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. Explain one advantage and one disadvantage to Ramon of buying a franchise. Advantage: ................................................................................................................... ....................................................................................................................................... Explanation: .................................................................................................................. ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... Disadvantage: ............................................................................................................... ....................................................................................................................................... Explanation: .................................................................................................................. ....................................................................................................................................... ....................................................................................................................................... .......................................................................................................................................

Business

IGCSE&ALevel

CAIE

Exam No：0450_w24_qp_13 Year：2024 Question No：2(d)

Answer:

Knowledge points:

6.1.1.1 the advantages and disadvantages of privatisation in a given situation

6.1.1.2 the advantages and disadvantages of nationalisation in a given situation

6.1.1.3 how a government might use the law to seek to control: employment practices, conditions of work (including health and safety), wage levels, marketing behaviour, competition, location decisions, particular goods and services

6.1.1.4 the impact of changes in political and legal factors on business and business decisions

6.1.2.1 how government might intervene to help businesses and encourage enterprise

6.1.2.2 how government might intervene to constrain business activity

6.1.2.3 how government might deal with market failure

6.1.2.4 the key macroeconomic objectives of governments: low unemployment, low inflation, economic growth

6.1.2.5 how macroeconomic objectives and performance of an economy can have an impact on business activity

6.1.2.6 government policies used to achieve macroeconomic objectives: monetary, fiscal, supply-side and exchange rate policies

6.1.2.7 the impact of changes in these government policies on business and business decisions

6.1.3.1 the impact of and issues associated with corporate social responsibility (CSR), e.g. accounting practices, paying incentives for the award of contracts, social auditing

6.1.3.2 why businesses need to consider the needs of the community including pressure groups

6.1.3.3 demographic changes at a local, national and global level

6.1.3.4 the impact of social and demographic change on business and business decisions

6.1.4.1 the impact of technological change on business and business decisions

6.1.5.1 the impact of competitors and suppliers on business and business decisions

6.1.6.1 the importance of international trading links and their impact on business and business decisions

6.1.6.2 how international trade agreements might have an impact on businesses

6.1.6.3 the role of technology in international trade

6.1.6.4 the advantages and disadvantages that a multinational might bring to a country

6.1.6.5 relationships between multinationals and governments

6.1.7.1 how physical environmental issues might influence business behaviour

6.1.7.2 how a business and its stakeholders may use an environmental audit

6.1.7.3 the impact of the growing importance of sustainability on business and business decisions

Answer:

Knowledge points:

Solution:

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