5. Financial information and decisions
A section of Business Studies, 7115
Listing 10 of 51 questions
PJA make fashion clothing for 16-25 year olds. Many of its competitors are multinational companies. PJA produce new products every 3 weeks. All PJA’s products are made in a local factory because of import quotas. The Managing Director is reviewing PJA’s financial statements using ratio analysis. An extract is shown in Table 2.1. Table 2.1 Extract from PJA’s financial statements for 2020 Revenue ($m) Gross profit ($m) Profit ($m) 1.5 Current ratio 8% Return on Capital Employed (ROCE) Define ‘import quota’. Calculate PJA’s gross profit margin. Show your working. Outline one benefit and one limitation to PJA of developing new products. Benefit: Limitation: 1 3 Explain two ways PJA’s managers can use ratio analysis. Way 1: Explanation: Way 2: Explanation: Do you think multinational companies always benefit the countries they operate in? Justify your answer. [ 1 3
7115_s21_qp_11
THEORY
2021
Paper 1, Variant 1
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Questions Discovered
51