Practice Questions
Question 1
Alexander is planning to open a café in the local high street. He hopes to offer breakfast,
lunch, snacks and drinks. He would like to call his business ‘Sandy’s Place’.
a. Advise Alexander on two legal requirements of which he needs to be aware. Ensure that
these are relevant to his café business. (2 marks)
b. Explain why Alexander should set up a business bank account that is separate from his
personal bank account. (1 mark)
Alexander is considering which suppliers to engage for his business.
c. Identify two factors that Alexander should consider when choosing a supplier. Explain
why each of these factors is important. (2 marks)
d. Alexander would like to choose suppliers that value principles of corporate social
responsibility. Outline one advantage and one disadvantage that may be associated
with ethical procurement. (2 marks)
e. Outline one other strategy that Alexander could put in place to ensure that his business
complies with the principles of ethics and social responsibility. (2 marks)