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Edexcel GCSE Business Studies

Topic questions Business economics Cash flow

Cash flow

14 questions · 179 marks · about 3.5 hours

Cash flow questions

Edexcel 1BS0 Cash flow 14 questions

Paper 1: Investigating small business June 2025, Question 3 15 marks

(a)

Which one of the following is an advantage of starting as a franchisee?

Select one answer.

Question 3, shown as an image
[1]
Reveal mark scheme Mark scheme for question 3(a)
(b)

Figure 1 shows the total costs per year for a small business from 2021 to 2023.

Figure for question 3

Using the information in Figure 1, calculate the percentage increase in total costs between 2021 and 2022. You are advised to show your workings.

Figure for question 3
[2]
Reveal mark scheme Mark scheme for question 3(b)
(c)

Explain one advantage to a small business of creating a cash-flow forecast.

[3]
Reveal mark scheme Mark scheme for question 3(c)
(d)

Explain one disadvantage to a small business of using primary market research.

[3]
Reveal mark scheme Mark scheme for question 3(d)
(e)

Discuss how proximity to market could influence the location of a small business.

[6]
Reveal mark scheme Mark scheme for question 3(e)

Paper 1: Investigating small business June 2025, Question 6 12 marks

(a)

State one cash outflow for Pizza Pilgrims.

[1]
Reveal mark scheme Mark scheme for question 6(a)
(b)

Outline one drawback to Pizza Pilgrims from using digital payment systems.

[2]
Reveal mark scheme Mark scheme for question 6(b)
(c)

In order to increase profit, Pizza Pilgrims is considering two options:

Option 1: increase the prices of ‘Pizza Through the Post’

Option 2: adding more items to the menu

Justify which one of these two options Pizza Pilgrims should choose.

[9]
Reveal mark scheme Mark scheme for question 6(c)

Paper 1: Investigating small business June 2024, Question 1 8 marks

(a)

Which one of the following is a way of segmenting a market?

Select one answer.

Question 1, shown as an image
[1]
Reveal mark scheme Mark scheme for question 1(a)
(b)

Which one of the following is a definition of insolvency?

Select one answer.

Question 1, shown as an image
[1]
Reveal mark scheme Mark scheme for question 1(b)
(c)

Explain one disadvantage of starting a business as a partnership.

[3]
Reveal mark scheme Mark scheme for question 1(c)
(d)

Explain one advantage to customers from increased competition.

[3]
Reveal mark scheme Mark scheme for question 1(d)

Paper 1: Investigating small business June 2024, Question 6 12 marks

(a)

State one example of a cash inflow for Adikoggz.

[1]
Reveal mark scheme Mark scheme for question 6(a)
(b)

Outline one benefit to Keilan from producing a business plan for Adikoggz.

[2]
Reveal mark scheme Mark scheme for question 6(b)
(c)

To help prevent cash-flow problems Adikoggz is considering two options as a short-term source of finance:

Option 1: an overdraft from the bank

Option 2: trade credit from suppliers.

Justify which one of these two options Adikoggz should choose.

[9]
Reveal mark scheme Mark scheme for question 6(c)

Paper 1: Investigating small business June 2023, Question 3 15 marks

(a)

Which one of the following could a small business use to add value?

Select one answer.

Question 3, shown as an image
[1]
Reveal mark scheme Mark scheme for question 3(a)
(b)

Figure 1 shows the number of units sold per month by a business from February to April. The selling price for each unit was £5.20

Figure for question 3

Using the information in Figure 1, calculate the revenue for March. You are advised to show your workings.

Figure for question 3
[2]
Reveal mark scheme Mark scheme for question 3(b)
(c)

Explain one disadvantage to a small business of not paying its employees on time.

[3]
Reveal mark scheme Mark scheme for question 3(c)
(d)

Explain one advantage to a small business from using retained profit as a source of finance.

[3]
Reveal mark scheme Mark scheme for question 3(d)
(e)

Discuss the impact on a small business from adapting existing products to develop new business ideas.

[6]
Reveal mark scheme Mark scheme for question 3(e)

Paper 1: Investigating small business June 2023, Question 5 10 marks

Also involves Interpreting marketing data

Table 2 shows forecasts from the business plan for month one of Lili Heating Ltd.

Figure for question 5
(a)

Using the information in Table 2, calculate Lili Heating Ltd ’s forecasted closing balance at the end of month one. You are advised to show your workings.

Figure for question 5
[2]
Reveal mark scheme Mark scheme for question 5(a)
(b)

As part of her market research Amelia collected quantitative research from the Birmingham City Council website. Some of this information can be seen in Table 3.

Figure for question 5

(Source: adapted from https://www.birmingham.gov.uk/downloads/file/ 10293/2017_birmingham_population_tool)

Using the information in Table 3, calculate to 2 decimal places, the percentage of people in the age group 45–49 that are female. You are advised to show your workings.

Figure for question 5
[2]
Reveal mark scheme Mark scheme for question 5(b)
(c)

Analyse the impact on Lili Heating Ltd of using the internet to collect secondary market research.

[6]
Reveal mark scheme Mark scheme for question 5(c)

Paper 1: Investigating small business June 2022, Question 2 12 marks

Also involves Financial objectives and financial management

(a)

Which two of the following are examples of a service?

Select two answers.

Question 2, shown as an image
[2]
Reveal mark scheme Mark scheme for question 2(a)
(b)

Which two of the following are examples of cash inflows?

Select two answers.

Question 2, shown as an image
[2]
Reveal mark scheme Mark scheme for question 2(b)
(c)

Table 1 contains information about a small business for one month.

Figure for question 2

Using the information in Table 1, calculate the margin of safety. You are advised to show your workings.

Figure for question 2
[2]
Reveal mark scheme Mark scheme for question 2(c)
(d)

Explain one disadvantage to a small business of using an overdraft as a source of business finance.

[3]
Reveal mark scheme Mark scheme for question 2(d)
(e)

Explain one impact on a small business of an increase in unemployment.

[3]
Reveal mark scheme Mark scheme for question 2(e)

Paper 1: Investigating small business June 2022, Question 3 15 marks

(a)

Which one of the following is a definition of insolvency?

Select one answer.

Question 3, shown as an image
[1]
Reveal mark scheme Mark scheme for question 3(a)
(b)

Figure 1 shows the cash-flow of a business from May to August.

Figure for question 3

Using the information in Figure 1, calculate the total net cash-flow from May to August. You are advised to show your workings.

Figure for question 3
[2]
Reveal mark scheme Mark scheme for question 3(b)
(c)

Explain one way a small business could reduce its variable costs.

[3]
Reveal mark scheme Mark scheme for question 3(c)
(d)

Explain one advantage to a small business of meeting all employment legislation.

[3]
Reveal mark scheme Mark scheme for question 3(d)
(e)

Discuss how possible conflicts between owners and employees could affect the profit of a small business.

[6]
Reveal mark scheme Mark scheme for question 3(e)

Paper 1: Investigating small business November 2021, Question 1 8 marks

(a)

Which one of the following is a long-term source of finance?

Select one answer.

Question 1, shown as an image
[1]
Reveal mark scheme Mark scheme for question 1(a)
(b)

Which one of the following could be used to identify customer needs?

Select one answer.

Question 1, shown as an image
[1]
Reveal mark scheme Mark scheme for question 1(b)
(c)

Explain one drawback to a business of having low levels of cash.

[3]
Reveal mark scheme Mark scheme for question 1(c)
(d)

Explain one way an entrepreneur can reduce the risk of failure when starting a new business.

[3]
Reveal mark scheme Mark scheme for question 1(d)

Paper 1: Investigating small business November 2021, Question 2 12 marks

(a)

Which two of the following can be interpreted from a break even diagram?

Select two answers.

Question 2, shown as an image
[2]
Reveal mark scheme Mark scheme for question 2(a)
(b)

Which two of the following are types of technology that could be used by a business?

Select two answers.

Question 2, shown as an image
[2]
Reveal mark scheme Mark scheme for question 2(b)
(c)

Table 1 shows the cash-flow forecast for a small business.

Complete the table with the two missing figures.

Figure for question 2
[2]
Reveal mark scheme Mark scheme for question 2(c)
(d)

Explain one reason why an entrepreneur may adapt an existing product to come up with a new business idea.

[3]
Reveal mark scheme Mark scheme for question 2(d)
(e)

Explain one disadvantage to a small business of using a focus group to collect market research data.

[3]
Reveal mark scheme Mark scheme for question 2(e)

Paper 1: Investigating small business November 2021, Question 7 25 marks

Also involves Human resource management

Figure for question 7
(a)

State one example of a cash outflow for That Feeling.

[1]
Reveal mark scheme Mark scheme for question 7(a)
(b)
Figure for question 7
[1]
Reveal mark scheme Mark scheme for question 7(b)
(c)

Outline one benefit to employees at That Feeling from being mentored by Justin.

[2]
Reveal mark scheme Mark scheme for question 7(c)
(d)

In order to improve its brand awareness, That Feeling is considering two options:

Option 1: increase its range of own brand clothing

Option 2: open a second shop.

Justify which one of these two options That Feeling should choose.

[9]
Reveal mark scheme Mark scheme for question 7(d)
(e)

Evaluate the importance of achieving non-financial objectives for the success of That Feeling. You should use the information provided as well as your knowledge of business

[12]
Reveal mark scheme Mark scheme for question 7(e)

Paper 1: Investigating small business November 2020, Question 2 12 marks

(a)

Which two of the following are examples of secondary market research?

Select two answers.

Question 2, shown as an image
[2]
Reveal mark scheme Mark scheme for question 2(a)
(b)

Which two of the following are examples of variable costs?

Select two answers.

Question 2, shown as an image
[2]
Reveal mark scheme Mark scheme for question 2(b)
(c)

Table 1 contains information about cash payments of a small business in one month. The business sold 200 units in this month. All customers paid in cash.

Selling price£15
Rent£500
Wages£1 000
Advertising£150
Question 2, shown as an image

Using the information in Table 1, calculate the net cash flow for this month You are advised to show your workings.

Figure for question 2
[2]
Reveal mark scheme Mark scheme for question 2(c)
(d)

Explain one disadvantage of starting a small business as a partnership.

[3]
Reveal mark scheme Mark scheme for question 2(d)
(e)

Explain one way the marketing mix of a small business may change due to changing consumer needs.

[3]
Reveal mark scheme Mark scheme for question 2(e)

Paper 1: Investigating small business November 2020, Question 4 8 marks

(a)

Outline one reason why cash would be important to On Your Bike.

[2]
Reveal mark scheme Mark scheme for question 4(a)
(b)

Analyse the impact on On Your Bike of customers using social media to review the business.

[6]
Reveal mark scheme Mark scheme for question 4(b)

Paper 1: Investigating small business June 2019, Question 3 15 marks

(a)

Which one of the following is an example of a cash outflow for a small business?

Select one answer.

Question 3, shown as an image
[1]
Reveal mark scheme Mark scheme for question 3(a)
(b)

Figure 1 shows information about the financial performance of a business from January to March.

Revenue and total costs from January to March

Figure for question 3

Using the information in Figure 1, calculate the total profit for the period January to March. You are advised to show your workings.

Figure for question 3
[2]
Reveal mark scheme Mark scheme for question 3(b)
(c)

Explain one benefit to a small business of understanding customer needs.

[3]
Reveal mark scheme Mark scheme for question 3(c)
(d)

Explain one reason why it is important to include financial information in a business plan.

[3]
Reveal mark scheme Mark scheme for question 3(d)
(e)

Discuss the importance of cash to the survival of a small business.

[6]
Reveal mark scheme Mark scheme for question 3(e)

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Evaluate both sides
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Me on the case study about a bakery
Knowing what profit is
Knowing profit isn't cash flow
Drawing the break-even chart right
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