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Ilford County High School Economics & Business Department

Year 10Introduction to small businesses

Homework BookUnit 1.3

Business Idea into Practice Name and class My benchmark My achievement

The following pack contains the homework questions which you will be expected to complete as part of this Topic within Unit 1.1. Each section will have a deadline date which you must meet. Your teacher will collect all booklets on this date, mark the work and give you with feedback on your progress and identify those areas which you need to improve in and strategies to help raise achievement.

Complete your homework on time. Do your best. If you have difficulties, come and get support at ‘Homework

Lunch Time Club’ If you score less than 50% or if your work is unsatisfactory, you

will be expected it to improve to acceptable level of standard.After completing your work BE PROUD OF YOURSELF

Department of Economics and Business

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Homework due on: ___________. Marks: /13

Chapter 13: Objectives when starting up and chapter 14: Qualities Shown by entrepreneurs.

1. Make a list of financial and non financial objectives,(Survival, personal satisfaction, profit, helping others, independence and control, financial security, challenge, wealth)Financial:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.Non-financial:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. (8)

2.Match the following:Quality shown by entrepreneur Example of qualityPersuasion Preparing production schedule

for the next 4 weeks.Initiative Talking to the supplier and

getting some discount on raw materials.

Luck Ordering extra stock in the hope that sales will increase shortly

Risk Taking Employing the worker who turns out to be more efficient and more skilled than expected.

Planning Following the loss of an important customer, deciding to prioritise getting more orders.


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(5)

My Performance :

What Went Well (WWW): Tidy and well organised work. Submitted on time. Good effort. Good/excellent detail, if applicable Any other ---

Even If Better (EBI): If read well. If work was more organised Any other--

Student comments: Techer’s comments: _________________ has / has not submitted his work on time and it is _______________________________ piece of work.

Marks: My Targets:

Standard of work Acceptable Unacceptable

Action taken: More time offered Department detention Any other action --


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Homework due on: _______________. Marks: /28

Chapter 15: Estimating revenues, costs and profits

1. Explain the difference between the sales revenue and sales volume.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. (4)

2. Write the formulae.Total Revenue: ------------------------------------------------------------.Total Cost: -----------------------------------------------------------------.Variable cost per unit: --------------------------------------------------.Fixed cost per unit: ------------------------------------------------------.Profit/Loss: ----------------------------------------------------------------. (5)

3. Select the correct type under each category:(rent, mortgage with fixed interest, wages of daily workers, salary, electricity bills, rates, raw material expenses, fuel, insurance, advertising)Fixed cost: ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.Variable cost: ------------------------------------------------------------------------------------------------------------------------------------------------------------------------


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----------------------------------------------------------------------------------------------------------------------------------------------.(11)

Usha Hills started her new business last month. Home Angles offers a cleaning service for busy people in the town where Usha lives. She had to raise £20,000 to set up her business – to buy two vans, cleaning equipment and materials and for marketing. She turned down an offer of an interest-free loan from her mother and borrowed £15,000 from the bank. Usha has one employee and her business has already achieved sales of cleaning 75 homes a month and she expects a further rise in sales. She is confident that her business has made a profit in its first month and has gathered together details of the business’s costs and revenues. Usha has managed her business’s cash flow carefully and has not needed to use her overdraft.

Monthly costsFixed costs £750Variable costs per home cleaned £20RevenueSelling price £32Sales 75 homes

1. Calculate the following figures for Usha’s business for the first month of trading:

(i) Total costs-----------------------------------------------------------------------------------------------------------------

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(ii) Revenue-----------------------------------------------------------------------------------------------------------------

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(4)

With an inheritance from his father, Nigel Gilpin set up a business at his home to produce and sell honey. Nigel gave up a well-paid job to start his business. At first, he did not think that his sales were high enough to make a profit, but since then he believes that his business has become profitable. Nigel has gathered together his costs and revenues and is about to calculate his business’s profits for the past year – or is it a loss? Nigel thinks that if his business has made a loss over the year the answer is easy: increase the price of a jar of honey. If he does this, he thinks his business would be certain to make a profit.

Variable costs per jar of honey £1.00Annual fixed costs £1,500


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Selling price per jar of honey £2.25Sales over the year 2,500

1. Using the figures above, calculate Nigel’s profit or loss for the year

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(4)

My Performance :




Marks: My Targets:




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Homework due on: ___________ Marks: /24

Chapter 16 Forecasting Cash flows

1. Why do businesses forecast cash flow? -----------------------------------------------------------------------------------. -----------------------------------------------------------------------------------. -----------------------------------------------------------------------------------.

(3)2. Four factors influencing cash flow. ---------------------------------------------------------------------------. ---------------------------------------------------------------------------. ---------------------------------------------------------------------------. ---------------------------------------------------------------------------. (4)

3. Read the following extract and fill in the gaps in the table: Magdi and Dimitri moved to England in 2005. They quickly realised that there was a gap in the market providing translation services to businesses who wanted to sell their goods and services in Eastern European countries. As a result, they set up their business, Specialist Translation Services (STS), to meet that demand.Magdi and Dimitri are fluent in several languages, including English, so services that STS could provide were checking business letters, reports and translating sales brochures STS is able to charge a high hourly rate but the big businesses who are its main customers are very slow to pay. This is making it difficult for STS to pay its own bills on time as it suppliers insist that it pays straight away. Magdi and Dimitri are worried, however, if they take action against their customers, they will lose their business.Most of STS’s current work comes through word-of-mouth recommendations. STS is considering using e-commerce and developing a website, similar to its competitors. The business might also replace its telephone helpline with the internet as its method of communicating with customers. This would allow STS to provide a better customer service facility for the increasing number of international customers it now has.


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1. Magdi has just produced STS’s cash flow forecast for the next six months in order to plan when the business can afford to develop its website.

July£

August£

September£

October£

November£

December£

IncomeSales 4000 3000 2000 2000 5000 6000

Total Income 4000 3000 ? 2000 5000 6000Expenses

Materials 300 200 200 ? 600 700Salaries 3000 3000 3000 3000 3000 3000

Web development

0 0 2000 0 0 0

Other 500 500 500 500 500 500Total Expenses ? 3700 5700 4000 ? 4200Net Cash 200 (700) (3700) (2000) 900 1800Balance bought forward

4000 4200 3500 (200) ? (1300)

Balance carried forward

4200 3500 ? (2200) (1300) 500

( ) indicates a negative amount (6)

4. Importance of planning:Get -----------------------------------------------------------,Ensure -------------------------------------------------------,Thoughtful -----------------------------------------------------------------,Investigate ------------------------------------------------------------------------------------------------------------------ andTrack ---------------------------------------------------------------------------. (4)5. Define the following terms:

Cash flow, Inflow, Outflow, Opening balance, closing balance, net cash flow, cash flow forecast.

(7)


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My Performance :




Marks: My Targets:



Homework due on: ____________. Marks: /24

Chapter 17: The Business Plan

1. Define the term ‘ business plan’. Explain the purpose of the business plan. (4)_________________________________________________________________________________________________________________________________________________________________________________


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______________________________________________________________________________________________________________________

2. PROJECT ON THE BUSINESS PLAN:

Write your notes:

(20)My Performance :




Marks: My Targets:


Action taken: More time offered Department detention


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Any other action --

Feedback on Project on the business plan:1=low 5= high

Content Score Comments

Introduction: Detailed?

Appropriate?

Definition/s?

Details on each part of business plan

Appropriate?

Detailed?

QWC?

Business vocabulary used?

Application to selected business

Well applied?

Clear?

Well analysed?

Presentation and structure

Clear?

Organised?

Overall Response

(Teacher)

EBI:

Student’s Comments Targets for improvement:


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Homework due on: _____________ Marks: /28

Chapter 18 Obtaining Finance

1. Write Definitions:Short term finance, long term finance, Shares, Personal Savings, Venture Capital, Retained Profit, Share Capital, Loan, Mortgage, Dividend, Leasing, Overdraft facility and Factoring.WRITE in your exercise books.

(14)

2.Peter Miller is only 19 but has set up his own recording studio called Haven in a small village in Cumbria. Peter turned down several jobs offers after university to start his business. He is a very skilled musician, but needed help to start his business. In particular, Peter had to raise £25,000. The finance was needed to pay for a year’s rent on a suitable building, to buy equipment and to pay for advertising. Peter asked his family to lend him £12,500 and also managed to gain a small government grant (£2,500). He decided to take out a bank loan for the rest, preferring not to have an overdraft. He found it very difficult to persuade a bank to lend him money as he had not drawn up a business plan.

1. Define the term ‘overdraft’.

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(2)

2. Describe two organisations that might have helped Peter to start his business

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(4)

3. Explain why Peter might have chosen to take out a bank loan.

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(4)4. Can you suggest to take equipment on leasing? Explain your answer.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________. (4)

My Performance :



Student comments: Techer’s comments: _________________


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has / has not submitted his work on time and it is _______________________________ piece of work.

Marks: My Targets:



MY OVERALL PERFORMANCE OF THE UNIT:

Topic Homework marks Grade Boundaries

A* = 90% +

A = 80% - 89%

B = 70% - 79%

C = 60% - 69%

Chapter 13 Chapter 14Chapter 15Chapter 16Chapter 17Chapter 18Average Performance (%)

Assessment Marks:Grade:

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