Level 2 Business Unit 2 Part A

1: Identify one way a business makes money

• Paying back a loan
• Selling products to customers
• Spending money on a new factory
• Buying materials to make products

3: Jasmine has a sweet shop. Her total costs for last year were £87,927 Her total revenue for last year was £134,259 Calculate the profit that Jasmine’s sweet shop made.

• £46,332.00
• £222,186.00
• £46,602.00
• £31,256.00

5: Alex owns a van that he uses to deliver sandwiches to customers. In which section of his “statement of financial position” (balance sheet) should Alex’s van be shown?

• Net Assets
• Working Capital
• Current Assets
• Fixed Assets

7: Identify one internal source of finance.

• Leasing a piece of machinery
• Bank loan taken to pay for a shop
• Sale of fixed assets no longer used
• Offering shares for sale to investors

11) Simone sold 430 scarves on her stall last month. Calculate Simon’s margin of safety

• 130
• 230
• 330
• 430

State the meaning of the term “loss”

Explain two benefits to a business of preparing a cash flow forecast

Explain Two benefits to a business of using budgeting and budgetary control

Caroline is a gardener growing fruit and vegetables.

She sells these at a monthly farmer’s market.

She has produced an income statement (profit and loss account)

She has found she is making a negative net profit

Below is an extract from Caroline’s income statement.

Explain three ways Caroline can improve her gross profit

Which is the best football team in the world?

• Hull City

• Real Madrid

• Bayern Munich

• Liverpool