5.4. Sources of finance and commercial performance
A subsection of Commerce, 7100, through 5. Aids to trade that support commerce
Listing 10 of 135 questions
Fig. 2 gives a summary of the financial situation of two wholesalers. B & B Produce Ltd Trading Secrets Ltd $m sales net profit current assets current liabilities long-term liabilities fixed capital $m sales net profit current assets current liabilities long-term liabilities fixed capital Fig. 2 Use the information given in Fig. 2 to help you to answer the following questions. Explain two functions of wholesalers. Explain what is meant by fixed capital. State two examples of long-term liabilities. Showing your working, calculate the working capital of: B & B Produce Ltd; Trading Secrets Ltd. Why is working capital important to any company? Which of the two companies would be more pleased with its financial situation? Give reasons for your answer.
7100_s11_qp_23
THEORY
2011
Paper 2, Variant 3
View
Fig. 2 shows some of the sources of finance available to limited companies. Sources of Finance Short-term and medium-term Long-term Internal finance cash at the bank retained profits sale of fixed assets External finance overdraft trade credit hire purchase leasing bank loan mortgage debentures shares Fig. 2 Use the information in Fig. 2 to help you to answer the following questions. Identify, from Fig. 2, the most suitable source of finance for each of the following: to meet daily expenses to buy additional stock to buy a new truck to move part of the business to another country. What are the advantages to a limited company of issuing shares rather than using debentures? Discuss whether or not it is better to use internal sources of finance rather than external sources of finance. Give reasons for your opinion. Many limited companies operate in the global economy. Using examples, explain why communication is important to them when trading both at home and abroad.
7100_s12_qp_23
THEORY
2012
Paper 2, Variant 3
View
Questions Discovered
135