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EnglandBusiness

3.6 Finance

4 dot points across 4 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How do you judge whether a business is doing well financially?

How to analyse financial performance using the income statement, gross and net profit, profit margins, and the use of financial data to make decisions and judge success, including the limitations of financial information.
A focused answer to AQA GCSE Business 3.6.4, covering the income statement, gross and net profit, profit margins, using financial data for decisions, and the limitations of financial information.
8 min answer →

Why can a profitable business still run out of money?

The meaning and importance of cash flow, the difference between cash flow and profit, how to construct and interpret a cash-flow forecast, and the causes and solutions of cash-flow problems.
A focused answer to AQA GCSE Business 3.6.2, covering the meaning and importance of cash flow, the difference between cash flow and profit, constructing and interpreting a cash-flow forecast, and solving cash-flow problems.
8 min answer →

How do you calculate the key financial figures every business uses?

The key financial terms and calculations: revenue, fixed and variable costs, total costs, profit, the break-even point and margin of safety, and how these figures support business decisions.
A focused answer to AQA GCSE Business 3.6.3, covering revenue, fixed and variable costs, total costs, profit, the break-even point and margin of safety, and how to calculate them.
9 min answer →

Where do businesses get the money they need?

The main sources of finance for a business, the difference between short-term and long-term and internal and external sources, and the advantages and disadvantages of each, including the suitability for different situations.
A focused answer to AQA GCSE Business 3.6.1, covering the main sources of finance, short-term versus long-term and internal versus external sources, and the pros, cons and suitability of each.
8 min answer →