Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
Jonathon operates as a sole trader. He runs a shop that sells office equipment, such as printers. In order to boost sales, Jonathon gives customers 4 weeks to pay for the office equipment. Jonathon believes his business will probably stay small. He recognises that controlling cash flow matters for his business, and he has drawn up a cash flow forecast. A section is shown in Table 2.1.
(a)[2]
Identify two alternative ways to measure the size of a business.
(b)[2]
Calculate the values of X and Y.
(c)[4]
Outline two reasons, apart from finance, why Jonathon’s business is likely to stay small.
(d)[6]
Explain two reasons why Jonathon’s business might experience a cash flow problem.
(e)[6]
Do you think the benefits of operating as a sole trader business are greater than the drawbacks? 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: “(Value of) capital employed” …