GTB is a business that operates in the tertiary sector. It owns 5 cafés where it sells food and drinks. The business promotes itself through social media. The Finance Manager, Moeen, is examining GTB’s financial statements. An extract appears in Table 2.1. He is thinking about methods to increase GTB’s profit margin. Moeen is aware that there are other users interested in a business’s accounts.
(a)[2]
Define what is meant by ‘tertiary sector’.
(b)[2]
Calculate GTB’s Return on Capital Employed (ROCE), showing your working.
(c)[4]
Outline two methods GTB could use to raise its profit margin.
(d)[6]
Explain two advantages that GTB gains from using social media for promotion.
(e)[6]
Do you think banks are the main external users of the accounts of a business? Justify your response.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Provides services to consumers / other sectors of industry” …