Month: July 2020

Lucy was fed up with taking orders from other people at work. She wanted personal satisfaction and financial security so decided to set up as a sole trader selling indoor plants using modern gardening techniques.

After a successful 24 months trading on the internet from home she wanted to expand the business.

Lucy needed to raise £35 000 to buy a nursery and buy gardening equipment.

Which ONE of the following is the MOST LIKELY reason why Lucy decided to set up as a sole trader?

Select ONE answer:

1. She will benefit from limited liability.
2. She could raise finance from selling shares.
3. It would involve greater risk.
4. To have greater control within the business.

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

A business has the following cash flow information for one particular month:

• Opening balance: £5 000
• Cash inflow: £7 000
• Cash outflow: £14 000

What is the closing balance at the end of this month?

Select ONE answer:

1. – £12 000
2. – £2 000
3. £9 000
4. £16 000

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

A business has the following cash flow information for one particular month:

• Opening balance: £5 000
• Cash inflow: £7 000
• Cash outflow: £14 000

What is the net cash flow for the business at the end of this month?

Select ONE answer:

1. – £16 000
2. – £7 000
3. £12 000
4. £26 000

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

Which ONE of the following documents is used in the recruitment process?

Select ONE answer:

1. Business Plan.
2. Person Description.
3. Application Form.
4. Cash Flow Forecast.

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

Which ONE of the following documents is used in the recruitment process?

Select ONE answer:

1. Business Plan.
2. Job Advert.
3. Person Description.
4. Cash Flow Forecast.

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