Business 0450 · IGCSE · Business finance

Business finance — practice question

(a)[8]

Explain how FO could make use of one internal source and one external source of finance as it grows.

(b)[12]

Assess the advantages and disadvantages to FO of using a wholesaler, retailer or selling direct to the customer to distribute its products. Which channel of distribution should FO use? 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: Retained profit - no interest charges to pay

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