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EnglandBusiness

4. Finance

6 dot points across 6 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How many units must a business sell before it starts to make a profit?

Break-even analysis: the concept of break-even, contribution, the calculation of break-even output, the margin of safety, interpreting a break-even chart, and the usefulness and limitations of break-even analysis.
A focused answer to the Eduqas GCSE Business C510 content on break-even analysis, covering the concept of break-even, contribution, the break-even formula, the margin of safety, reading a break-even chart, and the uses and limits of break-even.
12 min answer →

How does a business make sure it never runs out of cash?

Cash and cash flow: the meaning of cash flow, the cash flow forecast, the calculation of net cash flow and opening and closing balances, the causes and effects of cash flow problems, and how to improve cash flow.
A focused answer to the Eduqas GCSE Business C510 content on cash and cash flow, covering the cash flow forecast, net cash flow and closing balances, the causes and effects of cash flow problems, and ways to improve cash flow.
12 min answer →

How does a business measure how well it is really performing?

Measuring financial performance: the calculation and interpretation of gross profit margin and net profit margin, the use of profit margins to judge performance, and the average rate of return as a method of investment appraisal.
A focused answer to the Eduqas GCSE Business C510 content on measuring financial performance, covering the gross and net profit margins, how to interpret them, and the average rate of return as a method of investment appraisal.
12 min answer →

How does a business work out whether it is making a profit or a loss?

Revenue, costs, profit and loss: the calculation of revenue, fixed, variable and total costs, profit and loss, the importance of profit, and the difference between gross and net profit.
A focused answer to the Eduqas GCSE Business C510 content on revenue, costs, profit and loss, covering how to calculate revenue, fixed, variable and total costs, profit and loss, and the difference between gross and net profit.
12 min answer →

Where does a business get its money, and how does it choose the right source?

Sources of finance: internal and external sources, short-term and long-term finance, the features of each source, and how to choose the most appropriate source for a given purpose.
A focused answer to the Eduqas GCSE Business C510 content on sources of finance, covering internal and external sources, short-term versus long-term finance, the features of each, and how to match the source to the purpose.
12 min answer →

What does the finance function do, and why is cash not the same as profit?

The role and purpose of finance: what the finance function does, the importance of finance to a business, the difference between cash and profit, and the consequences of poor financial management.
A focused answer to the Eduqas GCSE Business C510 content on the role and purpose of finance, covering what the finance function does, why finance matters, the difference between cash and profit, and the consequences of poor financial management.
11 min answer →