Lines Of Analysis Extra

Question 1

Setting up business most important role

Answer 1

Creating and setting up a business is the most important role.

Give example of how entrepreneur set up business

Entrepreneur able to establish business in market

Without this role, business would not exist

Question 2

Expanding business most important role

Answer 2

Expanding business most important role of entrepreneur

Give example of how entrepreneur expands the business

Entrepreneur can increase capacity

Increase output

Achieve economies of scale(choose appropriately)

Lower unit cost

Reduce selling price or increase profit margin

Question 3

Creativity most important role

Answer 3

Creativity is one important characteristic of an entrepreneur

This will help them to innovate and come up with unique product ideas

Differentiate them from competitors

Build a strong brand

More loyal customers

Price inelastic

Increase prices without a significant fall in demand

Increase in revenue

Increase in gross profit margin

Increase in retained profit to reinvest in…

Question 4

Increase in sales leads to…

Answer 4

An increase in sales

Increase in sales revenue

Increased gross profit

Increased operating profit

Increased net profit

Potential increase in dividend payments

Increased incentive to invest in the business

Attract more investment

Increased capital available for growth