A-Level Business: Finance and Objectives for Start-ups

This material trains the finance and objectives decisions a new or small business faces, content that sits in the first year of A level Business. For example, AQA A-level Business covers business objectives and the link between mission and objectives (section 3.1.1), forms of business and limited and unlimited liability (section 3.1.2), budgets and cash-flow forecasts (section 3.5.2), sources of finance including debt factoring, overdrafts, retained profits, share capital, loans and venture capital (section 3.5.3) and methods of improving cash flow (section 3.5.4). Pearson Edexcel covers internal and external finance, liability and cash-flow forecasts in topics 2.1.1 to 2.1.4 and business objectives and forms of business in topics 1.5.3 and 1.5.4.

The quiz works through invented start-ups. It matches a seasonal gap to an overdraft and a set of ovens to long-term finance, weighs a business angel's offer of money and expertise against a loss of ownership, works out what a debt factor pays now and what it costs, carries a closing balance forward through a two-month cash-flow forecast, and reads a forecast whose negative months are seasonal. It also covers an early-payment discount that brings cash in but costs profit, a sole trader facing unlimited liability, the case for a private limited company, crowdfunding as finance and as market research, a SMART objective and an objective that follows from a mission.

The material offers four formats. The quiz has twelve questions with full explanations. The flashcards hold the sources of finance, the liability rules, the cash-flow method and the SMART criteria. The written work has eight longer tasks: complete a three-month cash-flow forecast and advise the owner, recommend finance for three different needs, explain why a sole trader might incorporate, weigh crowdfunding against a bank loan, write SMART objectives for a hotel, and evaluate ways of improving cash flow, a choice between loans, angels and venture capital, and the value of a forecast. In the oral exam an examiner sets short invented situations, including a cash-flow calculation, and gives brief feedback at the end.

All businesses and figures are invented. The material is practice written by Zestly and is independent of any exam board.

• Match internal and external sources of finance to short-term and long-term needs
• Weigh debt against equity finance, including business angels, venture capital and crowdfunding
• Explain unlimited and limited liability and the choice between business forms
• Complete and interpret a cash-flow forecast, carrying closing balances forward
• Evaluate ways of improving cash flow and their effect on profit
• Write SMART objectives that follow from a mission

Practice material written by Zestly, based on the A level Business specifications, for example AQA A-level Business (7132) sections 3.1.1, 3.1.2 and 3.5.2 to 3.5.4 and Pearson Edexcel A level Business (9BS0) topics 1.5.3, 1.5.4 and 2.1.1 to 2.1.4.