PJA manufacture fashion clothing for 16-25 year olds. Several of its rivals are multinational companies. PJA launch new products every 3 weeks. Because of import quotas, all PJA products are made in a local factory. The Managing Director is examining PJA’s financial statements with ratio analysis. An extract is given in Table 2.1.
(a)[2]
Define the term ‘import quota’.
(b)[2]
Calculate PJA’s gross profit margin and show your working.
(c)[4]
Outline one benefit and one limitation for PJA of developing new products.
(d)[6]
Explain two ways PJA’s managers may use ratio analysis.
(e)[6]
Do you think multinational companies always help the countries where they operate? 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 cap on the number of goods that may enter a country” …