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...
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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