AllPlay is a toy shop founded by Vince in 2012. Every year, Vince has achieved his business objectives, including making a profit in 2017. AllPlay brings in all of its products from overseas. Vince plans to grow the business by opening a second shop so that he can offer a broader selection of products. Buying the shop will cost $20 000. A bank loan is one possible source of finance. Vince’s bank manager will want to examine AllPlay’s income statement, together with other financial documents.
(a)[2]
What does the term ‘business objectives’ mean?
(b)[2]
Calculate X and Y.
(c)[4]
Identify and explain one advantage and one disadvantage to AllPlay of importing its products.
(d)[6]
Identify and explain two ways in which the bank might use AllPlay’s financial documents.
(e)[6]
Do you think a bank loan is the best source of finance for Vince to choose? 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: “A statement of a specific target that a business works towards” …