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Wjec a level business component 2 discussion

Thought I'd make this because I cannot seem to find anyone doing the new A-level business course from WJEC...
Any predictions ?
I'm thinking Critical Path Analysis and maybe the old style 14 mark ratio question :/
How are people feeling for this exam tomorrow ?
GOOD LUCK !

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Reply 1

DhamiR

I have this exam tomorrow also, do you know of any useful material for last minute revision?

Reply 2

jakebonnington

i really hope there's investment appraisal and ratios as i do accounting so i'm confident in those areas but they were both in the specimen so idk if they'll both come up again

lots of calculations would be nice like decision making models and maybe a written on SWOT analysis or Porter's 5 forces?

Reply 3

jakebonnington

http://www.eduqas.co.uk/qualifications/business/as-a-level/WJEC%20Eduqas%20A%20level%20Business%20SAMS%20(29%2010%2014)%20Formatted.pdf?language_id=1 here's the link to the specimen papers for all 3

Reply 4

jakebonnington

sure

ROCE - for ROCE to be good you want it to be high as it measures profitability in relation to the size of the business and shows the return investors get on their investment.
Current - a good current ratio is 2:1 because a business needs to have enough current assets (inventory, money from customers, bank) to be able to pay their short term debts (suppliers, loan repayments). if it's less than this then the business may suffer cash flow issues.
Acid Test - this is basically the current ratio but without inventory as it is the least liquid asset in current assets so you want it to be around 1.5/1:1. this means acid test measures the ability to pay debts through liquid assets such as trade receivables
Gearing -you want gearing to be less than 50% as it measures risk so if the business has a higher gearing investors may be cautious to invest which makes it hard to raise finance
ARR - this is basically the average net return you get on the investment by comparing average profit per annum with the initial cost of the investment. you want to choose the project with the higher arr as this means you get a higher return each year on the investment
Discounted Cash Flow - this measures net present value which is the value of future money so it takes into account of things like inflation. you want to choose the project with the higher net present value as this is how much cash flow the business gets after paying back the initial cost. do not choose a project with a negative net present value.

i hope this helped good luck tomorrow

Reply 5

jakebonnington

yes having a low gearing is also negative as it means that if there are rising profits shareholders may get a lower return than if it was high.

how did you find component 1?

Reply 6

jakebonnington

yeah the wording was weird on some of the questions

i loved the pricing strategy and cash budget ones but i didn't like that consumer protection one i ********ted the whole time :lol: