Edexcel A-Level Business A2 3.3.5 2b Ratio Interpretation Questions

Interpret changes in profitability, liquidity and gearing in the business context. Link the ratios to proposed actions, weighing financial benefits against demand and growth risks.

Syllabus
First assessment 2019
Course
Business XBS11/YBS11
Level
A2

Exam points

  • Interpret changes in profit margins when assessing a business’s proposed cost-cutting plan
  • Use liquidity and gearing ratios to assess financing pressure and proposed responses
  • Balance ratio evidence with demand and growth risks before judging a financial strategy

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