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6.1 State FOUR factors an entrepreneur must consider when choosing a suitable product for small-scale production - NSC Consumer Studies - Question 6 - 2016 - Paper 1
Question 6
6.1 State FOUR factors an entrepreneur must consider when choosing a suitable product for small-scale production. 6.2 Give ONE example of EACH of the following type... show full transcript
Worked Solution & Example Answer:6.1 State FOUR factors an entrepreneur must consider when choosing a suitable product for small-scale production - NSC Consumer Studies - Question 6 - 2016 - Paper 1
Step 1
State FOUR factors an entrepreneur must consider when choosing a suitable product for small-scale production.
Answer
- Availability of human skills: Essential to ensure that the entrepreneur has the required skills or can acquire them for production.
- Availability of financial resources: Necessary to cover start-up costs and operational expenses.
- Available raw materials: The entrepreneur must ensure that raw materials for production are readily available to avoid delays.
- Consumer appeal: The target market must be defined and the product must appeal to them.
Step 2
Step 3
Step 4
State the purpose of a financial feasibility study.
Answer
The purpose of a financial feasibility study is to discover the strengths and weaknesses of an existing business or potential venture. It assesses whether the business will be successful and evaluates the financial viability of the project.
Step 5
Give reasons why it is important for a business to calculate the production cost and selling price of products accurately for sustainable profitability.
Answer
- Accurate calculation helps to establish a realistic price point that can stimulate sales and attract customers.
- It ensures the business remains profitable by preventing underpricing, which can lead to unsustainable operations.
Step 6
How does Nelly ensure that the design of the packaging for the hair bands is appealing to consumers?
Answer
Nelly ensures the design of the packaging is appealing by:
- Using coloured paper and buttons to decorate the envelopes, making them attractive.
- Reusing materials which not only reduces costs but also adds a unique charm to the packaging.
Step 7
Step 8
Discuss TWO advantages of the distribution method that Nelly uses to sell her product.
Answer
- There is no middleman, which means Nelly retains a larger portion of the profit from each sale.
- Nelly has a direct interaction with customers, allowing her to build relationships and understand their needs better.