Business 9609 · AS & A Level
Business finance
100 practice questions on Business finance, with worked solutions and instant marking.
Analyse why it is important for businesses to manage their cash levels effectively.
March 2016
State the meaning of 'start up capital' (lines 2–3).
March 2016
From Table 1, work out the profit margin for 2015.
March 2016
Define the term ‘working capital’ in your own words.
March 2017
Define the term ‘profit margin’ from line 5.
March 2017
Analyse how a business might use break-even analysis when planning to launch a new product.
March 2018
Using Table 2, calculate the amount by which revenue earned by LC from the hotel market segment has increased over the last four years.
March 2018
Explain one way LC could make use of the information in its income statement.
March 2018
Define what is meant by the term ‘statement of financial position’.
March 2019
Analyse the advantages for a new business of preparing a cash flow forecast.
March 2019
Calculate the forecast gross profit margin for JF’s Option 1.
March 2019
Explain one reason why JF may want a high gross profit margin.
March 2019
Using Table 1.1, calculate the forecast profit margin for option 1.
March 2020
Explain the meaning of ‘start up capital’ (lines 6–7).
March 2020
Explain the effects on a business of having a high level of working capital.
March 2021
Explain the meaning of 'start‑up capital' (line 2).
March 2021
Using Table 1.1 and any other relevant information, Calculate the maximum weekly revenue for pricing strategy 1.
March 2021
Use Table 2.1. Calculate the gross profit margin for 2020.
March 2021
Define marginal cost.
March 2022
Analyse the benefits of using internal sources of finance for business growth.
March 2022
Use Table 1.1. Calculate the acid test ratio for RR.
March 2022
Analyse two ways in which accurate cost information may be used to raise business performance.
March 2023
Use Table 2.1 and the other information provided. Calculate the total price of Jo’s order.
March 2023
Define trade receivables.
March 2024
Analyse why it is important for a business to tell apart revenue expenditure and capital expenditure.
Summer 2016
Define what is meant by ‘start-up capital’.
Summer 2016
Analyse how profitability ratios might be beneficial to any two business stakeholders.
Summer 2016
Look at Table 1. Calculate the percentage decrease in total revenue between 2013 and 2015.
Summer 2016
Briefly explain one probable effect on PM of this reduction in total revenue.
Summer 2016
Define what is meant by the term ‘income statement’ (line 13).
Summer 2016
Look at Table 3. Calculate PJ’s gross profit margin.
Summer 2016
Explain the likely effect on MS of the decrease in the average price of shoes.
Summer 2016
Discuss the extent to which producing the cash flow forecast in Table 2 is useful for Steve.
Summer 2016
Using Table 3, Calculate CC’s acid test ratio.
Summer 2016
Explain one reason why the acid test ratio is helpful to CC’s Finance Director.
Summer 2016
Give the meaning of the term ‘window dressing’ in relation to published accounts.
Summer 2017
Analyse the ways in which any one stakeholder group could use both an income statement and a statement of financial position.
Summer 2017
Define 'opportunity cost'.
Summer 2017
Using Table 1, Calculate MM’s acid test ratio.
Summer 2017
Define what is meant by the term ‘revenue’ (line 14).
Summer 2017
Explain two suitable methods, apart from market share, that may be used to measure PP’s size.
Summer 2017
Using Table 1, Calculate the gross profit margin for 2016.
Summer 2017
Using Table 3, Calculate the gross profit margin.
Summer 2017
Analyse why accurate cost data matters to all businesses.
Summer 2018
Define the term ‘capital expenditure’ in relation to fixed or non-current assets.
Summer 2018
Analyse the advantages of venture capital as a source of finance for a small business.
Summer 2018
Explain how your answer to 1(b)(i) could be applied by CS.
Summer 2018
Using line 15, define the term ‘retained earnings’.
Summer 2018
Calculate VC’s working capital.
Summer 2018
Calculate the order’s total revenue from the large bank (lines 7–12).
Summer 2018
Calculate DTY's retained earnings in 2017.
Summer 2018
Discuss the view that the limitations of income statements and statements of financial position substantially lessen their usefulness as indicators of business performance.
Summer 2019
Analyse the benefits of crowd funding as a source of finance for small businesses.
Summer 2019
Analyse the external sources of finance a multinational car manufacturer might use to fund the production of a new electric car.
Summer 2019
Using Table 2.1, Calculate the total value of the internet service market in country X.
Summer 2019
Using Table 2.1, Evaluate the financial performance of PI compared with its competitors.
Summer 2019
Analyse the advantages for a new business of using break-even analysis.
Summer 2020
Analyse the drawbacks to a business of using debt factoring to improve its cash flow.
Summer 2020
Using Table 1.1, calculate the total revenue UF received in 2019.
Summer 2020
Define what is meant by the term ‘income statement’ (line 8).
Summer 2020
From Table 2.1, Calculate the gross profit margin.
Summer 2020
Use Table 1.1 together with any other information provided. Work out the total revenue from entrance tickets for SH in 2019.
Summer 2020
Recommend which of the two internal growth options SH ought to select. Justify your recommendation.
Summer 2020
Explain the importance of working capital for a new business.
Summer 2021
Analyse how accurate cost information benefits a business.
Summer 2021
Analyse the advantages for an entrepreneur of using micro-finance as a source of start-up capital.
Summer 2021
Refer to Table 1.1. Calculate Ray’s projected average daily revenue if he joins Summus.
Summer 2021
Recommend whether Ray should join Summus and Justify your recommendation.
Summer 2021
Define what is meant by ‘margin of safety’ (line 4).
Summer 2021
Explain the meaning of 'profit margin' (line 6).
Summer 2021
Use Table 2.1. Calculate the total profit made from selling oysters in 2020.
Summer 2021
Look at Table 1.1. Calculate the profit margin Bilal achieved on the final three apartments that he bought and sold.
Summer 2021
Define the term ‘liquidity’ (line 15).
Summer 2021
Use Table 2.1 together with any other relevant information. Calculate the total revenue from selling the Classic belt in 2020.
Summer 2021
Explain why a business manager must know the distinction between capital expenditure and revenue expenditure.
Summer 2022
Discuss how far you agree with the view that the published accounts of a public limited company are useful only to internal stakeholders.
Summer 2022
Explain the difference between cash and profit (line 23).
Summer 2022
Using Table 2.1, Calculate MC’s acid test ratio.
Summer 2022
Explain one reason why the acid test ratio is useful to MC’s Finance Director.
Summer 2022
Refer to Table 1.2. Calculate the profit earned by FP in April 2022.
Summer 2022
Explain two possible limitations of SH’s use of break-even analysis.
Summer 2022
Analyse two purposes of a cash flow forecast for a business.
Summer 2023
Explain what is meant by working capital.
Summer 2024
Analyse two benefits to a business of using break-even analysis.
Summer 2025
Explain what the term working capital means.
Summer 2025
Using Table 2.1, calculate FF’s profit in 2024.
Summer 2025
Define what is meant by the term ‘working capital’.
Winter 2016
Analyse the benefits of crowd funding as a source of finance for a small business.
Winter 2016
Briefly explain what ‘working capital’ (line 9) means.
Winter 2016
Using Table 2, calculate the value of X.
Winter 2016
Briefly describe the changes in YP’s liquidity position.
Winter 2016
Define the phrase 'retained earnings'.
Winter 2017
Discuss the view that, for senior managers of a new international airport, cash flow forecasts may have only limited value.
Winter 2017
Use Table 1 to calculate the current ratio for 2016.
Winter 2017
Explain one way in which the information in Table 1 might be useful to a potential investor.
Winter 2017
Use Table 1 and lines 16–17 to Calculate the profit JS would make from the supermarket order.
Winter 2017
Analyse the advantages and disadvantages for a new business of using an overdraft to help manage its cash flow.
Winter 2018
Analyse the importance for a business of setting clear marketing objectives.
Winter 2018
Calculate the revenue earned from cakes with a jam filling.
Winter 2018
Explain one likely effect on KC of cutting the business’s product portfolio.
Winter 2018