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Transcription of this question: 5.Setting up new businesses in AlbaniaGent Spahiu has worked as a teacher for 25 years in Kote, a small town inAlbania_ His son Agon hasjust moved to Tirana, the Albanian capital, to set up a small business importing electrical appliancesfrom Germany. Albania is one Of Europe’s poorest countries and its economic and politicalenvironment is difficult to conduct business in. Agon is aware Of the economic and political challenges.Most of the population work in agriculture. Towns suffer from poor infrastructure. In the countryside,access to electricity can sometimes be unreliable. In 2009, Albania applied to become a member Ofthe European Union (EU)_ Agon thinks that his business could benefit if Albania joins this regionaltrading bloc.As Agon now lives away from home, Gent wants to use the free time that he now has in the evening.He wants to give local people the skills and knowledge necessary in a modern society. He imaginesan evening school for adults, with classes in subjects such as English, basic computer skills andbusiness. TO pay for the overheads and teachers’ wages, Gent is thinking about the following sourcesOf finance for the evening school:0/0 Of total fundingrequired by GentFees paid by studentsBank loan (at a ve low interest rateFunding from international non-governmentalizations (NGOs)Fundin from local authoritiesGent has work colleagues who have agreed to teach for very low wages; their main motivationis non-financial_ Gent’s evening school will follow business principles, especially for qualitymanagement, but his aim is not primarily to make a profit, it is rather to make improvements to(a)(b)(c)(d)(e)Describe one form Of non-financial reward that Gent could use to motivate theteachers in the evening school.Explain one benefit for Agon’s business if Albania joins a regional trading blocsuch as the European Union (ELI).With reference to Gent’s evening school, contrast two reasons for setting upa business.Analyse the main problems that a business start-up may face in a lesseconomically developed country such as Albania.Discuss Gent’s proposed sources Of finance for the evening school.[2 marks][2 marks][4 marks][5 marks][7 marks]

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