Question 1

Priya's Bookshop (PB)

Priya lives in town R which is situated in beautiful countryside with nice walks nearby. Many tourists visit town R. The town's council would like town R to become branded as a 'booktown', a town with many bookshops selling new and used books. The council announced a new financial scheme offering grants to attract entrepreneurs willing to open a bookshop. Priya applied for a grant to start up Priya's Bookshop (PB). Priya now wants to raise awareness of PB in town R. Priya did some market research and decided to use market segmentation. This will help her to decide on the promotional methods she could use for her bookshop.

Define the term 'market segmentation' (line 25).

Priya's Bookshop (PB)

Priya applied for a grant to start up Priya's Bookshop (PB). Part of her grant application included a cash flow forecast. Priya's grant application was successful and she opened PB well aware of the need for both cash and profit.

Explain the difference between cash and profit (line 23).

Priya's Bookshop (PB)

Part of Priya's grant application included a cash flow forecast, shown in Table 1.1.

Refer to Table 1.1. Calculate PB's forecast closing balance in month 3 (X).

Priya's Bookshop (PB)

Priya applied for a grant to start up Priya's Bookshop (PB). Part of her grant application included a cash flow forecast for the first three months of trading.

Analyse two benefits to Priya of producing a cash flow forecast.

Priya's Bookshop (PB)

Priya lives in town R which is situated in beautiful countryside with nice walks nearby. Many tourists visit town R. The town's council announced a new financial scheme offering grants to attract entrepreneurs willing to open a bookshop. Priya applied for a grant to start up Priya's Bookshop (PB), including a cash flow forecast in her application. Her application was successful and she opened PB well aware of the need for both cash and profit. Priya then did some market research and decided to use market segmentation to help decide on promotional methods.

Explain two entrepreneurial qualities that Priya has shown.

Priya's Bookshop (PB)

Priya has opened Priya's Bookshop (PB) in town R, a town in beautiful countryside visited by many tourists, which the council wants to brand as a 'booktown'. Priya now wants to raise awareness of PB in town R. She did some market research and decided to use market segmentation to help her decide on the promotional methods she could use for her bookshop.

Recommend suitable promotional methods that Priya could use to raise awareness of PB in town R. Justify your recommendation.