Planning a business and raising finance

Worked examples (6)

• 1Identify the business-plan section
• 2Match the purpose of planning
• 3Explain a benefit of planning
• 4Why might the plan be unreliable?
• 5Analyse two benefits of planning
• 6Discuss whether a detailed plan is worth it

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Explain (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section A style — Analyse two (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Identify the internal source
• 2Can a start-up use retained profit?
• 3Explain preferring retained profit over a loan
• 4Judge a sale of assets
• 5Analyse two limits of internal finance
• 6Discuss funding growth internally

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Explain (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section A style — Analyse two (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Limited or unlimited liability?
• 2Whose assets are at risk?
• 3Explain limited liability for a shareholder
• 4Why does limited liability help raise finance?
• 5Analyse two effects of unlimited liability
• 6Discuss whether unlimited liability is a serious problem

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Explain (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section A style — Analyse two (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Source or method?
• 2Match the source to the firm
• 3Short-term or long-term method?
• 4Can this firm sell shares?
• 5Analyse two drawbacks of a bank loan
• 6Discuss debt vs equity finance

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Explain (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section A style — Analyse two (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Identify the form of business
• 2Form or source of finance?
• 3Explain an advantage of incorporating
• 4Judge a franchise
• 5Analyse two drawbacks of becoming a plc
• 6Discuss whether to incorporate

Model answers (6)

• ✓Model answer — WBS12 Section A style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS12 Section A style — Explain (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS12 Section A style — Analyse two (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS12 Section B style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS12 Section A/B style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS12 Section C style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)