INFLUENCES ON BUSI Ismail Omar, a sole trader, owns a retail outlet in a shopping mall in Bahrain. He sells jewellery competition from other retailers inside the mall. However, one of his main rivals closed down in that he imports from overseas. In 2014, the business was struggling to survive owing to strong 2015 and now his business is increasing its sales. A02 a A02 b A01 C A01 d A01 A02 A03 ㄖˋ A04 e State one non-financial aim of a business. State one way of measuring the success of a business. (1) (1) Explain one way in which a fall in the exchange rate might affect a business. (3) Explain one disadvantage of operating as a sole trader. Ismail read in a newspaper that interest rates in Bahrain were likely to rise in 2017. (3) Explain one possible effect on a business of an increase in interest rates. (3) In 2017, Ismail was informed that his rent in the shopping mall would double. As a result of the news, Ismail was considering two options: Option 1: Move his shop to a Bahraini side street where rent is very cheap. Option 2: Cease trading from a shop and set up an online business selling jewellery. f Justify which one of these two options Ismail should choose. (9) Total marks for this question = 20
INFLUENCES ON BUSI Ismail Omar, a sole trader, owns a retail outlet in a shopping mall in Bahrain. He sells jewellery competition from other retailers inside the mall. However, one of his main rivals closed down in that he imports from overseas. In 2014, the business was struggling to survive owing to strong 2015 and now his business is increasing its sales. A02 a A02 b A01 C A01 d A01 A02 A03 ㄖˋ A04 e State one non-financial aim of a business. State one way of measuring the success of a business. (1) (1) Explain one way in which a fall in the exchange rate might affect a business. (3) Explain one disadvantage of operating as a sole trader. Ismail read in a newspaper that interest rates in Bahrain were likely to rise in 2017. (3) Explain one possible effect on a business of an increase in interest rates. (3) In 2017, Ismail was informed that his rent in the shopping mall would double. As a result of the news, Ismail was considering two options: Option 1: Move his shop to a Bahraini side street where rent is very cheap. Option 2: Cease trading from a shop and set up an online business selling jewellery. f Justify which one of these two options Ismail should choose. (9) Total marks for this question = 20
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:INFLUENCES ON BUSI
Ismail Omar, a sole trader, owns a retail outlet in a shopping mall in Bahrain. He sells jewellery
competition from other retailers inside the mall. However, one of his main rivals closed down in
that he imports from overseas. In 2014, the business was struggling to survive owing to strong
2015 and now his business is increasing its sales.
A02 a
A02
b
A01
C
A01
d
A01
A02
A03
ㄖˋ
A04
e
State one non-financial aim of a business.
State one way of measuring the success of a business.
(1)
(1)
Explain one way in which a fall in the exchange rate might affect a business. (3)
Explain one disadvantage of operating as a sole trader.
Ismail read in a newspaper that interest rates in Bahrain were likely to rise
in 2017.
(3)
Explain one possible effect on a business of an increase in interest rates. (3)
In 2017, Ismail was informed that his rent in the shopping mall would double.
As a result of the news, Ismail was considering two options:
Option 1: Move his shop to a Bahraini side street where rent is very cheap.
Option 2: Cease trading from a shop and set up an online business selling
jewellery.
f Justify which one of these two options Ismail should choose.
(9)
Total marks for this question = 20
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