NFF is a fishing business that catches fish and other seafood, so it operates in the primary sector. It owns 6 fishing boats and employs 36 workers. NFF places importance on helping to achieve sustainable development. Jennifer, who owns the business, has drawn up NFF’s statement of financial position. An extract appears in Table 1.1. NFF has a high level of debt, and Jennifer wants information about internal sources of finance that the business could use.
(a)[2]
Define what is meant by ‘primary sector’.
(b)[2]
Calculate NFF’s current liabilities and show your working.
(c)[4]
Outline two internal sources of finance that NFF could use.
(d)[6]
Explain two possible problems for NFF arising from having a high level of debt.
(e)[6]
Explain two ways a business in the primary sector could help sustainable development. Which way do you think is best? 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: “Businesses/firms whose activities involve extracting raw materials” …