Types & sources of business finance

Which one of the following is a type of business ownership?

Select one answer.

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

Select one answer.

Explain one way e-commerce could lead to increased sales for a small business.

Explain one possible advantage to a small business from a decrease in government taxation.

State one way Pladis could improve the quality of its products.

Outline one method of external growth that Pladis may use.

In order to fund the four new production lines, Pladis considered the following two options:

Option 1: become a public limited company (plc)

Option 2: loan capital.

Justify which one of these two options Pladis should choose.

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.

State one example of a cash inflow for Adikoggz.

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

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.

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

Give one non-financial method to motivate employees in a business.

Figure 4 shows the UK market share of the four largest cinema chains in 2016 and 2019.

(Source: https://www.bfi.org.uk/industry-data-insights/statistical-yearbook 2017 and 2020)

Using the information in Figure 4, identify the only cinema chain that increased its market share in 2019 .

Outline one likely responsibility for a manager of a Cineworld cinema.

In order to cover its loan repayments, Cineworld plc is considering the following two options:

Option 1: selling assets

Option 2: issue new share capital.

Justify which one of these two options Cineworld plc should choose.

Evaluate the importance of charging lower prices to allow Cineworld to return to profit. You should use the information provided as well as your knowledge of business.

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 two of the following are documents produced by a business at the start of the recruitment process?

Select two answers.

Which two of the following are services?

Select two answers.

Table 1 contains financial information about a business.

Using the information in Table 1, calculate to 2 decimal places, the net profit margin.

Explain one disadvantage to a business of using loan capital as a source of finance.

Explain one reason why a business may decide to reduce the size of its workforce.

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 stage in the sales process?

Select one answer.

Figure 2 shows a business’ sales revenue from each of its four locations in South Yorkshire in 2020.

Using the information in Figure 2, calculate the average sales revenue for this business in 2020. You are advised to show your workings.

Explain one method that a business could use to reduce its environmental impact.

Explain one method that a business could use to extend the life cycle of one of its products.

Discuss the impact on a company of using retained profit as a source of finance for expansion.

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

Select one answer.

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

Select one answer.

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

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

State one impact to Tesla of continuing to make a loss.

Outline one drawback to Tesla of a government introducing tariffs on imports from the US.

In order to raise the finance for its new Chinese factory, Tesla is considering two options:

Option 1: share capital

Option 2: loan capital.

Justify which one of these two options Tesla should choose.

Which one of the following is an example of a reward from business activity?

Select one answer.

Which one of the following is a definition of market share?

Select one answer.

Explain one benefit to a small business from having a unique selling point.

Explain one advantage to a small business of using trade credit as a source of finance.

Which two of the following are external sources of finance?

Select two answers.

Which two of the following are methods of external growth for a business?

Select two answers.

Table 1 contains financial information about the performance of a business.

Using the information in Table 1, calculate the gross profit made by the business. You are advised to show your workings.

Explain one benefit to a business of withdrawing a product when it enters the decline phase of its product life cycle.

Explain one benefit to a business from improving the aesthetic element of a product’s design mix.

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

Select one answer.

Which one of the following is a definition of an exchange rate?

Select one answer.

Explain one benefit to an entrepreneur of buying a franchise to start a business.

Explain one way a small business could use market segmentation to target customers.

State one way Aphrodite could use social media.

Table 3 shows the value of the pound (£) in euros (€) from June to September.

Identify, from Table 3, which month was best for Aphrodite to import clothes from Paris.

Outline one reason why Aphrodite’ s range of stock could give it an advantage over its competitors.

To pay for the conversion of the premises, Aphrodite is considering two options:

Option 1: obtaining a bank loan

Option 2: crowd funding.

Justify which one of these two options Aphrodite should choose.

Evaluate the impact of e-commerce on Aphrodite ’s marketing mix. You should use the information provided as well as your knowledge of business.

Which one of the following is an element of the design mix?

Select one answer.

Which one of the following is an example of an internal source of finance?

Select one answer.

Explain one drawback to a business of using job production.

Explain one advantage to a business of producing a high quality product.

State one drawback to Mind Candy of organic growth.

Outline one method Mind Candy could use to promote its new app.

In order to raise the £1.2 million of extra finance needed, Mind Candy considered two options:

Option 1: retained profit

Option 2: share capital.

Justify which one of these two options Mind Candy should choose.