Applied Business unit 3: June 2015

So, I thought i should create a form room (since there isnt one created) for those who are taking BS03 exam on May 18th 2015.

The case study: 'A Flying Start'.

Questions are:
a) Investigate the possible sources of finance available to an entrepreneur planning a business start-up that requires a large capital investment.
(b) Research the major issues that an entrepreneur might take into account before deciding whether or not to go ahead with a business start-up.

What are your thoughts???

For part A) selling share or a bank loan can be the two sources it may ask you to compare.

For Pat B) Consider factors such as the risk involved in starting the business, since it costs £3m to start-up. Limited liability of the business, competition etch.

Hope that helped.

For Part A- what you've said is right but as for the conclusion, you need to choose one source of finance and explain why it is the suitable one.

As for Part B- I would say do 3 for and 3 against starting the business as it is usually a 16 mark question and consider some of the points that i have already mentioned in my original post.

If anyone else finds anything helpful please let me know.

From what i have been told you should choose one source of finance in the conclusion, as it would be a hassle by borrowing from a number of different ones. But you can use a number of source if you want-i don't see why can't as long as you can explain your answer clearly.

Now for part B, i would start off by talking about Sheena and her skills e.g shes a qualified pilot. Then i would go onto to do 3 fors of going ahead with the business such as; it being a good opportunity for Sheena as she wants to be an entrepreneur and this can be her chance, she has support from her father and she has created a business plan to help with the business planning. Then i would do 3 against it, such as it being a risk in terms of not raising enough money for the venture, talk about competition in Surrey and lastly her lack of experience as being an entrepreneur and then do an overall conclusion and give my own opinion about it.

please can i offer you both advice. question 1 does not require an evaluationon. see last year exam mark scheme.. old papers did but not been the case for last few sittings.eth for the last question better to make fewer arguments - but detailed and extended by use of connectives. so - 1. decide whether you agree or disagree with the question. do 2 arguments for your reason eg if you think she should go ahead 2 paragraphs to justify why, then one paragraph for the opposite view , round off with a conclusion. You always need both sides in order to have a weighted conclusion to quality for E3 evaluation..

Hi i am really struggling with something on the profit question
lets say in the exam they put sheenas 50k a year salary as a pilot (assuming she doesn't quit) in a profit question,
if it was a profit question would you count it as her revenue???? or does that count as a cost ??????
dumb question because I'm confused
and you wouldn't count her loan as a cost/revenue would you

Hello People, I see everyone is stressing haha ;P


Thought I can help out a bit with some questions that my teacher gave us to do (She told us past papers are pointless because they don't link in to our case study)


1) Explain 2 other sources of finance that are available to Sheena to finance the new business. For each of the above explain 2 advantages and 1 disadvantage FOR SHEENA. (10 marks)


2) Sheena believes that the seasons could cause significant cashflow problems. Explain 3 solutions that Sheena could consider to help with cash flow shortages - discuss 1 advantage and 1 disadvantage for each. (10 marks)


3) Explain 3 benefits that Sheena migh receive as a result of drawing up a business plan (8 marks)


4) Describe two MAJOR RESOURCES which Sheena will need to manage correctly in her first year of trading. (8 marks)


5) Explain 3 possible benefits that Sheena might gain from drawing up budgets for her first financial year. (9 marks)


6) Sheena has carried out a break-even analysis. Discuss the possible value of break-even analysis in helping her to make a decision whether or not to set up her business. (10 marks)


7) Suggest 2 ways in which Sheena could use business software to help her manage her new business. (6 marks)


8) Sheena has decided to operate her business as a private limited business. Analyse the case for and against this structure. (10 marks)


9) Explain one benefit that Sheena might receive from using variance analysis to monitor the performance of her expenditure. (5 marks)


10) Drawing on your pre-examination research, analyse two items of information that might be included in Sheena's business plan. (6 marks)


12)Sheena has to decide whether or not to launch her business. Use all the information available to you to consider the case for and against starting this business and advice her on whether or not to go ahead. you should justify your decision.


*For question 12 and the last question you can always use the SWOT analysis (Strengths, weaknesses, opportunities and threats) to justify your decision -> Think that's the best way to be honest.


**You have to remember about her lack of experience in business BUT that she has good IT skills (Hence the software question -> It can also be included in the resources question)


***My teacher is an examiner so she knows what can pop up and what the papers look like so I guess that them questions can be useful to everyone!


Goodluck!

I was wondering what sort of calculation questions, you think might come up? Like break-even, profit and loss or budgeting maybe? idk

There's not a budgeting calculation question is there? Like how are supposed to calculate a budget lol?