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Terry
0450-19-F-M-12-1e
Chan
TOPIC QUESTION - PAPER 1
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Chan
June 16, 2021 at 10:37:32 PM
Feb/Mar 2019
Version 2
1.0 Understanding Business Activity
1.3 Enterprise, Business Growth and Size
YOUR ANSWER
Moving to a larger shop will increase the size of Anna and James’s business. But as customers dislikes long queues and poor customer service, Anna and James would have to hire more part-time employees, increasing cost. However, a larger shop will increase revenue of the business as more ice-cream can be sold. As such, Anna and James should move to a larger shop, as they would be able to increase revenue and use the revenue to hire more employees.
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