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QP As Business

Gan and Arisa plan to start a business making printed t-shirts. Gan has $3,000 in savings and Arisa has $1,000 and experience as a shirt maker to invest. They have been offered to set up a franchise location for a clothing retail company, which would allow them to sell the company's clothes. This would provide benefits like a recognized brand name but also restrictions on product choice. Gan wants the business to focus on sustainability and workers' rights, while Arisa wants to prioritize higher profits. The success of a new business depends on both managerial decisions and external factors like luck.

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Shanavaz Asokachalil
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1K views3 pages

QP As Business

Gan and Arisa plan to start a business making printed t-shirts. Gan has $3,000 in savings and Arisa has $1,000 and experience as a shirt maker to invest. They have been offered to set up a franchise location for a clothing retail company, which would allow them to sell the company's clothes. This would provide benefits like a recognized brand name but also restrictions on product choice. Gan wants the business to focus on sustainability and workers' rights, while Arisa wants to prioritize higher profits. The success of a new business depends on both managerial decisions and external factors like luck.

Uploaded by

Shanavaz Asokachalil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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GEM INTERNATIONAL SCHOOL

1st CYCLE TEST AUGUST 2016


Grade: AS level/ Commerce
Roll No:

Marks: 25
BUSINESS STUDIES

Duration: 1 hour

Gan and Arisa plan to set up their own business making printed T-shirts. They know that they will
need resources before they can start production. Gan has savings of $3,000 and Arisa, who is an
experienced shirt-maker, has $1,000 to invest in the business.
1. Explain why Gan and Arisa can be termed entrepreneurs.

[3]
2. Gan and Arisa have been asked by a well-known clothing retail company if they would like to set
up another shop but as a franchise operation. They would have to sell the clothes supplied to
them by the retail company.
Explain two advantages and two disadvantages of this franchise offer to Gan and Arisa.

GIS Kannur/Cycle test-1@2016/AS level commerce/Business

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[8]
3. Gan wants to make the company more ethical: I want us to buy only cotton and other materials
that have been produced sustainably and I want our workers to have excellent conditions. Arisa
wanted to focus on achieving higher profits: We have put so much into this business it is time we
paid ourselves a higher income from profits.
To what extend do you think the success of new business is due to luck?

[4]
4. Identify two other stakeholder groups of G and A Clothing and explain what the companys
responsibilities are to them
.

GIS Kannur/Cycle test-1@2016/AS level commerce/Business

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[4]
5. Explain why business tries to take ethical decisions
.

`
.

[3]
6. SMART objective gives the company a right direction to future. Do you agree?
.

`
.

[3]

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GIS Kannur/Cycle test-1@2016/AS level commerce/Business

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