Revenues, costs & profits

Which two of the following are ways that a small business could add value?

Select two answers.

Which two of the following are elements of the marketing mix?

Select two answers.

Table 1 contains information for a small business.

Using the information in Table 1, calculate the fixed costs for the small business. You are advised to show your workings.

Explain one way a unique selling point could add value to a small business.

Explain one disadvantage of starting a business as a sole trader.

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

Select one answer.

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

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

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

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

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

Table 2 shows the selling price for a selection of pizzas from the Pizza Pilgrims ’ menu.

Using the information in Table 2, calculate the average selling price for a pizza. You are advised to show your workings.

Table 3 shows the number of pizzas sold in April and the total cost of producing each

Using the information in Table 2 and Table 3, calculate the amount of profit made in April from selling Nduja pizzas. You are advised to show your workings.

Analyse the impact on Pizza Pilgrims from an increase in the rate of inflation.

Which two of the following could be used to collect secondary market research?

Select two answers.

Which two of the following are covered by employment law?

Select two answers.

Table 1 contains information for a small business.

Using the information in Table 1, calculate the total costs for the small business. You are advised to show your workings.

Explain one disadvantage to a small business from using retained profit for expansion.

Explain one advantage of opening up a business as a franchise.

Which one of the following is a financial aim for a new business?

Select one answer.

Figure 1 shows the number of units sold by a business each month from June to August. The break even level of output for each month was 5,000.

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

Explain one disadvantage to a small business from an increase in unemployment.

Explain one advantage to a small business from using e-commerce.

Discuss the way a small business could use branding to add value.

In the Source Booklet, look at Figure 3 and read Extract B, then answer Question 7.

State one example of a fixed cost for PFC.

Table 3 shows the % of the local population that has a gym membership in different regions of the UK.

(Source: adapted from Yougov survey 2022)

Table 3

Using the information in Table 3, identify which region had the lowest level of gym membership in the UK .

Outline one factor that could have influenced the location of PFC.

In order to increase the number of new members at PFC, the owner is considering two options:

Option 1: reducing the price of membership

Option 2: providing an individual fitness plan for all new members.

Justify which one of these two options would have the bigger impact on new membership at PFC.

Evaluate the importance of the level of consumer income to the success of PFC. You should use the information provided as well as your knowledge of business.

Which two of the following are examples of customer needs?

Select two answers.

Which two of the following are roles of an entrepreneur?

Select two answers.

Table 1 contains information about a small business.

The business increases the selling price of its product to £6.50 per unit.

Using the information in Table 1, calculate the decrease in the break even level of output. You are advised to show your workings.

Explain one way a small business could become more competitive.

Explain one advantage to a small business of meeting its legal obligations.

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

Select one answer.

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

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

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

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

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

Which one of the following is an example of a variable cost?

Select one answer.

Which one of the following could be used to identify a market segment?

Select one answer.

Explain one risk for an entrepreneur when starting a new business.

Explain one way a small business could add value to a product.

Which two of the following are examples of a service?

Select two answers.

Which two of the following are examples of cash inflows?

Select two answers.

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

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

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

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

Which one of the following is a definition of insolvency?

Select one answer.

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

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

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

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

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

When starting the business in 2007, Melanie took out a loan. The financial details of this loan are in Table 2.

Using the information in Table 2, calculate the interest on the loan as a percentage of the total amount borrowed. You are advised to show your workings.

Using the information in Table 2, calculate, to 2 decimal places, the monthly repayments for the loan. You are advised to show your workings.

Analyse the impact on Little Movers of having a strong brand.

State one source of revenue for Digital Allies.

Figure 2 shows the number of social media accounts in the UK in 2019.

Number of social media accounts (millions)

(Source: adapted from https://www.avocadosocial.com/latest-social-media-statistics-and-demographics-for-the-uk-in-2019/)

Using the information in Figure 2, identify which social media platform was the second largest in the UK in 2019.

Outline one impact on the owners of Digital Allies from being a private limited company.

In order to help improve digital marketing for a local university, Digital Allies is considering two options:

Option 1: improve the design of the university website

Option 2: design a social media campaign to target new students.

Justify which one of these two options Digital Allies should choose.

Evaluate the impact that changes in technology may have on Digital Allies. You should use the information provided as well as your knowledge of business.

Which one of the following is a disadvantage of starting a partnership?

Select one answer.

Figure 1 shows the sales revenue of a business from January to April.

Using the information in Figure 1, calculate, to 2 decimal places, the percentage decrease in sales revenue from January to March. You are advised to show your workings.

Explain one disadvantage to a small business of an increase in interest rates.

Explain one disadvantage to a small business of manufacturing a high quality product.

Discuss the impact on a small business from the introduction of new employment laws.

State one fixed cost that Sports Tours Ltd will need to pay.

Outline one likely impact of changing levels of consumer income on Sports Tours Ltd.

In order to add value to its business activities Sports Tours Ltd is considering two options:

Option 1: using professional sports venues for tournaments

Option 2: providing teams with top class coaching when on tour.

Justify which one of these two options Sports Tours Ltd should choose.

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

Select two answers.

Which two of the following are examples of variable costs?

Select two answers.

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.

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

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

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

Which one of the following is a characteristic of a sole trader?

Select one answer.

Figure 1 shows the total costs for a business between May and July.

Using the information in Figure 1, calculate the percentage change in total costs between May and July. You are advised to show your workings.

Explain one reason why new business ideas come about.

Explain one advantage to a small business of using market mapping.

Discuss how the decision making of a small business may be affected by increased competition.

On Your Bike has made the following forecasts for the costs and sales of its bikes for 2021.

Using the information in Table 2, calculate the selling price per bike. You are advised to show your workings.

Using the information in Table 2, calculate the profit On Your Bike is forecast to make from selling bikes in 2021. You are advised to show your workings.

The owners of On Your Bike want to lower the break even level of output and have decided to do this by reducing costs.

Analyse the impact on On Your Bike of reducing costs in order to lower its break even level of output.

Which two of the following are elements of the marketing mix?

Select two answers.

Which two of the following areas are covered by employment law?

Select two answers.

Table 1 contains information about a small business for one month. The business sold 340 units in this month.

Using the information in Table 1, calculate the total costs for one month. You are advised to show your workings.

Explain one possible non-financial aim an entrepreneur may have when starting a small business.

Explain one disadvantage to a small business of using qualitative data for market research.

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

Select one answer.

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

Revenue and total costs from January to March

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

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

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

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

Last Course Patisserie has the following financial information for the month of April.

Using the information in Table 2, calculate the level of output required to break-even in April. You are advised to show your workings.

In May suppliers increased the cost of raw materials by 4%.

Using the information in Table 2, calculate the variable cost per dessert following the increase in the cost of raw materials.

UK consumer incomes are expected to rise over the next 10 years.

Analyse the likely impact on Last Course Patisserie of this changing level of consumer income.