Month: July 2020

Lucy was fed up with having her smartphone stolen; four times in the last year! She used her design background to develop ‘NoPhoneTheft’, a lightweight but strong case which secured the phone within it. The design made it very difficult for anyone to steal a smartphone.

Lucy hoped that her invention would be of interest to mobile phone manufacturers. There were few similar products like this on the market.

Lucy needs to think creatively to produce ‘NoPhoneTheft’.

Why is thinking creatively important?

Select ONE answer:

1. avoids having to ask the ‘what if?’ question
2. increases the calculated risk
3. generates competitive advantage
4. avoids the need for lateral thinking

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy was fed up with having her smartphone stolen; four times in the last year! She used her design background to develop ‘NoPhoneTheft’, a lightweight but strong case which secured the phone within it. The design made it very difficult for anyone to steal a smartphone.

Lucy hoped that her invention would be of interest to mobile phone manufacturers. There were few similar products like this on the market.

Which ONE of the following best describes the term ‘invention’?

Select ONE answer:

1. Identifying new products and new ways of making products.
2. Identifying a gap in a market for a new product.
3. New business ideas which are profitable.
4. The process of transforming new ideas into products that can be sold.

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy is a driving instructor. Three years ago, she decided to set up on her own and researched being a sole trader or buying into a franchise. Lucy decided to become a sole trader. She operates in a highly competitive market.

Lucy provides her customers with a computer print-out record at the end of each lesson, which highlights where the learner needs to improve. She also charges a price lower than her rivals for each lesson.

Which ONE of the following would have been a possible advantage to Lucy if she had decided to buy into a franchise?

Select ONE answer:

1. She would not have to pay any tax.
2. Access to help and advice when running her business.
3. She would have no stakeholders.
4. Customer service would not be so important.

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy is a driving instructor. Three years ago, she decided to set up on her own and researched being a sole trader or buying into a franchise. Lucy decided to become a sole trader. She operates in a highly competitive market.

Lucy provides her customers with a computer print-out record at the end of each lesson, which highlights where the learner needs to improve. She also charges a price lower than her rivals for each lesson.

Which ONE of the following would have been a possible advantage to Lucy if she had decided to buy into a franchise?

Select ONE answer:

1. A recognised brand name.
2. She would not have to pay any tax.
3. She would have no stakeholders.
4. Customer service would not be so important.

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy is a driving instructor. Three years ago, she decided to set up on her own and researched being a sole trader or buying into a franchise. Lucy decided to become a sole trader. She operates in a highly competitive market.

Lucy provides her customers with a computer print-out record at the end of each lesson, which highlights where the learner needs to improve. She also charges a price lower than her rivals for each lesson.

Which ONE of the following methods is most likely to give Lucy a competitive advantage?

Select ONE answer:

1. Operating as a sole trader.
2. Operating in a competitive market.
3. Providing a service for the community.
4. Providing a personalised service.

Show the workings to arrive at your answer, and explain and justify your reasons: