IGCSE Enterprise 0454/11 Paper 1 Quiz

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What is the main issue faced by Virgil and Rinsola's factory?

Lack of demand for their clothing products

Inability to find retailers to sell their clothing to

Lack of innovation leading to difficulty in making a profit (correct)

High production costs resulting in low profit margins

Why are Virgil and Rinsola considering selling the factory?

Lack of demand for their clothing products

Legal issues with the factory

High production costs

Inability to improve profits (correct)

What is Rinsola's idea for improving the factory's profits?

Printing clothing with the soccer team's logo (correct)

Expanding the factory's production capacity

Investing in new machinery for the factory

Selling the factory to stakeholders

Why do Virgil and Rinsola believe that selling the factory would have negative consequences?

Negative impact on stakeholders Signup and view all the answers

What is the current state of the factory's profitability?

Struggling to make a profit due to lack of innovation Signup and view all the answers

What are the potential consequences for stakeholders if Virgil and Rinsola sell the factory?

If Virgil and Rinsola sell the factory, stakeholders may face negative consequences such as loss of employment, financial instability, and impact on the local economy. Signup and view all the answers

How does the lack of innovation impact the factory's profitability?

The lack of innovation makes it difficult for the factory to attract new customers, retain existing ones, and stay competitive in the market, leading to a decline in profitability. Signup and view all the answers

What type of clothing does the factory produce and sell to retailers?

The factory produces and sells clothing, potentially including items such as t-shirts, jerseys, and other apparel, to retailers. Signup and view all the answers

What inspired Rinsola's idea for improving the factory's profits?

Rinsola was inspired by seeing people wearing clothing printed with their soccer team's logo during a game, leading her to consider incorporating similar branding or customization into the factory's products. Signup and view all the answers

What is the potential outcome if Virgil and Rinsola cannot find a way to improve the factory's profits?

If Virgil and Rinsola cannot improve the factory's profits, they may be forced to sell the factory, which could have negative consequences for stakeholders and the local community. Signup and view all the answers