Rachel's business produces and sells chocolate bars. Quality is important. Rachel is a sole trader who received government support when she started up her business. The business operates in a competitive market. Rachel is considering ways to increase sales of her best-selling product. She is also planning to introduce a new chocolate bar. Rachel knows deciding which pricing method to use for a new product is important. Identify two ways a government can support business start-ups. Way 1 : Way 2 : .......................................................................................................................................

Business

IGCSE&ALevel

CAIE

Exam No：0450_m25_qp_12 Year：2025 Question No：2(b)

Answer:

Award 1 mark for each relevant way [max 2].
Points might include:
- Providing (low cost) loans / low interest rates
- Providing grants
- Low-cost rent
- Lower tax / tax relief
- Providing training
- Providing advice / research / marketing data
- Providing mentors

Other appropriate responses should be credited.

Knowledge points:

1.3.1.1. Characteristics of successful entrepreneurs

1.3.1.2. Contents of a business plan and how business plans assist entrepreneurs

1.3.1.3. Why and how governments support business start-ups, e.g. grants, training schemes

1.3.2.1. Methods of measuring business size, e.g. number of people employed, value of output, capital employed (profit is not a method of measuring business size)

1.3.2.2. Limitations of methods of measuring business size

1.3.3.1. Why the owners of a business may want to expand the business

1.3.3.2. Different ways in which businesses can grow, e.g. internal/external

1.3.3.3. Problems linked to business growth and how these might be overcome

1.3.3.4. Why some businesses remain small

1.3.4.1. Causes of business failure, e.g. lack of management skills, changes in the business environment, liquidity problems

Answer:

Knowledge points:

Solution:

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