List TWO features that a closed economy will prohibit.

2.1 Table of goods, services, fixed and variable costs

Goods sold: pet food, pet accessories.
Services offered: delivery service.

Fixed costs remain constant regardless of sales volume. Examples: shop rent, insurance, fixed salaries.
Variable costs change with sales volume. Examples: cost of pet food/accessories, fuel for deliveries.

$$\begin{array}{l|l|l} \textbf{Category} & \textbf{Examples} & \textbf{Fixed/Variable} \\ \hline \text{Goods} & \text{Pet food} & \text{Variable (cost of goods sold)} \\ & \text{Pet accessories} & \text{Variable (cost of goods sold)} \\ \hline \text{Services} & \text{Delivery service} & \text{Variable (fuel, packaging)} \\ \hline \text{Other costs} & \text{Shop rent} & \text{Fixed} \\ & \text{Insurance} & \text{Fixed} \\ & \text{Electricity} & \text{Fixed (or semi-variable)} \\ & \text{Cost of goods sold} & \text{Variable} \\ & \text{Delivery fuel} & \text{Variable} \\ \end{array}$$

2.2 Features of a sole trader

1. Single ownership: Owned and controlled by one person who provides all the capital.

2. Unlimited liability: The owner has unlimited liability, meaning personal assets are at risk if the business fails.

3. All profits to owner: The owner keeps all profits after taxes.

4. Full decision-making: The owner makes all business decisions without partners.

5. No separate legal entity: The business and owner are not legally separate.

6. Easy and inexpensive to start: Simple registration, low setup costs.

7. Limited capital: Difficult to raise large amounts of capital as no shares can be sold.

8. Personal skill dependent: Success relies on the owner's skills and effort.

**Total: 2.1 [15 marks] + 2.2 [10 marks] = 25 marks}