Business 9609 · AS & A Level · Operations strategy

Operations strategy — practice question

(a)[4]

Using Table 1.2, Calculate the gearing ratio for 2023.

(b)[12]

Evaluate how far the financial data provided will enable HP to decide how to finance the factory modernisation.

Worked solution & mark scheme

This 16-mark question has a full step-by-step worked solution and mark scheme. One marking point: State the gearing formula as: Gearing = Non-current liabilities / (Non-current liabilities + Shareholders' equity) × 100 (1 mark for formula).

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