Elton runs his business as a sole trader. He sells specialist sports clothing and equipment, including baseball and hockey items. This is a niche market. He began the business 5 years ago, and it has stayed small. Having a broad range of inventory matters. Elton has been reviewing how well his business is performing financially. In 2018, the profit margin was 35%. Table 3.1 shows an extract from the accounts.
(a)[2]
Define ‘sole trader’ in business terms.
(b)[2]
Calculate the values of X and Y.
(c)[4]
State four factors that may affect the quantity of inventory a business holds.
(d)[6]
Explain one advantage and one disadvantage for Elton of trading in a niche market.
(e)[6]
Do you think Elton should be satisfied with the financial performance of his business? Justify your answer using appropriate ratios.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A business owned by a single individual” …