CIE IGCSE Topical Past Paper 1

1.3 Enterprise, business growth and size

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045/12/M/J/2024

ADN is a food retailer. It has 5 shops and 300 full-time employees. All ADN’s employees receive off-the-job training. ADN has a tall hierarchical structure. Managers have a narrow span of control and all use an autocratic leadership style. ADN’s directors are planning to expand the business and cannot decide whether it is better for a business to use internal growth or external growth.

(e) Do you think it is better for a business to use internal growth or external growth when planning to expand? Justify your answer. [6]

045/12/M/J/2024

Nicky wants to be a successful entrepreneur. She plans to start up a travel business specialising in walking holidays. Nicky will be operating in a niche market. She is preparing a business plan to help with her decision-making. Nicky has been told government support is available for business start-ups. She knows building customer relationships will be important.

(a) Identify two reasons why a government might support business start-ups. [2]
Reason 1:
Reason 2:

(e) Explain two characteristics of a successful entrepreneur. Which characteristic is likely to be the most important? Justify your answer.[6]