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CAIE IGCSE Business Studies 7.3. Business finance Question Bank

Practise defining business finance terms and calculating revenue, profit, working capital and profitability ratios from case data.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • calculate finance figures from tables, including revenue, profit and working capital
  • apply margin and ROCE formulae, then state final answers with working shown

Covered syllabus points

7.3.1—Revenue7.3.2—Gross profit7.3.3—Profit7.3.4—Working capital7.3.5—Profit margin7.3.6—Gross profit margin7.3.7—Return on capital employed (ROCE)

7.3. Business finance question 1

[Maximum number: 4]

TJM is a private limited company. It is a food retailer and has 450 shops. In 2021 TJM's revenue increased by $ 500 million. The Finance Director is analysing TJM's financial statements. An extract is shown in Table 2.1. The directors are planning to expand TJM by opening 20 new shops. TJM will have to carry out a recruitment and selection process for 400 new employees.

Table 2.1

Table 2.1

Question (a)

(a)

Define 'revenue'.

[ 2 ]

Question (b)

(b)

Calculate working capital. Show your working.

[ 2 ]

7.3. Business finance question 2

[Maximum number: 4]

RVC uses batch production to manufacture a large range of products including soap and shampoo. Many of the products are at different stages of the product life cycle. The Marketing Director has been reviewing some data for one brand of soap, as shown in Table 2.1. She said: 'Last year sales were 80000 units a week. I want to know the current level of profit and margin of safety.' The Marketing Director has to decide on a suitable extension strategy. The choice is between new packaging or targeting new markets.

Table 2.1

Table 2.1

Using Table 2.1, calculate the weekly profit. Show your working.

7.3. Business finance question 3

[Maximum number: 4]

TJK manufactures candles. Contributing to sustainable development is important to TJK. The business uses batch production in its factory in country X. The target market for TJK's products is females between 20 and 50 years of age. The Managing Director is reviewing TJK's financial data. An extract is shown in Table 3.1. He is also considering the benefits to a business of becoming a multinational company.

Table 3.1

Table 3.1

Question (a)

(a)

Define 'working capital'.

[ 2 ]

Question (b)

(b)

Calculate TJK's profit margin. Show your working.

Working:

Final answer:

[ 2 ]
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