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    what did everyone put for the last question? was it the right decision to become an entrepreneur??
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    There is no right or wrong answer to it thats why they ask you to discuss it. I said that he was right to give up his secure £25k job a year to become an entrepreneur because to be a successful entrepreneur you have to take risks. When Ed spoke to his friends who are also 'successful' entrepreneurs and also qualified electricians, who told Ed that there would be a steady rise in demand for his services over the first 5 year period and that he can achieve an excess of 40k a year, meaning that with his high quality of work that he does (because he instantly got a contract from a building company as they were impressed from the quality of his work) he is on the right line. To conclude in the short term it was perhaps not the best move to become a soul trader as he is currently living on a 18k a year wage which means that he has to reduce his standard of living, but obviously the main objectives of business are always long term and aking this in mind he can achieve 40+k a year which and he can grow his own business. Making money and expanding will motivate Ed to get out of bed and make profit and actually go to work.

    Something along those lines, I obviously expanded etc
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    Okay, what did u get for the limited liability question? Got me a bit confused
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    (Original post by JohnCAB)
    Okay, what did u get for the limited liability question? Got me a bit confused
    Well essentially his uncle was being a little bit of a douche aha
    Limited liability means that you don't have to sell you personal goods (house, car etc) to raise finances. So because he has a 3 month credit account with his uncle who can spply electrical goods he might take advantage of it too much and when he goes into bankruptcy and he has to get finances to pay off the debts it would mean that he would not need to sell his personal good to do so, instead just sell the current business stock etc to raise the finance so this is an obvious reason why his uncle would not like it.

    Don't count on me for it though because I didn't get the uestion the first time and in the last 5 minutes answered it to what I thought was correct
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    (Original post by kkeviss)
    Well essentially his uncle was being a little bit of a douche aha
    Limited liability means that you don't have to sell you personal goods (house, car etc) to raise finances. So because he has a 3 month credit account with his uncle who can spply electrical goods he might take advantage of it too much and when he goes into bankruptcy and he has to get finances to pay off the debts it would mean that he would not need to sell his personal good to do so, instead just sell the current business stock etc to raise the finance so this is an obvious reason why his uncle would not like it.

    Don't count on me for it though because I didn't get the uestion the first time and in the last 5 minutes answered it to what I thought was correct
    Limited liability is where the owner of the business is only responsible for the amount that they invested, and not the debts of the business e.g. if the business went bankrupt, the owner would not have to pay it off, but would lose the amount they invested (£20,000 personal savings or however much it is in this case)

    This means that if Ed's business went bust and got into debt, he would be unable to pay his uncle for the equipment (as it was on trade credit), which would disrupt his uncle's cash flow.

    This is pretty much what I wrote except obviously developed it more
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    Guys please help.
    For the FC i thought £360 earned per job is a contribution not price. So i did 360+115= 475 <-Price. Then 14400/475=31 Jobs done. Then simply Contribution * 31-1800. Two things i doubt. 360 was the price. And 14400/475 should have been rounded up to 30 (FC=9000)
    How many marks do you think i will get for what i have done? Ty
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    (Original post by LOST131100)
    Guys please help.
    For the FC i thought £360 earned per job is a contribution not price. So i did 360+115= 475 <-Price. Then 14400/475=31 Jobs done. Then simply Contribution * 31-1800. Two things i doubt. 360 was the price. And 14400/475 should have been rounded up to 30 (FC=9000)
    How many marks do you think i will get for what i have done? Ty
    You might get a mark or two but not full marks because the answer was £8000. Besides if it was the amount of contribution then it woukd also be wrong because its all variable costs already added together so you would not need to add the extra £115 you added on
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    Has anyone found the unofficial mark scheme?? thanks
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    For the last question about entrepreneurs, in the first paragraph, I wrote mostly about non financial factors that would mean bad news for his business (Such as periods of low demand during winter months) and the fluxuations in forecasted demand. But then discussed about he would have flexibility within the market to be creative unlike his current job

    The second I wrote only about financial facotrs such as he's losing a secure 25k job (with room for promotion), as well as risking 25k of his own personal finance. However, on the other hand, he will have a chance of earning more (maybe 40k in 5 years), something that a promotion may not provide.

    Concluded that even though financial risk is high, he's better off if he feels better by being creative and a chance (albeit slim) of an increased wage is something to keep in mind and therefore I think he was better off.
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    for the calculation question I defined fixed cost then worked out the answer fully but on the case study page then wrote the answer in the question. I was going to come back to write my workings out in the actual space and clearer but ran out of time.
    I got £8000 but will I be penalised.
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    (Original post by tomsas)
    for the calculation question I defined fixed cost then worked out the answer fully but on the case study page then wrote the answer in the question. I was going to come back to write my workings out in the actual space and clearer but ran out of time.
    I got £8000 but will I be penalised.
    Were you supposed to define fixed costs as well within that question? It that why it was worth 6?
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    (Original post by kevinchan1)
    Were you supposed to define fixed costs as well within that question? It that why it was worth 6?
    In the question I defined fixed cost and put my answer just my working out is ont the space on the case study page :-S
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    (Original post by tomsas)
    In the question I defined fixed cost and put my answer just my working out is ont the space on the case study page :-S
    I forgot, whoops

    To be honest, because that question didn't directly give you anything to work it out (using only the formula Revenue - (V.C + F.C) = Profit), I would've thought they would give you marks for at least trying to figure out those numbers and 'Rearranging' the formula to get it.
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    You had to firstly find the total revenue which was 14400 i think

    Then times 115 by 40 which got you 4600
    Minus 4600 from 14400 gets you 9800

    That got you the fixed costs+ the profit

    To find the fixed costs you had to deduct the profit he made

    This would get you with £8000

    Thats what i got and how i did it, thoughts?
 
 
 
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