Enterprise, business growth and size

1. (a) Identify two ways of measuring the size of a business. (2 Marks)

CIE 2021 Feb-March (Unit 3)

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(b) State two problems of using the number of employees to measure the size of a

business. (2 Marks) CIE 2020 May-June (Unit 3)

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(c) Identify two of the main sections of a business plan. (2 Marks)

CIE 2018 May-June (Unit 3)

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(d) Identify two possible reasons why the owners of a business may want it to
expand. (2 Marks) CIE 2017 Feb-March (Unit 3)

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Question Paper (Set A)
 Enterprise, business growth and size

2. Do you think being creative is the most important characteristic of being a successful
entrepreneur? Justify your answer. (6 Marks) CIE 2020 Oct-Nov (Unit 3)

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Question Paper (Set A)
 Enterprise, business growth and size

3. Yanis owns a busy restaurant in the city centre. He employs 4 skilled chefs and 6
workers to serve in the restaurant. All employees are on part-time contracts. The
chefs are paid a high hourly wage rate, but receive no bonuses. Yanis is worried that
too many chefs leave. He is thinking of other ways in which he could motivate the
chefs. Yanis wants to open another restaurant but is worried about problems linked
to growth. Identify two possible problems for Yanis if he expands his business.
Explain what he might do to overcome each problem. (6 Marks)
CIE 2017 Oct-Nov (Unit 3)

Problem 1

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Question Paper (Set A)
 Enterprise, business growth and size

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Question Paper (Set A)
 Enterprise, business growth and size

4. (a) Explain four ways a business plan can be useful. (8 Marks)

CIE 2020 Oct-Nov P2 (Unit 3)
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Question Paper (Set A)
 Enterprise, business growth and size

(b) George Brown had always wanted to be his own boss and set up City Café (CC)
as a sole trader 15 years ago. He purchased a building with $10 000 he received
from his grandfather and made it into a café. The café is located in a very busy
shopping mall. It is already open every day from 08:00 to 20:00 and in order to
serve more customers he needs a larger café. He now wants to increase the
profit from CC by expanding the café. George is considering two options for
expansion.
Option 1: Buy the building next door and make it into one larger café that can
serve 50% more customers.
The building became empty after a clothes shop closed. The cost of the shop is
$20 000 and it will cost $10 000 for redecorating and building work.
Option 2: Move to a new building 10 kilometres away in another part of the city.
This building is twice as large as the existing café and will cost $2 000 a year to
rent as it is not for sale. George will be allowed to redecorate and he will need to
buy equipment for the kitchen. The total cost for this will be $5 000. It is in a busy
part of the city with many shoppers visiting the area.
Consider the advantages and disadvantages of each of the two options for
expanding the business. Recommend which option George should choose.
Justify your answer. (12 Marks) CIE 2018 Feb-March P2 (Unit 3)
Option 1

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Option 2

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Question Paper (Set A)
 Enterprise, business growth and size

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Recommendation

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5. (a) TADS, a drumming school, is looking to expand by offering lessons in other

musical instruments. State one reason why this could lead to the business failure
of TADS. (1 Mark) Edexcel 2020 November (Unit 14)
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Question Paper (Set A)
 Enterprise, business growth and size

(b) The owners of Sawadee Restaurant want to judge the success of the restaurant
group. In order to do this, the owners are considering using the following two
options.

Option 1: Customer satisfaction.

Option 2: Profit.

Justify which one of these methods the owners should use. (9 Marks) Edexcel
2017 Sample Material (Unit 14)

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Question Paper (Set A)
 Enterprise, business growth and size

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Question Paper (Set A)