Business 7115 · O Level · Business finance: needs and sources
Business finance: needs and sources — practice question
AllPlay is a toy shop that Vince established in 2012. Every year, Vince has achieved his business objectives, including earning a profit in 2017. All of AllPlay’s products are imported. Vince plans to grow the business by opening a second shop so that he can offer a broader product range. The price of purchasing the shop is $20 050. A bank loan is one possible source of finance. Vince’s bank manager will expect to examine AllPlay’s income statement and other financial records.
(a)[2]
What does the phrase ‘business objectives’ mean?
(b)[2]
Calculate the values of X and Y.
(c)[4]
Identify and explain one benefit and one drawback for AllPlay of importing its goods.
(d)[6]
Identify and explain two ways in which the bank could use AllPlay’s financial documents.
(e)[6]
Do you think a bank loan is Vince’s best source of finance? Justify your response.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A specific target or aim that a business intends to reach” …