1

TJM is a private limited company. It is a food retailer and has 450 shops. In 2021 TJM’s revenue increased
by $500 million. The Finance Director is analysing TJM’s financial statements. An extract is shown in table
below. The directors are planning to expand TJM by opening 20 new shops. TJM will have to carry out a
recruitment and selection process for 400 new employees.

Explain two possible reasons why profit might be important to TJM.

Reason 1: .................................................................................................................................................

..................................................................................................................................................................

Explanation: ............................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

Reason 2: .................................................................................................................................................

..................................................................................................................................................................

Explanation: ............................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]

Page 1 of 12
IGCSE Class X Business Studies Finance HHW
2 VCG manufactures high-quality briefcases and travel bags. VCG has 50 skilled production workers in its
factory. VCG is planning to expand by building a second factory. Different locations are being considered.
The Managing Director is reviewing VCG’s financial statements. An extract is shown in the table below.
Both internal and external stakeholder groups of VCG are interested in this information.

Identify two financial statements a public limited company is legally required to publish each year.

Financial statement 1: ..............................................................................................................................

..................................................................................................................................................................

Financial statement 2: ..............................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]

Page 1 of 12
IGCSE Class X Business Studies Finance HHW
3 D2G is a driving school. Mattan started D2G 3 years ago to teach people to drive a car. As the business has
been successful Mattan plans to buy a new vehicle. He has been analysing D2G’s income statement. An
extract is shown in the table below. Mattan wants to understand the difference between profit and cash. He
also wants to know how an increase in competition and changes in the business cycle might affect D2G.

Outline, with reference to D2G, the difference between profit and cash.

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]

Page 1 of 12
IGCSE Class X Business Studies Finance HHW
4 Izaak owns a small fish restaurant. He employs two chefs (cooks) and three workers who serve in the restaurant.
He has been trying to increase added value to improve profits. Izaak has been looking at the business accounts
as shown in the Table. He thinks fixed costs are too high. Izaak has received a number of complaints about
food and service. He knows he must improve quality but cannot decide the best way to do this.

Identify and explain two ways Izaak could increase revenue.

Way 1:.......................................................................................................................................................

..................................................................................................................................................................

Explanation:.............................................................................................................................................

..................................................................................................................................................................

Way 2:.......................................................................................................................................................

..................................................................................................................................................................

Explanation:.............................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]

Page 1 of 12
IGCSE Class X Business Studies Finance HHW
5
TJM is a private limited company. It is a food retailer and has 450 shops. In 2021 TJM’s revenue increased
by $500 million. The Finance Director is analysing TJM’s financial statements. An extract is shown in table
below. The directors are planning to expand TJM by opening 20 new shops. TJM will have to carry out a
recruitment and selection process for 400 new employees.

Extract from TJM’s financial statements for 2021 ($m)

Non-current assets 400

Current assets 300

Current liabilities 240

Profit for the year 200

Calculate working capital. Show your working.

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]

Page 1 of 12
IGCSE Class X Business Studies Finance HHW
6 VCG manufactures high-quality briefcases and travel bags. VCG has 50 skilled production workers in its
factory. VCG is planning to expand by building a second factory. Different locations are being considered.
The Managing Director is reviewing VCG’s financial statements. An extract is shown in the table below.
Both internal and external stakeholder groups of VCG are interested in this information.

Extract from VCG’s 2021 financial statements ($)

Revenue 2 000 000

Current assets 300 000

Current liabilities 250 000

Shareholders’ equity (funds) 800 000

Explain one way each of the following stakeholder groups might use VCG’s accounts:

Shareholders: ...........................................................................................................................................

..................................................................................................................................................................

Explanation: ............................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

Suppliers: .................................................................................................................................................

..................................................................................................................................................................

Explanation: ............................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [6]

[Total: 6]

Page 1 of 12
IGCSE Class X Business Studies Finance HHW
7 Kala always wanted to be an entrepreneur. She used to work for a business which downsized its workforce
5 years ago. She then decided to start up CHL. She produced a business plan which helped her obtain finance.
Kala now designs customised sports clothes for women. Kala sells these products directly to customers using
e-commerce. She has a loyal customer base of 25-40 year olds. However, Kala is worried about increased
competition in this niche market. One idea she has is to target different market segments.

Outline two reasons why Kala’s business might need finance.

Reason 1:..................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

Reason 2:..................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]

8 What is meant by ‘capital employed’?

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]

9 Identify two reasons why a business might need working capital.

Reason 1:..................................................................................................................................................

..................................................................................................................................................................

Reason 2:..................................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]

Page 1 of 12
IGCSE Class X Business Studies Finance HHW
10 Ella has just left college and wants to start up her own business. She has designed a new bicycle light with
a safety feature not found in any rival products. Ella knows obtaining finance will be difficult. She plans to
have the lights produced in another country. Each light will cost $8 to produce. Ella cannot decide whether
to use price skimming. She said: ‘I have received orders for 300 lights and I have not even started promoting
them’. Ella wants to be a successful entrepreneur.

Information on possible promotion options for Ella’s bicycle light.

Option 2: Advertise in specialist

Option 1: Set up her own website
magazine

$500 for web page to show product

Cost information specifications and contact details. $300 for full page colour advertisement.

For extra $750 website would allow One of the most popular cycling
Other information customers to order online. magazines in the country.

Identify and explain two reasons why obtaining finance might be difficult for Ella’s business.

Reason 1:..................................................................................................................................................

..................................................................................................................................................................

Explanation:.............................................................................................................................................

..................................................................................................................................................................

Reason 2:..................................................................................................................................................

..................................................................................................................................................................

Explanation:.............................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]

11 What is meant by ‘trade receivables’?

..................................................................................................................................................................

..................................................................................................................................................................

..................................................................................................................................................................

.................................................................................................................................................................. [2]

[Total: 2]

Page 1 of 12
IGCSE Class X Business Studies Finance HHW
12 Rafiq is the Operations manager at a small factory. The business makes a range of soft drinks using batch
production. Last year Rafiq successfully introduced just-in-time inventory control, based on an idea from
one of the 40 employees. As the business is planning to expand, Rafiq thinks it would be a good idea to
change to flow production.

Table: Income statement for 2015 ($000)

Identify and explain two possible reasons why profit is important for this business.

Reason 1:..................................................................................................................................................

..................................................................................................................................................................

Explanation:.............................................................................................................................................

..................................................................................................................................................................

Reason 2:..................................................................................................................................................

..................................................................................................................................................................

Explanation:.............................................................................................................................................

.................................................................................................................................................................. [4]

[Total: 4]

Page 1 of 12
IGCSE Class X Business Studies Finance HHW
13. NFF is a fishing business which catches fish and other seafood. It is in the primary sector. NFF has
6 fishing boats and 36 employees. Contributing to sustainable development is important to NFF. 1 Jennifer,
the owner, has prepared NFF’s statement of financial position. An extract is shown in Table below.
NFF has a high level of debt. Jennifer wants to know about internal sources of finance the business can use.

Page 2 of 12
IGCSE Class X Business Studies Finance HHW
14

Page 3 of 12
IGCSE Class X Business Studies Finance HHW
15

Page 4 of 12
IGCSE Class X Business Studies Finance HHW