CPK runs 5 sports clubs. Each club provides a variety of activities, including gym and yoga classes. To keep its 60 employees well-motivated, CPK uses job enrichment. Having the correct marketing mix is essential to CPK’s success. The Finance Director is examining CPK’s financial statements. Table 3.1 shows an extract. He wants to find out how a rise in taxation could influence CPK’s business.
(a)[2]
Define the term ‘non-current assets’.
(b)[2]
State two separate elements of the marketing mix.
(c)[4]
Outline two ways in which CPK could be affected if taxation increased.
(d)[6]
Explain one possible effect on CPK of the change shown for each ratio in Table 3.1: Change in current ratio; Change in profit margin.
(e)[6]
Do you think job enrichment is a better means of motivating employees in a business than profit sharing? 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: “Resources that a business owns and uses for more than one year” …