Unit 2 Finance for Business Revision

Unit 2 Finance for Business Revision

More Revision

Multiple Select

(11) Identify one source of revenue for a business.

• Rent Payable

• Purchase of Materials

• Rent Received

• Purchase of Equipment

Open Ended

(11a) What is the formula for net profit?

(12) Fatima's Bike Repair

Fatima runs a bike repair shop, this is her break-even chart

How many bikes to repair to break-even?

Which line is the arrow pointing at, which cost?

Open Ended

How many bikes to repair to break-even?

Open Ended

Which line is the arrow pointing at, which cost?

Multiple Select

(13) Which statement describes a current liability for a manufacturing business?

• A bill that the business has to pay within a year?

• A bill that the business has more than a year to pay?

• A cost linked directly to the manufacturing of a product?

• A cost not linked directly to the manufacturing of a product?

Pascal's Manufacturing

Pascal is about to set up his own small manufacturing business.

He has to produce a Cash-Flow Forecast.

One benefit of this is knowing when he hasn't got enough money to pay the bills.

Open Ended

State one other benefit of a Cash-Flow Forecast?

Open Ended

Explain one why using a cash-flow forecast to identify times when the manufacturing business would not have enough cash to pay bills will help Pascal?

Open Ended

Outline one reason why net profit is more important than gross profit for Alex?

Open Ended

Give Two other limitations to break-even analysis

Open Ended

Break-Even Analysis applies to only one product. Why is this a limitation?

Open Ended

Outline one way a material budget will help with Racel's business and its performance

The End