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Omar Omar Y10A OE1 Business Studies Homework Exam Practice Questions, p34 Foundation Tier Seaview is a ten-room bed and breakfast boarding house at a seaside resort on the north-east coast. At present, it is open for eight months of the year, from 1 April to 1 December, but many of the rooms remain unlet. The owners have three plans to attract more customers. Plan 1-to offer evening meals Plan 2-to reduce prices, although these are competitive with similar establishments for the town Plan 3-to open for the whole year Questions: 1. (a) Explain the possible effects on the business of each plan Plan 1 may reduce profits of the boarding house because the owners would have to hire more staff to cook and serve the meal. An evening meal would be a necessity for every guest who would eat dinner anyway. It depends if other establishments in the area offer evening meals; if they don't then this boarding house has a unique...

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