Meeting consumer protection laws – Homework 1
1. What is meant by ‘sales of goods legislation’?
2. What is a meant by ‘trade descriptions legislation?
3. Why is legislation important to both businesses and consumers?
4. Identify two features of the Sales of Goods Act.
5. ‘Compliance costs can be expensive’. Explain this statement.
6. Why are there laws to protect consumers in place in the UK?
How to improve cash flow – Homework 2
1. What is the difference between a cash inflow and a cash outflow?
2. Give three examples of cash inflows to a business.
3. Explain the purpose of de-stocking.
4. Identify and explain one long term solution that might improve a firm’s
cash flow.
5. Outline three possible ways that cash flows out of a business.
Extension Question (A*-B)
6
‘Delaying the payment of invoices is good for the cash outflow.’ Explain
what is meant by this and how it may affect a business.
How to improve profit – Homework 3
1. Give the formula for calculating profit.
2. If a firm is making a loss (costs are greater than revenue) it needs to try
and get back into profit. Outline two ways that a firm might try and do
this.
3. How might cutting the cost of investment affect a business?
4. Give the formula for calculating revenue.
5. Travel Baggage Ltd. sells 6350 rucksacks. Each rucksack sells for £14.75.
What is the total revenue for Travel Baggage Ltd. from the sale of the
rucksacks?
6. Making some staff redundant is a way of reducing costs and improving
profit. Give two drawbacks of making staff redundant.
7. A firm charges £100 for a new pair of trainers and sells 1000 pairs. It wants
to boost its sales volumes and sales revenue so it cuts the price to £75 and
sells 1,250 pairs. Was this a wise decision? Explain your answer.
8. Identify one way in which a firm can increase its volume of sales.
Extension Questions (A*-B)
9. Explain why cutting back on marketing to reduce costs may not be the
best course of action for some firms.
10. The new car market in the UK saw sales fall by 24.8% in May 2009. This was
the 13th consecutive month of falls in sales. Discuss one strategy that
could boost sales, using car dealers as an example.
Financing growth – Homework 4
1. What is meant by the phrase ‘financing a business’?
2. Identify three possible external sources of finance.
3. What is meant by the phrase ‘internal sources of finance’?
4. Identify three possible internal sources of finance.
5. Which of the following sources of finance involves payment of interest –
sale of assets, bank loan, retained profit, share issue? Explain your answer.
6. Outline how trade credit works and how this can be a source of finance
for a business.
7. Outline two considerations that a business will need to take into account
when choosing a source of finance.
9. Give one advantage and one disadvantage to a business of selling
assets to raise finance.
Extension Question (A*-B)
10. A business has analysed its cash flow forecast for the year which has
shown that that there will be a shortfall in June only. It wishes to cover this
shortfall with some form of finance. What might be the best source of
finance for this shortfall? Explain your answer.
Motivation theory – Homework 5
1. What is meant by the term ‘hierarchy of needs’?
2. Identify two reasons that a firm would want motivated workers.
3. State the five areas of Abraham Maslow’s Hierarchy of Needs.
4. Why do workers need to have their physiological needs attended to?
5. How can a business help to satisfy workers self-esteem needs?
6. ‘Cost is one disadvantage of a business developing staff motivation.’
Explain this statement.
Extension Question (A*-B)
7. A firm decides to issue its workers with new contracts that guarantee that
they will be given six months’ notice if the firm decides to make
redundancies. Explain how this might help satisfy their safety needs.
8. Flow production often involves workers performing their jobs in a repetitive
fashion on a production line. The jobs they do tend not to change on a
day-to-day basis. Explain which of their needs may not be met because
of this.
9. What is meant by the term ‘motivation’?
10. Using examples, explain the fact that one factor that affects motivation
can affect two or more areas within Maslow’s Hierarchy of Needs.