. Stage 1: Stage 2: Outline one advantage and one disadvantage to Nadia’s business of selling franchises to expand. Advantage: Disadvantage: 1 12 Explain two possible effects of an increase in the rate of inflation on Nadia’s business. Effect 1: Effect 2: Do you think making a profit is more important for a growing business than managing cash flow? Justify your answer. [ 1 12

0450_s21_qp_13

THEORY

2021

Paper 1, Variant 3

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Tom wants to leave his job to become an entrepreneur. He and his sister plan to start a window cleaning business. Tom has been told that new businesses are at a greater risk of failure than established businesses. Tom has to decide whether a partnership is a suitable form of business organisation for the new business. He has calculated the business will need $700 as start-up capital. Tom knows that every decision he makes will have an opportunity cost. Define ‘entrepreneur’. Define ‘opportunity cost’. Identify four reasons why a new business might be at greater risk of failure than an established business. Reason 1: Reason 2: Reason 3: Reason 4: 1 17 Explain two suitable sources of start-up capital Tom’s business might use. Source 1: Explanation: Source 2: Explanation: Do you think a partnership is the best form of business organisation for a new business? Justify your answer. 1 17

0450_s22_qp_12

THEORY

2022

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Gloria is a sole trader. Her business provides house-cleaning services. Gloria uses telephone calls to communicate with her 4 employees. She wants to expand the business by offering a repair service. Gloria plans to carry out some market research. She has been told producing a business plan can help to reduce risk. Gloria would also like to reduce her workload and is considering taking on a business partner. Identify two ways a business plan can help a business to reduce risk. Way 1: Way 2: Identify two possible reasons why a business might want to expand. Reason 1: Reason 2: Outline one advantage and one disadvantage to Gloria of using telephone calls as a method of communication with her employees. Advantage: Disadvantage: [ 1 15 Explain two factors Gloria should consider when deciding whether to take on a business partner. Factor 1: Explanation: Factor 2: Explanation: Explain two methods of primary market research a business could use to find out the demand for a new product or service. Which would be the best method to use? Justify your answer. 1 15

0450_s23_qp_12

THEORY

2023

Paper 1, Variant 2

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