SACTIVITY EXAM PRACTICE 125 AM PRACTICE: 1 BUSINESS ACTIVITY AND INFLUENCES ON BUSINESS Ismail Omar, a sole trader, owns a retail outlet in a shopping mall in Bahrain. He sells jewellery that he imports from overseas. In 2014, the business was struggling to survive owing to strong competition from other retailers inside the mall. However, one of his main rivals closed down in 2015 and now his business is increasing its sales. State one non-financial aim of a business. (1) A02 A02 b State one way of measuring the success of a business. A01 A01 d A01 e (1) 云仓市 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. CAL THINKING A02 f Justify which one of these two options Ismail should choose. EM SOL A03 ON MAKING VITY TION A04 (9) Total marks for this question = 20

SACTIVITY EXAM PRACTICE 125 AM PRACTICE: 1 BUSINESS ACTIVITY AND INFLUENCES ON BUSINESS Ismail Omar, a sole trader, owns a retail outlet in a shopping mall in Bahrain. He sells jewellery that he imports from overseas. In 2014, the business was struggling to survive owing to strong competition from other retailers inside the mall. However, one of his main rivals closed down in 2015 and now his business is increasing its sales. State one non-financial aim of a business. (1) A02 A02 b State one way of measuring the success of a business. A01 A01 d A01 e (1) 云仓市 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. CAL THINKING A02 f Justify which one of these two options Ismail should choose. EM SOL A03 ON MAKING VITY TION A04 (9) Total marks for this question = 20