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6.1 Give THREE examples of start-up costs for a small business from home - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Question 6
6.1 Give THREE examples of start-up costs for a small business from home. 6.2 State THREE factors that influence the efficient production of quality products. 6.3 ... show full transcript
Worked Solution & Example Answer:6.1 Give THREE examples of start-up costs for a small business from home - NSC Consumer Studies - Question 6 - 2023 - Paper 1
Step 1
Give THREE examples of start-up costs for a small business from home.
Answer
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Electricity: This includes the utility costs associated with operating equipment and lighting in the business environment.
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Raw materials: The necessary ingredients needed to create the products, such as flour, sugar, and other baking essentials.
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License/registration costs: Fees required for legally establishing the business and adhering to local regulations.
Step 2
State THREE factors that influence the efficient production of quality products.
Answer
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Planning: Meticulous preparation to define objectives and organize resources efficiently.
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Quality control: Regular checks to ensure products meet predefined quality standards.
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Adhering to specifications: Following specific guidelines is crucial for consistent product quality.
Step 3
Give reasons for conducting a financial feasibility study.
Answer
Conducting a financial feasibility study is vital to determine whether the business can be successful. It helps in assessing potential costs, expected returns, and the overall viability of the business model. It also identifies the necessary funding and potential revenue sources.
Step 4
Give THREE characteristics of eco-friendly packaging materials.
Answer
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Biodegradable: Designed to decompose naturally, minimizing environmental impact.
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Recyclable: Can be reprocessed into new products, reducing waste.
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Low carbon footprint: Made with processes that produce less greenhouse gas emissions.
Step 5
Explain the advantages of using local raw materials for a small-scale business.
Answer
Using local raw materials fosters strong community relationships, reduces transport costs, and can often be cheaper. Additionally, it stimulates the local economy and promotes sustainability by decreasing the ecological impact of transportation.
Step 6
Explain why it is important for a business to handle customer queries or complaints immediately.
Answer
Prompt responses to customer inquiries enhance customer loyalty and satisfaction. It allows the business to swiftly address issues, improve its products or services, and adapt based on customer feedback. This proactive approach can lead to increased sales and a stronger reputation.
Step 7
List the information that must be included on the package label of the baked products.
Answer
- Name of the product
- Name of manufacturer
- Trade name/mark/logo/emblems
- Address/details of manufacturer
- Country of origin
- Ingredients
- Storage instructions
- Nutritional information
- Weight/volume/quantity/size
- Allergens
Step 8
Step 9
Explain why it is important for Bakers Creationz to conduct regular maintenance of its second-hand equipment.
Answer
Regular maintenance is crucial as it prevents breakdowns during production, ensuring uninterrupted operations. It saves money by prolonging equipment lifespan and prevents accidents that may occur due to faulty machinery.
Step 10
Step 11
Step 12
Analyze the validity of the statement above.
Answer
Bakers Creationz's claim of having no cash flow challenges since 2012 may be valid if managed well, but it should also be evaluated against the context and potential fluctuations in the baking industry, economic conditions, and the overall business strategy.