Finance

Which source of finance could be given to a business to create jobs in areas of high unemployment?

Which of the following is the correct formula to calculate the margin of safety from a break-even chart?

Which of the following is an advantage of trade credit for a business?

Using **Table 1**, calculate the gross profit margin. Show all workings.

**Item B: One Day Photography** Debbie's revenue can be unpredictable. She has received an average of two wedding bookings per week this year, but she has very few of these bookings for next year. As the wedding photography industry is very competitive, Debbie has decided to focus more on family photography. Her plan is to open a studio and upgrade her camera equipment. One of Debbie's friends is offering to lend her all the money but needs the full amount repaid within six months. Interest rates are currently low so Debbie is considering a bank loan. She could borrow the full amount and pay the money back in fixed instalments over five years. She would have to use her home as security for the bank loan. Identify one current asset of a business.

Debbie charges £180 for a family photography session. The cost to ODP for each session is £60. Using the information in **Table 2**, calculate how many sessions Debbie would need each week to equal the profit from two weddings. Show all workings.

Debbie is considering a bank loan to open a studio and upgrade her camera equipment, but she would have to use her home as security. This means that if she struggled to repay the loan the bank could force her to sell the house. Recommend whether Debbie should use a bank loan. Give reasons for your answer.

Using **Item D**, calculate the average rate of return for the new equipment if Emilios purchases it. State the formula for the average rate of return and show your workings.

Emilios is looking to maintain standards at the ice cream shop while reducing costs. Analyse one action Emilios could take to reduce its costs.