Questions

Q1.
 
Define the term short-term finance.
(1)
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(Total for question = 1 mark)
 


Q2.
 
Define the term 'variable costs'.
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(Total for question = 1 mark)
 


Q3.
 
Define the term fixed costs.
(1)
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(Total for Question = 1 mark)
 


Q4.
 
Haji Biriyani is a restaurant group located in Dhaka, Bangladesh. The business was started in 1939 by Haji Mohammed Hossain. The restaurant group now has three restaurants in Dhaka. It is famous for selling Biriyani, a mixed rice dish containing mutton and spices such as black peppercorns and cinnamon.
State one fixed cost that Haji Biriyani may have to pay.
(1)
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(Total for question = 1 mark)
 


Q5.
 
Haji Biriyani is a restaurant group located in Dhaka, Bangladesh. The business was started in 1939 by Haji Mohammed Hossain. The restaurant group now has three restaurants in Dhaka. It is famous for selling Biriyani, a mixed rice dish containing mutton and spices such as black peppercorns and cinnamon.
In 2015, Haji Biriyani's total costs were 11 000 000 Tks. By opening a fourth restaurant the restaurant group estimates that its total costs will increase by 20%.
Calculate the estimated total costs if Haji Biriyani opens its fourth restaurant.
(2)
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(Total for question = 2 marks)
 


Q6.
 
Haji Biriyani is a restaurant group located in Dhaka, Bangladesh. The business was started in 1939 by Haji Mohammed Hossain. The restaurant group now has three restaurants in Dhaka. It is famous for selling Biriyani, a mixed rice dish containing mutton and spices such as black peppercorns and cinnamon.
Figure 2 shows the fixed and variable costs of making one biriyani meal at Haji Biriyani's main restaurant in Dhaka.
 
Calculate the total costs of making 10 biriyani meals.
(2)
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(Total for question = 2 marks)
 


Q7.
 
Tata Motor Company began trading in 1868, and is now part of a large group of companies that is estimated to be worth $100 billion. Tata Motor Company manufactures a wide range of cars, buses and trucks. It is India's largest maker of vehicles with manufacturing centres in many countries including Korea, Italy and the UK.
One of the main aims of Tata Motor Company is to produce goods that the public want and need. It is currently working on electric cars that are more environmentally friendly. Tata Motor Company plays an active role in community development such as building schools, houses and investing in the health and welfare of local people.
(Source adapted from: https://www.tatamotors.com/about-us/)
In December 2016 the global vehicle sales for Tata Motor Company were 89,841.
In December 2017 the global vehicle sales figure was 23% higher.
Calculate the global vehicle sales for Tata Motor Company in December 2017. You are advised to show your working.
(2)
 
 
(Total for question = 2 marks)
 


Q8.
 
Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK.
NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop is served to the visitors staying overnight at the farm.
NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and reducing the use of electricity.
Analyse the benefits to NOF of using personal savings to expand its product range.
(6)
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(Total for question = 6 marks)
 


Q9.
 
When Cadbury was founded in 1842, there may have been times when it needed an overdraft.
Analyse why Cadbury may have needed to take out an overdraft.
(6)
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(Total for question = 6 marks)
 


Q10.
 
Hans Raj Mahajan Worldwide (HRMW) is an established manufacturer of sports equipment and sportswear in India. It is a family-run business, which started trading in 1925 and since then has grown to become an established business. Its products are exported across the world. These include footballs, boxing gloves, hockey sticks and sports clothing.
HRMW employs staff to design the products it manufactures. The aim is to add features so that the products are better than any others on the market.
Research and development (R&D) of tennis racquets before they are produced is essential and can be expensive. To cover these costs HRMW is considering the following two options:
Option 1: retained profit
Option 2: selling assets.
Justify which one of these two options HRMW should use.
(9)
 
(Total for question = 9 marks)