Yanis owns a busy restaurant in the city centre. He employs 4 skilled chefs and 6 workers to serve in the restaurant. All employees are on part-time contracts. The chefs are paid a high hourly wage rate, but receive no bonuses. Yanis is worried that too many chefs leave. He is thinking of other ways in which he could motivate the chefs. Yanis wants to open another restaurant but is worried about problems linked to growth. He has prepared a balance sheet as part of his business plan. An extract is shown in Table 2. The current ratio was 1.2:1 in 2016. Table 2: Extract from balance sheet as at 30 September 2017 ($000) Non-current assets Current assets Current liabilities Non-current liabilities Identify two main parts (other than finance) of a business plan. Part 1: Part 2: What is meant by ‘non-current assets’? Calculate the current ratio as at 30 September 2017. Explain what the two current ratio results show about Yanis’s business. 1 8 Identify two possible problems for Yanis if he expands his business. Explain what he might do to overcome each problem. Problem 1: Explanation of how to overcome the problem: Problem 2: Explanation of how to overcome the problem: Do you think Yanis should change the way he motivates his chefs? Justify your answer. [ 1 8 0450_w17_qp_12 THEORY 2017 Paper 1, Variant 2 View
HRO manufactures children’s toys. It is a private limited company. The main objective of HRO’s shareholders is to increase profit. This might conflict with the objectives of other stakeholder groups, including its 30 suppliers. HRO’s Managing Director knows that market research can help when making marketing decisions. The Finance Director is preparing HRO’s statement of financial position. An extract is shown in Table 3.1. Table 3.1 Extract from HRO’s statement of financial position at 30 June 2024 ($000s) Non-current assets Current assets Current liabilities Non-current liabilities Define ‘non-current assets’. Calculate HRO’s current ratio. Show your working. Working: Final answer: State whether each of the following would be classified as a current asset or as a current liability. Trade receivables: Trade payables: Overdraft: Inventory: Explain one way the objective of HRO’s shareholders to increase profit might conflict with the objectives of each of the following stakeholder groups: Customers: Explanation: Suppliers: Explanation: Do you think the advantages to a business of using primary market research are greater than the disadvantages? Justify your answer. 0450_w24_qp_12 THEORY 2024 Paper 1, Variant 2 View