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Business Studies(9707) Post your doubts here

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Can some1 plz help me out?? I want to know how long do we have to write the answers.e.g of 10 marks because i don't have any teacher and i m studying by myself so i can't understand how long should i write for 10 or 8 marks in ppr 2?
In m.s they have not told properly so plz some1 help me... :(
THANX IN ADVANCE
for 10 to 8 mrks u may rite 1 or 1 and a half side of d page ....depends on d size of ur handwriting too..(big/small)
 
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Explain the usefulness to a business of using break even analysis.

i have a general idea but i would like to know from your point of view.
BE? that is the firm will be able to know after how much it will start making profits. so that will help in operations planning and you could say during a recession they will know how much of units (margin of safety) they can reduce prodution and still cover costs

that is my point of veiw :p
 
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Explain the usefulness to a business of using break even analysis.

i have a general idea but i would like to know from your point of view.

Break even analysis:

  • Shows the quantity of output produced in which the business will avoid making a loss (the break even point)
  • Shows the margin of safety (the difference between the current production above the BE point and the BE point itself, used to determine how "far" the business is out of "danger")
  • Can reflect the change in cost/operation on the BE and potential profitability.
  • Can, to some extent, helps the business set a price for their product (mark-up pricing)
 
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can someone plz lemme know what does "ARA" in the MS stand for..??:confused:

I am not really am certain in wordings what ARA means, it is "Award Reasonable ... <something>", most probably Analysis, or something of that sort.

Point is, it is emphasizing that the points written in the markscheme is NOT the ONLY answer to the case. Any answers, as long as it is reasonable, appropriate and relevant to the case must also be awarded marks accordingly.
 
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i HATE the MS of ppr 2 :mad: ...what they write only they get it...!! Weirdos...!! it's so tough...they don't even explain properly what they want us to wright...!! it's soooo confusing :cry:


They cannot give a proper markscheme, because there is no way to write a proper one :p The possibility of answers are simply almost infinite, and they are merely writing the rough guideline as to what they expect will be the relevant answers. Bear in mind that in paper 2 it's context is much broader than in P1, allowing you to be more creative with your answer, provided that your answers are appropriate and relevant to the context of the case. As a result they left the "ARA" at the bottom to put an emphasis to the examiners that professional judgment should be used whenever marking those questions.
 
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◘ improve cash flow
1)bank overdraft
2)sale of assets-leaseback
3)low credit terms to suppliers
4)delay payment 2 suppliers or employees
5)dont purchase raw material or machinery
6)short term loans
7)debt factoring




◘ usefulness of cash flow forecast
• byshowing period of -ve cash flow -> plans can b put in place to provide additional ffinance ,eg arranging for a bank over draft or ingecting more owners capital
• if -ve cash flow is too great -> plans made for reducing or cuting down on purchace of raw material or machinery
• or by not making sales on credit -only cash
• new business proposals never progress beyond the initial stage unless investers and bankers have acess to cash flow forecast




◘ limitations of CFF
> mistakescan be made preparing revenue and cost forecast drawn up by inexperianced enterpreneurs
> unexpected cost increases- inaccuricies in forcast
> wrong asumtion made in estimting the sales of the business based on poor M.R




◘ causes of CFF problems
♣ lack of planning (financial)
♠ poor credit control
♠ allowing customer long delay in paying off debts
♠ xpanding too rapidly
♠ unexpected events


AngelicBeauty ty for d short notes!
 
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They cannot give a proper markscheme, because there is no way to write a proper one :p The possibility of answers are simply almost infinite, and they are merely writing the rough guideline as to what they expect will be the relevant answers. Bear in mind that in paper 2 it's context is much broader than in P1, allowing you to be more creative with your answer, provided that your answers are appropriate and relevant to the context of the case. As a result they left the "ARA" at the bottom to put an emphasis to the examiners that professional judgment should be used whenever marking those questions.
oh jazakaAllah...
 
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