Question 1
Explain one financial reason why Leo Scott Smith decided to establish Tended Ltd as a private limited company.
(4)
Tended Ltd has constructed the decision tree below to help it decide whether to develop a new smartwatch or launch a new marketing campaign.
Success
The net gain for the new smartwatch is £1.3 million.
Using the data in the decision tree, calculate the net gain for the marketing campaign. State your answer to two decimal places. You are advised to show your working.
(4)
Assess the likely value of a business plan to Tended Ltd.
(10)
Assess the extent to which the problems of rapid growth may have been managed by Tended Ltd.
(12)
To achieve its aim of increasing its market share of the global wearable technology market, Tended Ltd could produce a new smartwatch or launch a marketing campaign for ‘Tended Protect’.
Evaluate these two options and recommend which one is most suitable for Tended Ltd to achieve its aim of increasing its market share.
(20)