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?