Business 0450 · IGCSE · Business finance

Business finance — practice question

(a)[8]

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

(b)[12]

Using Appendix 3 and the other information, consider the strengths and weaknesses of the two new meals AF could select to produce. Which meal should AF choose? Justify your answer with suitable calculations.

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