Yanis runs a busy restaurant in the city centre. He has 4 skilled chefs and 6 workers who serve customers in the restaurant. Every employee is employed on part-time contracts. The chefs receive a high hourly wage rate, but they are given no bonuses. Yanis is concerned that too many chefs resign. He is considering other ways to motivate the chefs. Yanis would like to open another restaurant but is concerned about growth-related difficulties. He has drawn up a balance sheet as part of his business plan. An extract is shown in Table 2. The current ratio was 1.2:1 in 2016.
(a)[2]
Identify two main sections of a business plan apart from finance.
(b)[2]
What does the term ‘non-current assets’ mean?
(c(i))[2]
Calculate the current ratio on 30 September 2017.
(c(ii))[2]
Explain what the two current ratio figures indicate about Yanis’s business.
(d)[6]
Identify two possible difficulties Yanis could face if he expands his business. Explain what he could do to overcome each one.
(e)[6]
Do you think Yanis should alter how he motivates his chefs? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Executive summary section” …