Business Test 1

Name: _________________________ Grade: __________ Batch: ____________ Date: ______________
Tandeep Toys (TT)
Tandeep is planning to set up a toy shop in country Z. He worked for a toy manufacturer for 10 years. Tandeep
thinks he has enough knowledge of toys and customer needs to start his own business. Tandeep plans to sell a
large range of toys which will include products for all ages of children from babies through to teenagers. The toys
will all be well known brands and aimed at higher income groups. The most popular product is likely to be toy cars.
Tandeep also plans to sell a range of accessories for babies such as pushchairs (strollers) which he may have to
import. Making sure there is inventory to always meet demand is very important to the success of TT. Tandeep has
a loan of $40 000 from his family to invest in the business. He wants to set up as a private limited company. He
knows that he will need working capital to run his business. He may offer credit to some customers for more
expensive items such as nursery furniture. Tandeep knows that there are several legal controls to protect
consumers. Tandeep has been looking at locations for his toy shop. He has identified two locations to choose
between as outlined in Appendix 1. Tandeep will need to recruit several employees to work in his shop. He plans to
recruit a shop manager and 5 sales assistants. Tandeep will carry out all the administration. As part of the
recruitment process he will need to produce job descriptions, job specifications and then shortlist applicants.
Appendix 1
Two possible locations for Tandeep’s shop
Location A
The shop is located in a popular shopping mall in the city centre. Parking is expensive and the rent is
high. The mall is open from 8.00 to 22.00 every day. There are several other toy shops located in the
mall as well as banks, a cinema and children’s playground.
Location B
The shop is located on a busy street in a local town. There are many other shops and a street market in
the area. Local people frequently visit the shopping area to buy food. Parking is always available and is
free. The rent is low. There are no other toy shops in the town.
(a) Explain two advantages and two disadvantages of setting up a business as a private limited
company.
Advantage
1: .................................................................................................................... ..................................
......................................................................................................... .................................................
.......................................................................................... ................................................................
........................................................................... Advantage
2: .................................................................................................................... ..................................
......................................................................................................... .................................................
.......................................................................................... ................................................................
........................................................................... Disadvantage
1: ................................................................................................................ ......................................
..................................................................................................... .....................................................
...................................................................................... ....................................................................
....................................................................... Disadvantage
2: ................................................................................................................ ......................................
..................................................................................................... .....................................................
Page |1
Name: _________________________ Grade: __________ Batch: ____________ Date: ______________
...................................................................................... ....................................................................
....................................................................... [8]
(b) Consider the following three factors that affect the location of TT’s shop. Which of the locations
in Appendix 1 should Tandeep choose? Justify your answer.
• Customers in the area
• Rent
• Types of shops nearby
Customers in the
area: ..................................................................................................... ............................................
............................................................................................... ...........................................................
................................................................................ ..........................................................................
................................................................. .........................................................................................
.................................................. ........................................................................................................
...................................
Rent: ................................................................................................................................. ................
........................................................................................................................... ...............................
............................................................................................................ ..............................................
............................................................................................. .............................................................
.............................................................................. ............................................................................
...............................................................
Types of shops
nearby: .................................................................................................... .........................................
.................................................................................................. ........................................................
................................................................................... .......................................................................
.................................................................... ......................................................................................
..................................................... .....................................................................................................
......................................
Conclusion: ....................................................................................................................... ................
........................................................................................................................... ...............................
............................................................................................................ ..............................................
............................................................................................. .............................................................
.............................................................................. ............................................................................
.................................................................. [12]
Page |2

Business Test 1

Uploaded by

Copyright:

Available Formats

Business Test 1

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Test 1

Uploaded by

Copyright:

Available Formats

Name: _________ Grade: Batch: Date:

Tandeep Toys (TT)

Two possible locations for Tandeep’s shop

You might also like