BTEC UNIT 2: FINANCE FOR BUSINESS - LA C D2

What are the two main ways in which businesses can increase profits?

• Increasing income and reducing expenditure

• Increasing expenditure and reducing income

• Increasing marketing and reducing sales

• Increasing staff and reducing products

What is the suggested method for businesses to be more successful?

• Increasing income and reducing expenditure

• Increasing taxes and reducing income

• Increasing liabilities and reducing assets

• Increasing debts and reducing sales

What advice for increasing business profits?

• Increasing income and reducing expenditure

• Increasing taxes and reducing income

• Increasing liabilities and reducing assets

• Increasing debts and reducing sales

What recommendation for financial analysis?

• Analyze financial statements and suggest actions

• Ignore financial statements

• Increase liabilities

• Reduce assets

What should a business do if it is making a loss according to the income statement?

• Increase marketing expenses

• Improve the situation

• Hire more employees

• Expand to new markets

What is the purpose of reserves in a balance sheet?

• To increase shareholders' funds

• To pay off long-term debt

• To invest in new technology

• To hire new staff

What should be done if working capital is low?

• Increase it by ensuring enough money in the bank

• Decrease marketing expenses

• Hire more employees

• Expand the business

What should be reduced if current liabilities are high?

• Current liabilities

• Marketing expenses

• Employee salaries

• Product prices

How is net profit enhanced?

• By increasing gross profit and reducing expenses

• By hiring more employees

• By expanding to new markets

• By increasing marketing expenses

What action should be taken if a company's cash flow is negative?

• Increase cash inflows and reduce cash outflows

• Ignore the cash flow statement

• Expand the business

• Increase liabilities