Yanis runs a busy restaurant in the city centre. He has 4 skilled chefs and 6 workers employed in the restaurant. Every member of staff is on a part-time contract. The chefs receive a high hourly pay rate, but there are no bonuses. Yanis is concerned that too many chefs are leaving. He is considering other ways to motivate the chefs. Yanis would like to open another restaurant, but he is worried about issues associated with growth. As part of his business plan, he has drawn up a balance sheet. An extract is shown in Table 2. The current ratio was $1.2 : 1$ in 2016.
(a)[2]
Identify two principal sections, excluding finance, of a business plan.
(b)[2]
What does the term ‘non-current assets’ mean?
(c(i))[2]
Calculate the current ratio as at 30 September 2017.
(c(ii))[2]
Explain what the two current ratio results indicate about Yanis’s business.
(d)[6]
Identify two possible problems Yanis might face if he expands his business. Explain what he could do to overcome each one.
(e)[6]
Do you think Yanis ought to change how he motivates his chefs? 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: “Executive summary section” …