Question 1
Explain one reason Mumtaz has always used internal finance to establish and expand its business.
(4)
Using the data in Extract B, calculate the margin of safety. You are advised to show your working.
(4)
Assess whether expanding by organic growth was the right decision for Mumtaz.
(10)
Using the data in Extract C, assess the likely impact of the forecast changes in the UK economy on a business such as Mumtaz.
(12)
Mumtaz’s aim is to become the UK’s market leader in Asian ready meals. To achieve this, it could produce own label ready meals for supermarkets or focus on selling more Mumtaz premium brand name products.
Evaluate these two options and recommend which is most suitable for Mumtaz to achieve its aim.
(20)