Business in the real world

Which of the following characteristics of an entrepreneur is the ability to develop new ideas/products?

Enterprise is one of the four factors of production. Which of the following is a definition of enterprise?

Explain one method a business may use to expand.

Explain one benefit to shareholders of limited liability.

Read Item A in the case study. Explain one reason why the objectives of a business may change over time.

Jameel would have three months to make the 100 toys for the local toy shop.\n\nRecommend whether Jameel should create a business plan before making a decision about accepting the order. Give reasons for your recommendation.

Read Item C and Table 1. Using Item C, explain one benefit to Eve of being a sole trader.

Using data from Table 2, describe how the information indicates STC has experienced growth.

Using Table 2, explain one benefit to STC of its growth.

Which of the following types of business ownership has shareholders, but cannot advertise its shares to the general public?

Shareholders have a key objective of profit. Explain one reason why this might cause conflict with a different stakeholder group.

Explain one problem a business might face when producing an effective business plan.

**Item A: One Day Photography** Debbie Day set up One Day Photography (ODP) after completing a photography course at a local College. ODP offers wedding photography and family photography. Her previous job had been in a supermarket, working full time from 10am to 6pm on minimum wage. This made it difficult to spend time with her family. To ensure she is available to pick her children up from school, Debbie would prefer not to travel more than an hour from her home for work. Debbie already owned some camera equipment and decided to run the business from home. This meant she was able to set up the business quickly. Last year Debbie made enough profit to help her buy a new car, something she could not afford in her previous job. Debbie has recently set up a social media account to promote ODP and show potential customers her photos. Many of her previous customers have started leaving reviews and the messenger function has been a great way to answer questions, although people do expect a quick response. A lot of people have 'liked' Debbie's social media posts and photos; however, she is unsure how many have gone on to make a booking. Describe what is meant by the term 'entrepreneur'.

Debbie previously worked full time from 10am to 6pm in a supermarket. Analyse one benefit to Debbie of operating ODP as a sole trader.

**Item C: Emilios** Emilios is an ice cream shop located in St Ives in Cornwall. St Ives is a very popular town for tourists, especially in the summer. Customer satisfaction is an important objective for Emilios. The ice cream is made on site and there are over 40 flavours. Emilios ice cream cones are produced by Cornets Ltd. Cornets Ltd used to sell directly to 50 different ice cream shops across Cornwall, delivering on average 1000 cones a week to each shop. It now sells to a large wholesaler with hundreds of customers. Emilios has an ice cream 'flavour of the day'. One employee stands outside the shop for most of the day promoting this flavour by offering a free sample to people passing by. The ice cream samples are very popular and need replacing regularly. The free samples encourage tourists to enter the shop, however some customers have complained about the time they spend waiting to be served once inside. Explain one way a business might measure its success, other than profit.