Feb/March 2024

TCH is a small bakery that makes pastries and cakes. It is part of the secondary sector. Since it opened 3 years ago, the added value of TCH’s products has risen. TCH motivates its 6 employees using non-financial methods. Its business objectives have altered since it began trading. One of the new objectives is expansion. Many businesses turn to external recruitment when they expand.

Recruitment, selection and training of employees

PLY makes hats at its factory in country X. Country X's economy is in recession. PLY sells its hats online to the mass market. It communicates with customers by email. PLY relies on market research when taking decisions. The Managing Director is considering ways for PLY to become more environmentally friendly because she is aware of new legal controls over business activity. She is also aware of the role of pressure groups.

Environmental and ethical issues

FR is a multinational business with hotels in 18 countries. It is looking to enter a new market and intends to open another hotel. FR’s Marketing Director is thinking about how the market could be divided into segments. FR’s Financial Director is deciding which source of finance should be used to pay for the expansion. He is also preparing a cash-flow forecast for the first year that the new hotel trades.

Cash-flow forecasting and working capital

Suliman runs a small website business that sells t-shirts. He works as a sole trader. He is studying data from his current business, with an extract shown in Table 4.1. Suliman plans to open his first shop and must choose an appropriate location. He is also deciding which sales promotion method to use for the new shop.

Costs, scale of production and break-even analysis

Explain four reasons why governments back the start-up of new businesses.

Enterprise, business growth and size

Explain two advantages to AF from segmenting its market.

Marketing mix

Explain two ways an appreciation in the exchange rate of country X could influence AF.

Business and the international economy

Explain two advantages and two disadvantages for AF of using retained profit to finance the investment in the factory.

Business finance