Exam code: 7132
Syllabus Edition
First teaching 2023
Last exams 2027
Which of the following statements is false?
Profit is a financial target for all businesses.
Profit is a measure of performance in Elkington’s triple bottom line.
Profit is a reward for risk-taking.
Profit is a source of finance.
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Which one of the following best describes the purpose of business activity?
To produce as many goods and services as possible
To keep costs as low as possible for the owners
To transform resources into goods and services that meet customer needs and add value
To provide employment for people in the local area
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A brewery transforms malt, hops and barley into beer. It also produces compost, which it sells to local farms.
Which one of the following correctly classifies the compost?
An input to the transformation process
A by-product of the transformation process
The added value created by the transformation process
A fixed cost of the transformation process
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Which one of the following is a corporate objective rather than a mission statement?
To enrich people's lives with programmes and services that inform, educate and entertain
To be the brand with the greatest appeal and breathtaking design
To offer well-designed home furnishings at prices as many people as possible can afford
To increase annual subscription renewals by 12% during the third quarter of 2027
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What is meant by the term 'corporate objective'?
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Fenwood Leisure operates three holiday parks. Bookings have fallen sharply following a national travel restriction, and the business is now focused on staying open.
Explain why survival is likely to be Fenwood Leisure's main business objective.
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Rowanbank Nursery is a forest activity centre for pre-school children. It was set up by a former teacher who is a keen environmentalist.
Explain one non-financial objective Rowanbank Nursery is likely to set.
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Harlow Cycles is a small bicycle manufacturer. Its owner wants to buy a second assembly machine but is reluctant to take out a bank loan.
Explain one reason why profit is important to Harlow Cycles.
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Table 1 shows monthly trading data for Brackenfield Bakery.
Calculate:
Brackenfield Bakery's monthly sales revenue
Brackenfield Bakery's monthly total costs.
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Cottingley Prints reported a gross profit of £180,000 last year, but its profit for the year was only £22,000.
Explain what the difference between these two figures suggests about Cottingley Prints.
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Meldon Ceramics hand-paints each piece of pottery it sells and packs it in a branded gift box. Its plain, unpainted pottery sells for £8 a piece, while the hand-painted version sells for £26.
Analyse how Meldon Ceramics adds value to its products.
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Analyse the possible tensions between Thornbury Wholefoods' corporate objectives for 2027 and its mission statement.
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Evaluate the decision by Kirkstall Textiles to set a single revenue objective for 2027.
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Evaluate the view that profit maximisation should be the most important objective for all businesses.
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