Business Studies Mock Exam IGCSE TOPIC 1 Exam| Questions and Answers 100% Solved|
Latest Update Graded A+
Benefits of franchising for the franchisee - franchise business model has already been tried
and tested
- Costs can be significantly lower than starting a new business as market research and
promotions are done by the franchisor
- Franchisor provides ongoing support - eg. training, sales promotion, insurance cover,
budgeting, tax advice
Drawbacks of franchising for the franchisee - the costs - franchisees need to pay annual
royalty payments to the franchisor
- less flexibility and freedom
- business cannot be sold without prior agreement of franchisor
Benefits of franchising for the franchisor - franchisee is suitably selected and determined to
succeed
- franchisee may pay a large sum of money to buy franchise rights
- franchisor does not have to get involved in hiring store managers or overseeing the running of
the business
Drawbacks of franchising for the franchisor - selection and training process of franchisee is
quite long
- some franchisees run their business quite poorly
- the reputation of the business is not in direct control of the franchisor
Multinational (MNC) A large business operating in several countries
Examples of well-known MNCs Starbucks, McDonalds, Audi, Apple, Nike
, Benefit of MNC's for Shareholders Shareholders get lots of profit and share prices go up.
Benefit of MNC's for the Government MNCs generate wealth, taxes (income), and provide
employment.
Benefit of MNC's for Employees MNCs provide many job opportunities and train them with
new skills.
Benefit of MNC's for Managers MNCs provide lots of resources, finances and opportunities
for further promotion for managers.
Benefit of MNC's for Consumers MNCs provide people with a wider range of products and
services at good prices.
Drawbacks of MNC's for local communities MNCs create big competitions for local
businesses which means their sales decrease and the community loses its local culture and
appeal.
Factors of production he four categories of resources required for the production of goods
and services: LAND, LABOUR, CAPITAL, and ENTERPRISE.
Land Natural resources (eg. coal, oil, wood, a plot of land)
Labour Human resources (eg. skilled and unskilled labour)
Capital Man-made resources (eg. machinery, tools, equipment)
Latest Update Graded A+
Benefits of franchising for the franchisee - franchise business model has already been tried
and tested
- Costs can be significantly lower than starting a new business as market research and
promotions are done by the franchisor
- Franchisor provides ongoing support - eg. training, sales promotion, insurance cover,
budgeting, tax advice
Drawbacks of franchising for the franchisee - the costs - franchisees need to pay annual
royalty payments to the franchisor
- less flexibility and freedom
- business cannot be sold without prior agreement of franchisor
Benefits of franchising for the franchisor - franchisee is suitably selected and determined to
succeed
- franchisee may pay a large sum of money to buy franchise rights
- franchisor does not have to get involved in hiring store managers or overseeing the running of
the business
Drawbacks of franchising for the franchisor - selection and training process of franchisee is
quite long
- some franchisees run their business quite poorly
- the reputation of the business is not in direct control of the franchisor
Multinational (MNC) A large business operating in several countries
Examples of well-known MNCs Starbucks, McDonalds, Audi, Apple, Nike
, Benefit of MNC's for Shareholders Shareholders get lots of profit and share prices go up.
Benefit of MNC's for the Government MNCs generate wealth, taxes (income), and provide
employment.
Benefit of MNC's for Employees MNCs provide many job opportunities and train them with
new skills.
Benefit of MNC's for Managers MNCs provide lots of resources, finances and opportunities
for further promotion for managers.
Benefit of MNC's for Consumers MNCs provide people with a wider range of products and
services at good prices.
Drawbacks of MNC's for local communities MNCs create big competitions for local
businesses which means their sales decrease and the community loses its local culture and
appeal.
Factors of production he four categories of resources required for the production of goods
and services: LAND, LABOUR, CAPITAL, and ENTERPRISE.
Land Natural resources (eg. coal, oil, wood, a plot of land)
Labour Human resources (eg. skilled and unskilled labour)
Capital Man-made resources (eg. machinery, tools, equipment)
