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Using Item A, explain one disadvantage to Ellie of using money borrowed from her parents to set up Swifty Services - AQA - GCSE Business - Question 2 - 2021 - Paper 1
Question 2
Using Item A, explain one disadvantage to Ellie of using money borrowed from her parents to set up Swifty Services. Ellie is the owner of Swifty Services. She alway... show full transcript
Worked Solution & Example Answer:Using Item A, explain one disadvantage to Ellie of using money borrowed from her parents to set up Swifty Services - AQA - GCSE Business - Question 2 - 2021 - Paper 1
Step 1
Explain one disadvantage to Ellie of using money borrowed from her parents to set up Swifty Services.
Answer
One disadvantage of Ellie borrowing money from her parents is that it can lead to a loss of decision-making autonomy. Since her parents now have a financial stake in her business, they may feel entitled to influence her decisions, particularly as they are concerned about the urgency and security of their repayments.
This could create pressure on Ellie, making her decisions more about fulfilling her parents' expectations rather than pursuing her own business vision. For instance, if they demand a specific repayment amount or timeline, Ellie might be forced to accept additional work (like gardening services) even if that wasn’t her initial plan. Consequently, this relationship dynamic could detract from her original aspiration of being her own boss.