CAIE IGCSE Business Studies 7.3 Business Finance Questions

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.

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.

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

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.

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.

Define 'revenue'.

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.

Define 'working capital'.

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.

Calculate TJK's profit margin. Show your working.

Working:

Final answer:

D2G is a driving school. Mattan started D2G 3 years ago to teach people to drive a car. As the business has been successful Mattan plans to buy a new vehicle. He has been analysing D2G's income statement. An extract is shown in Table 3.1.

Mattan wants to understand the difference between profit and cash. He also wants to know how an increase in competition and changes in the business cycle might affect D2G.

Calculate D2G's gross profit margin. Show your working.

GTB is a business which operates in the tertiary sector．It owns 5 cafés selling food and drinks． The business uses social media as its method of promotion．The Finance Manager，Moeen，is analysing GTB＇s financial statements．An extract is shown in Table 2．1．He is considering ways to improve GTB＇s profit margin．Moeen knows there are other users that are interested in the accounts of a business．

Calculate GTB＇s Return on Capital Employed（ROCE）．Show your working．

Working：
Final answer：