Business 7115 · O Level · Business finance: needs and sources

Business finance: needs and sources — practice question

(a)[8]

Explain two business objectives Andrew is likely to set for AAR.

(b)[12]

Consider the advantages and disadvantages of the three finance sources Andrew could use when he expands the business. Which source is best for Andrew to select? Justify your answer. • Bank loan • Business partner • Change to a private limited company and sell shares

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Increase profit - so there will be money available for reinvestment - no interest is paid, so it is cheaper

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