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Transcribed Image Text: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
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