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AQA A Level business Unit 5 Finance Questions And Answers . $7.99   Add to cart

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AQA A Level business Unit 5 Finance Questions And Answers .

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AQA A Level business Unit 5 Finance Questions And Answers . 100% TRUSTED Answers, guidelines, workings and references. crowdfunding - ANS-(external) raising money for a project or venture by obtaining many small amounts of money from many people venture capital - ANS-Money that is invested in s...

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  • July 11, 2023
  • 5
  • 2022/2023
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AQA A Level business Unit 5 Finance
Questions And Answers .

, AQA A Level business Unit 5 Finance
Questions And Answers 2023 Update
crowdfunding - ANS-(external) raising money for a project or venture by obtaining many
small amounts of money from many people

venture capital - ANS-Money that is invested in small-medium companies that are
perceived as having great profit potential. Finance is provided in exchange for equity (a
share)

internal source of finance - ANS-- retained profit

capital expenditure - ANS-investment spending on fixed assets such as the purchase of
land

calculation for break even - ANS-fixed costs/contribution per unit

calculate net cash flow - ANS-total inflows - total outflows

calculate the closing balance - ANS-Opening balance + net cash flow (net cash flow =
inflows - outflows)

what is contribution per unit? - ANS-Selling price - variable cost per unit

calculate total contribution - ANS-no. of units sold X contribution per unit

margin of safety - ANS-difference between real output level + break even point

what does total contribution do? - ANS-looks at profit made on products and how it
contributes to cover costs

give a way to change the break even point - ANS-increase/decrease fixed costs

what is break even? - ANS-the point where revenue is equal to total costs

contribution - ANS-all money made from each unit after variable costs are paid. This
capital is then used to pay off fixed costs. Any capital left over becomes profit.

give 2 limitations of break even - ANS-- very complex for a wide product portfolio
- based on forecasted data which may be unreliable or change

give 2 benefits of break even - ANS-- helps assess the predicted impacts of changes in
production levels.
- helps support application for financial help e.g. loans




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