Which one of these business aims is most suitable for a start-up app that helps independent restaurants manage food deliveries? The founders have limited fi...
Question 1 Report
Which one of these business aims is most suitable for a start-up app that helps independent restaurants manage food deliveries? The founders have limited finance, no established customers and strong competition from large technology businesses. They expect to make a loss while testing the app with ten restaurants.
(a) Which aim is most suitable in the first year? [1]
A Survival
B Market dominance in every country
C Closing the business
D Maximising dividends to shareholders
(b) Explain one objective that would support this aim. [2]
(c) Identify one source of finance that could help the founders survive the first year. [1]
(d) Explain one reason why an objective to gain ten restaurant clients may be more realistic than gaining 10 000. [2]
Answer Details
(a) Survival is the most suitable first-year aim. The start-up has limited finance, no established customers, strong competition, and expects an initial loss, so remaining in business is the immediate priority. [1]
(b) A suitable supporting objective is to maintain enough cash to pay monthly costs, or to gain ten paying restaurant clients by a stated date. [1] This helps the business continue operating while it develops its customer base. [1]
(c) Owner's savings, a bank loan, an overdraft, or venture capital could help finance survival in the first year. [1]
(d) Ten clients is more realistic because it better matches the start-up's limited finance, staff, and experience. [1] A realistic objective is more likely to be achieved and to motivate employees than an unachievable target of 10 000 clients. [1]
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