BGR is a private limited company, and it runs 6 cinemas in towns in different areas. Effective internal communication matters to BGR. The Finance Director has been studying BGR’s accounts, and an extract is given in Table 4.1. BGR intends to open another cinema and will need to employ 10 new staff. The new cinema will cost $8m. The Finance Director must choose whether BGR should issue new shares or take a bank loan to fund the expansion.
(a)[2]
Define the term ‘cost of sales’.
(b)[2]
Calculate the values of X and Y.
X:
Y:
(c)[4]
Identify four stages in the recruitment process.
Stage 1:
Stage 2:
Stage 3:
Stage 4:
(d)[6]
Explain two reasons why effective communication could matter to BGR.
Reason 1:
Explanation:
Reason 2:
Explanation:
(e)[6]
Do you think a limited company should finance expansion by issuing new shares rather than taking a bank loan? 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: “The cost of making or buying the goods sold in a period” …