Unit 2 Finance for Business Revision

Unit 2 Finance for Business Revision

What we will be doing:

• Retrieval Activity

• Unit 2 Finance for Business Revision

• Recap

Retrieval Activity

• How are you feeling?

• Name one thing you can remember from our last lesson

• Who Inspires you?

Unit 2 Finance for Business

Exam Revision

Multiple Select

(1) Identify one example of a variable cost for a sandwich shop.

• Paying Rent

• Till to record sales

• Heating and Lighting

• Purchase of Inventory (Sock)

Multiple Select

(2) Identify one example of Cash Inflow

• Stock purchases

• Electricity Payment

• Salaries Paid to employees

• Interest gained from savings

Open Ended

(3) Jeremy owns a small car repair business. In the last month he paid £1,245 for car parts.

He also paid an assistant mechanic £460 in wages.

His rent for the month was £3200.

Work out the monthly total cost for Jeremy's business?

Open Ended

(4) Sarah owns a small business selling plants.

The price of a plan is £4.50.

In the last month Sarah has sold 1,400 plants.

What is Sarah's revenue for the last month?

Multiple Select

(5) William is a self-employed cleaner.

He regularly buys cleaning materials.

William's cleaning materials are an example of which cost?

• Fixed Cost

• Direct Cost

• Indirect Cost

• Start-up Cost

Fill in the Blanks

(6) Aislyn runs a designer pottery business. She has worked out that she needs to sell 120 products to break-even.

Complete the sentence about Aislyn's business.

Aislyn's business will blank? if she sells less than 120 products.

(7) Anita's Antique Store

Anita buys items from online auctions. Anita sells these items in her shop for a higher price.

Her business is located on a quiet street and her overheads are average. Anita checks her monthly sales and costs for the first time and has found that she has made a loss.

She decides to move to a busier location.

Open Ended

(7a) Give two more actions Anita could make to avoid making a loss in the future?

Open Ended

(7b) Describe how moving to a busier location could prevent Anita from making a loss in the future

Multiple Select

(8) Identify two fixed costs for a beauty salon

• Salary for employee

• Laundry Expenses

• Sales of Make-up

• Rent for shop

• Purchase of Make-up sales

Sarah runs a small cafe

• She bakes many of the pastries herself

• The table shows Sarah's Income Statement (Profit and Loss) for the last 2 years

• This information helps to measure business performance

Open Ended

(9) Discuss whether Sarah should be pleased with the changes in the performance of her business?

(10) Azar wants to expand his business

He is thinking of using a bank loan to help with this expansion

Open Ended

(10a) Give two other sources of external finance

Open Ended

(10b) To support Azar's bank loan request he has been asked to produce an expenditure budget.

Explain one way an expenditure budget will help Azar secure the bank loan?

Recap

More to come this afternoon