Everyday Business Case Studies: Checkpoint 1

Quick checkpoint - five questions on the chai stall, auto-rickshaw, tiffin service, barber and tailor.

Question 1 of 5 How does a chai stall earn a decent income on small margins?

By charging very high prices Through high volume and low fixed costs, often in a good location By selling only on weekends Through government subsidies

Many small contributions per cup add up with high sales.

Question 2 of 5 Why does owning an auto raise a driver's income over time?

Owners pay no fuel costs Once the loan is repaid, there's no daily rent or EMI Owned autos are faster Fares are higher for owners

Ownership increases earnings after the loan is paid off.

Question 3 of 5 What lets a tiffin service's cost per meal fall as it grows?

Higher prices Economies of scale like bulk buying and batch cooking Fewer customers Using less food

Scale spreads costs and improves efficiency.

Question 4 of 5 What mainly limits a barber's income?

The number of combs Time and capacity per chair The weather Taxes

Each haircut takes time, capping services per hour.

Question 5 of 5 How have many tailors survived competition from ready-made clothes?

By lowering prices below factories By focusing on alterations, festive wear and custom fits By closing shops By selling electronics

Niches where customisation matters help small businesses compete.

← Back to The Phone Repair Shop: Skills and Spare Parts Next lesson → The Cloud Kitchen: Food Without a Restaurant

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