O-LevelCommerceBusiness enterprise7100/12 · Oct/Nov 2024 · Q331 Mark

A study found that the rate of business failure in the first year is much higher for sole traders than for franchises. Which factor would explain this?

Afranchises attract more talented business people

Boperating as a franchise involves less risk

Csole traders are able to keep all profits

Dsole traders have a limited amount of capital to invest

✓ Correct answer

B: operating as a franchise involves less risk

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Topic: Business enterprise, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2024 Paper 1 Variant 2, question 33.

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