Intro to business exercise 2

1. Intro to Business Exercise 2.0
1. What is a niche market? Provide TWO (2) examples (other than from the
lecture notes) of a niche market? Why would a business want to target a
niche market? Give ONE (1) reason.
2. What would motivate some people to start their own business? Provide
TWO (2) possible motivations/reasons.
3. What is limited liability? Is this an advantage or a disadvantage to the
business owner? How (i.e. illustrate with an example)?
4. What is a franchise? Explain and provide TWO (2) examples of
franchises. Why would the parent company of a franchise choose to sell
licenses to franchisees instead of expanding their own chain of stores?
5. How can internet help a recently-started small business? Provide TWO (2)
suggestions.
6. If you are a banker and Gabriel wants to apply for a loan from you to start
a business, under which circumstances would you be more likely to lend –
a) he wants to buy an existing business or b) he wants to start a brand
new business? Why?
7. Discuss TWO (2) advantages and TWO (2) disadvantages of a
partnership.
8. What are shares? Where are shares traded in Malaysia? How is the price
of a company’s share determined in a share market?