CAIE IGCSE Business Studies 1.3.1 enterprise and entrepreneurship

Award 1 mark for identification of each relevant way (max 2).

Award 1 mark for each relevant reference to this business (max 2).

Award 1 mark for each relevant explanation (max 2).

Points might include:

- Help get a bank loan/finance [k] for her book shop [app] as lender can see that the business is able to repay [an]

- Provide targets / sense of purpose / direction / focus [k] for her new business [app] as can see what she needs to do to achieve her aims [an]

- Help decision-making [k] such as whether to use e-commerce [app] so does not waste time/money on the wrong target market/products [an]

- Act as a checklist/way to monitor progress [k] for this entrepreneur [app]

- Help set budgets [k] to help calculate her margin of safety [app]

- Help organise resources / labour requirements / marketing strategy [k]

Other appropriate responses should also be credited.

To use words from the stem as application the reference must be appropriate (i.e. make sense) in relation to the point being made.

The following words are likely to be appropriate for this question:

- Book (shop)

- Market research

- Break-even chart/margin of safety

- (Suitable) location

- E-commerce

- New/start-up business

- Entrepreneur

Other appropriate examples in context can still be credited.