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

Business finance: needs and sources — practice question

(a)[8]

Explain four factors that a business should take into account when selecting a source of finance for expansion.

(b)[12]

Consider the benefits and drawbacks of the following two ways SSE could distribute its products in new markets in other countries. Which option should SSE choose? Justify your answer. • Sell directly to customers by using SSE’s website • Sell through large sports retailers in other countries

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Legal form of business - if the business is a company, then share issue becomes an option; if the business is unincorporated, then owner’s savings may need to be used because it cannot issue shares to raise finance

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI