AQA Business Year 1 Activity Worksheets

Name: Anthony Bren

3.5.1 Setting financial objectives

1. A business has a financial objective of achieving a minimum return on investment of 12%.

It spent £150 000 on capital equipment. Other financial results include:
● Gross profit £36 000

● Expenses 40% of gross profit

Did it achieve its objective? Use calculations to support your answer.

36000/100 * 40 = 14400, 14400 is expenses. 36000-14400 = 21600

150000/100 * 12 = 18000. This is the financial objective of their minimum return.

21600 > 18000, therefore achieving its objective. They achieved a 14.4% return on investment.

2. Which one of the following is an example of short term debt?

a) Shareholders’ capital
b) Venture capital
c) Bank overdraft
d) Bank loan

Explanation:

c) Overdraft. Options a and b are not forms of debt, but rather forms of investment into a
company in order for ownership privileges of the firm. Bank loans are typically discussed to be
paid back over a long term, over perhaps a year or multiple years. Overdrafts are meant to be paid
back typically after being used, and are always expected to be paid back shortly after.

3. Use the following words and numbers to complete the table below.
● Gross profit

● £45 000

● Revenue

● Interest and taxation

● £85 000

● Expenses

● £33 750

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AQA Business Year 1 Activity Worksheets

● Profit for the year

Revenue £300 000

Cost of sales £85 000

Gross Profit £215 000

Expenses £170 000

Operating profit £45 000

Interest and taxation £11 250

Profit for the year £33 750

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