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AQA GCSE · Question 03.5 · Business in the real world
Using data from Table 2, describe how the information indicates STC has experienced growth.
Using data from Table 2, describe how the information indicates STC has experienced growth.
How to approach this question
1. Look at Table 2 for a measure of size or output.\n2. Compare the figure for 2016 with the figure for 2020.\n3. Quote the data and state that the increase shows growth.
Full Answer
The data indicates STC has experienced significant growth because its output/sales volume has increased from 50,000 units in 2016 to 450,000 units in 2020 (1 mark). This is a nine-fold increase in the number of items sold, which is a clear measure of business growth (1 mark).
Business growth can be measured in several ways, including by revenue, profit, number of employees, or, as in this case, by sales volume (the number of units sold). Table 2 shows the "Output/sales (volume)" for STC. In 2016, the volume was 50,000 units. By 2020, this had increased dramatically to 450,000 units. This substantial increase in the quantity of goods sold is clear evidence that the business has grown significantly in size and scale.
Common mistakes
✗ Using data from the "Average unit cost" row. A fall in cost is not a measure of growth.\n✗ Not quoting the data from the table. You must use the numbers to get the marks.
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