9609_w22_qp_22
A paper of Business Studies, 9609
Questions:
2
Year:
2022
Paper:
2
Variant:
2
Login to start this paper & get access to powerful tools
1
Friendly Fit (FF) FF is a public limited company that owns a popular social media and fitness app. The app was launched five years ago and now has over three million users worldwide. The app allows users to upload and share pictures and short films of their favourite exercises. There are many other features which have been developed as the app has gained popularity. The app can be downloaded for free and users can access basic features without paying any money. However, to access all the features of the app, customers must pay a monthly fee of $10. FF also receives income from advertising revenue. Table 1.1 shows cost and revenue data for the app for the last two years. Table 1.1: FF’s costs and revenue for the app for 2021 and 2020 ($m) ($m) Revenue from monthly fees 1.6 1.4 Revenue from advertising 1.4 1.8 Total costs 2.0 2.0 Every month, FF carries out a survey of a sample of users to research new features which may be added to the app. The sampling process is outlined in . A stratified sample based on age. Those who respond are given one month’s free access to all the features of the app. Survey sent through the app to 50 000 current users. 15 000 users usually respond to the survey each month. : FF’s sampling process Define the term ‘customers’ (line 6). Explain the term ‘public limited company’ (line 1). Refer to Table 1.1. Calculate FF’s profit margin for the app in 2020. Explain one way in which FF could use profit margin data. Analyse two ways in which FF can increase the value added to its app using the operations process. Evaluate the limitations of FF’s sampling process.
3. Marketing (AS Level)  →  3.2. Market research
10. Finance and accounting (A Level)  →  10.2. Analysis of published accounts
Open
2
Cartoon Costumes (CC) Ava is an entrepreneur. After leaving school she set up CC as a private limited company and she owns 100% of the shares. CC sells ‘dressing up’ costumes for children using ecommerce. Each costume is based on popular TV and movie characters that appeal to children. CC owns a large sewing machine which Ava uses to create the costumes. Each costume is made from brightly coloured materials which CC purchases in bulk. Ava has to produce more inventory to grow the business. This can be expensive so Ava is thinking of using crowdfunding to finance this growth. CC has completed its second full year of trading. An extract from the statement of financial position is in Table 2.1. Table 2.1: Extract from CC’s statement of financial position at 31 August $(000) $(000) Non-current assets Current assets Current liabilities Non-current liabilities Reserves and equity Until recently CC operated from Ava’s house. However, two months ago she rented a shop in a shopping centre. Ava wants to recruit a salesperson for the shop so that she can concentrate on designing and making costumes. Details about the two best applicants are in Table 2.2. Ava must now decide who to employ. Table 2.2: Details about the two best applicants Liu Ahura Date of birth 12 February 2004 19 September 1975 Employment history • 2 years working part-time in a small retail food shop • 10 years as an actor • 10 years as manager of a large clothing shop • 5 years unemployed Highest qualifications A Levels in Business, Design Technology and Mathematics University degree in Acting Personal attributes • Good customer service skills • Likes working with other people • Highly motivated • Good administrative skills • Works well on their own Career ambitions • Would like to go to university • Would like to own a business in the future None Define the term ‘inventory’ (line 7). Explain the term ‘entrepreneur’ (line 1). Refer to Table 2.1. Calculate the change in CC’s working capital between 2021 and 2022. Explain the distinction between revenue expenditure and capital expenditure for CC. Analyse one possible advantage and one possible disadvantage to CC of using crowdfunding to finance growth. Refer to Table 2.2 and other information. Recommend which person Ava should employ. Justify your recommendation.
10. Finance and accounting (A Level)  →  10.1. Financial statements
5. Finance and accounting (AS Level)  →  5.1. Business finance
Open