Question

Read the following case study and answer the questions that follow. case study lisa had just completed a catering course but had been unsuccessful in gaining employment. her father had been made redundant from the local electronics firm and had received a redundancy payment of over £4,000. he had been fortunate enough to gain employment immediately with another firm, and when lisa asked if he could lend her some money to start up her own business he agreed. she found premises close to a retail park at a reasonable rent and set up in business on her own supplying sandwiches, soup and various other carry out snacks.

a)In which sector of the economy will Lisa be working?
b)How did Lisa raise the money to start up her business?
c)What is the name given to someone who sets up in business on their own?
d)What is the term given to someone who identifies a business opportunity and who is willing to take risks?
e)A year after starting her business, Lisa decides her turnover is so great that now is the time to get more money. Suggest two sources of finance that Lisa could use.

Answer 1

Lisa is working in the tertiary sector, raised her startup funds from her father, is considered a sole proprietor and entrepreneur, and could look to angel investors or a bank loan for further financing.

Step-by-step explanation:

The case study about Lisa's catering business touches on several key business concepts. Let's address the specific questions.

• a) In which sector of the economy will Lisa be working? Lisa will be working in the tertiary sector, which involves providing services such as food, rather than goods.
• b) How did Lisa raise the money to start up her business? Lisa raised the initial capital for her business by borrowing money from her father, who had received a redundancy payment.
• c) What is the name given to someone who sets up in business on their own? Someone who sets up a business on their own is known as a sole proprietor.
• d) What is the term given to someone who identifies a business opportunity and who is willing to take risks? Such a person is called an entrepreneur.
• e) Suggest two sources of finance that Lisa could use. After a year, Lisa could consider angel investors or a bank loan as two possible sources of finance to expand her business.