Which one of the following best describes the purpose of Priya's new mobile bicycle-repair business? Priya visits customers at home, charges for repairs and...
Question 1 Report
Which one of the following best describes the purpose of Priya's new mobile bicycle-repair business? Priya visits customers at home, charges for repairs and hopes to make enough profit to expand her service next year. She also wants cyclists to keep using their bikes rather than replacing them.
(a) Which objective is most directly linked to Priya charging customers for repairs? [1]
(b) Identify one benefit to customers of Priya's business. [1]
(c) Explain one reason why Priya may want to expand the business. [1]
Answer Details
(a) Charging customers for repairs is directly linked to making profit, or profit maximisation. Revenue from customers needs to exceed costs for profit to be made. [1]
(b) Customers receive convenient repairs at home. Repairing a bicycle rather than replacing it, and saving customer time, would also be valid benefits. [1]
(c) Priya may expand to serve more customers and increase sales or profit. [1]
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