Month: January 2020

Happy Covers was started by Lucy in 2017. The business hires out chair covers and ribbons for weddings, school proms and other events.

Which ONE of the following are sources of added value for Lucy’s business?

Select ONE answer:

1. Meeting legal requirements
2. Improving quality
3. Reducing prices
4. Higher raw material costs

Show the workings to arrive at your answer, and explain and justify your reasons:

Happy Covers was started by Lucy in 2017. The business hires out chair covers and ribbons for weddings, school proms and other events.

Which ONE of the following are sources of added value for Lucy’s business?

Select ONE answer:

1. Meeting legal requirements
2. Having a range of designs
3. Reducing prices
4. Higher raw material costs

Show the workings to arrive at your answer, and explain and justify your reasons:

Happy Covers was started by Lucy in 2017. The business hires out chair covers and ribbons for weddings, school proms and other events.

Which ONE of the following is an example of a calculated risk for Lucy’s business?

Select ONE answer:

1. Sales have increased by 10 % in the past 12 months
2. Expenses have increased by 15% in the past year
3. Profit for the year has decreased by 3.5%
4. There is a 30% chance of his business failing

Show the workings to arrive at your answer, and explain and justify your reasons:

Happy Covers was started by Lucy in 2017. The business hires out chair covers and ribbons for weddings, school proms and other events.

In Lucy’s second year of trading the interest rate increased from 1.5% to 3%.

Identify ONE possible effect of this change in the interest rate on Lucy’s business?

Select ONE answer:

1. Worsening cash-flow from higher customer bankruptcies
2. Greater competition from rivals
3. Increased variable costs
4. Reduced fixed costs

Show the workings to arrive at your answer, and explain and justify your reasons:

Happy Covers was started by Lucy in 2017. The business hires out chair covers and ribbons for weddings, school proms and other events.

In Lucy’s second year of trading the interest rate increased from 1.5% to 3%.

Identify ONE possible effect of this change in the interest rate on Lucy’s business?

Select ONE answer:

1. Higher loan repayments
2. Greater competition from rivals
3. Increased variable costs
4. Reduced fixed costs

Show the workings to arrive at your answer, and explain and justify your reasons: