School / Cambridge IGCSE / 0450 / Enterprise and planning Practice set under review
Enterprise and planning Business objectives, risk and growth methods for Papers 1 and 2.
Business Studies Enterprise and planning
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1 A new business sets the objective 'to increase annual revenue by 10% within two years'. This is best described as: A A mission statement B A stakeholder C A SMART objective D A diseconomy of scale ✓ Reviewed Paper 1 style Easy 1 marks No calculator + 2 Explain one reason why an entrepreneur starting a new business faces risk. ✓ Reviewed Paper 1 style Easy 2 marks No calculator + 3 Explain one benefit and one drawback to a business owner of writing a business plan before starting up. ✓ Reviewed Paper 1 style Easy 2 marks No calculator + 4 Which is an example of an internal economy of scale for a large manufacturer? A Paying a higher price per tonne of raw material B Bulk-buying raw materials at a lower price per unit C Losing communication efficiency between departments D Higher average distribution cost per unit ✓ Reviewed Paper 1 style Easy 1 marks No calculator + 5 Explain one reason why a business might suffer a diseconomy of scale as it grows very large. ✓ Reviewed Paper 1 style Easy 2 marks No calculator + 6 A local coffee shop owner is considering becoming a franchisee of a national coffee brand instead of continuing independently. Explain one advantage and one disadvantage of this for the owner. ✓ Reviewed Paper 2 style Easy 2 marks No calculator + 7 A successful local bakery chain wants to grow. Analyse one advantage of growing organically (opening new branches itself) compared with growing by taking over a rival bakery. ✓ Reviewed Paper 2 style Easy 3 marks No calculator + 8 A small business owner has $50,000 saved. She can use it to expand her existing shop, or use it as a deposit to buy a franchise of a well-known brand in a new location. Recommend one option using two relevant factors. ✓ Reviewed Paper 2 style Easy 3 marks No calculator + 9 Discuss whether 'maximising profit' is likely to be the most important objective for a newly-established small business in its first year of trading. ✓ Reviewed Paper 2 style Medium 4 marks No calculator + Self-assessed 0 / 0
Set total 20
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