Business 2023 · May/June · Paper 22

(i) Identify one quality an entrepreneur needs for success.

Explain the term opportunity cost.

(i) Refer to Table 1.1. Calculate the forecast closing balance for August 2023.

Explain one factor that will influence Markus' choice of a source of finance.

Analyse two benefits to OFD of offering induction training to all employees.

Evaluate whether Markus needs accurate cost information before setting up OFD. [12] 2 MX Bikes (MXB) MXB is a successful public limited company with many stakeholders. It has been trading for 15 years. It makes a range of bicycles and is currently the market leader for mountain bikes in country J. MXB's high-quality mountain bikes are sold at a high price to high-income leisure users. They are sold in a limited number of specialist bicycle shops. Fig. 2.1 shows the annual revenue of mountain bike manufacturers in country J for 2022. MXB JW AB PE LK Manufacturer JT SBOther Sales revenue ($000) Fig. 2.1 Annual revenue of mountain bike manufacturers in country J for 2022 To grow the business and improve the sustainability of operations, MXB expanded its product portfolio by launching a range of electric scooters. This is a new and expanding market in country J, targeting the urban youth market. MXB's business objectives are reviewed regularly by Rani, the Managing Director. Rani is concerned that MXB's sales of mountain bikes have declined by 12% over the past year. Demand for mountain bikes in country J has remained static. She has asked the Marketing Director to recommend extension strategies to increase MXB's market share.

(i) Identify one stakeholder of a business.

Explain the term sustainability.

(i) Refer to Fig. 2.1. Calculate MXB's market share of the mountain bike market in country J.

Explain one reason why MXB's objectives may change.

Analyse one advantage and one disadvantage to MXB of growing by launching a new product range of electric scooters.

Evaluate how MXB can change its marketing mix to extend the product life cycle of its range of mountain bikes. [12] Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.