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Finance

Official AQA GCSE Business 8132 content on sources of finance, cash flow, financial calculations and financial performance.

At a glance

4

Topics

25

Objectives

8132

Spec

Business

Subject

AQAGCSEBusiness8132

Topics

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Sample objectives

What this unit covers

  • Sources of finance: Explain internal and external sources of finance, including family and friends, retained profit, share issue, loans or mortgages, selling assets, overdrafts, trade credit, hire purchase and government grants.
  • Sources of finance: Evaluate suitable sources of finance for new and established businesses.
  • Cash flow: Explain how and why cash flow forecasts are constructed.
  • Cash flow: Distinguish cash from profit.
  • Cash flow: Evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance.
  • Financial terms and calculations: Distinguish variable costs, fixed costs and total costs.
  • Financial terms and calculations: Explain revenue, costs, profit and loss.
  • Financial terms and calculations: Explain investment projects such as investment in machinery, buildings and vehicles.
  • Financial terms and calculations: Calculate average rate of return for business investment projects.
  • Financial terms and calculations: Explain break-even output.
  • Financial terms and calculations: Interpret break-even charts.
  • Analysing the financial performance of a business: Calculate net profit margin to help assess financial performance.
  • Analysing the financial performance of a business: Calculate gross profit margin to help assess financial performance.
  • Analysing the financial performance of a business: Distinguish assets and liabilities.
  • Analysing the financial performance of a business: Explain the importance of financial statements for assessing business performance and making decisions.
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