Sunil is a sole trader. He likes owning a small business. His shop sells low price raincoats. Sales vary throughout the year. The market for raincoats is competitive, but as Sunil makes a profit he doesn't think competition is a problem for his business. In order to protect consumers, the Government of Sunil's country has recently introduced new laws to protect consumers.

1. (a)What is meant by 'profit'?[2]
2. (b)Identify two factors which could affect demand for Sunil's products.[2]
3. (c)Identify and explain two reasons why profit is important to small businesses like Sunil's.[4]
4. (d)Identify and explain one way in which consumer protection laws might affect Sunil's business and one way consumer protection laws might affect his customers.[6]
5. (e)Do you think the advantages of owning a small business are greater than the disadvantages for Sunil? Justify your answer.[6]