Gloria is a sole trader. Her business provides house-cleaning services. Gloria uses telephone calls to communicate with her 4 employees. She wants to expand the business by offering a repair service. Gloria plans to carry out some market research. She has been told producing a business plan can help to reduce risk. Gloria would also like to reduce her workload and is considering taking on a business partner.

1. (a)Identify two ways a business plan can help a business to reduce risk. Way 1: Way 2:[2]
2. (b)Identify two possible reasons why a business might want to expand. Reason 1: Reason 2:[2]
3. (c)Outline one advantage and one disadvantage to Gloria of using telephone calls as a method of communication with her employees. Advantage: Disadvantage:[4]
4. (d)Explain two factors Gloria should consider when deciding whether to take on a business partner. Factor 1: Explanation: Factor 2: Explanation:[6]
5. (e)Explain two methods of primary market research a business could use to find out the demand for a new product or service. Which would be the best method to use? Justify your answer.[6]