Outline TWO differences between the income statement of a non-profit entity vs. a for-profit entity.
No dividends + surplus instead of profit
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15
Identify FOUR external sources of finance
Crowdfunding, business angels, share capital, bank loan, trade credit etc.
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15
A firm takes out a bank loan. Explain whether this is a cash inflow or outflow.
Initially inflow, before interest payments (outflow) and principal paid back (outflow)
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20
Explain TWO disadvantages of using ARR as an investment appraisal method.
Ignores timing of cash flows, forecast figures may not be accurate
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seesaw
Swap points!
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fairy
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fairy
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thief
Give points!
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20
Identify THREE revenue streams that MrBeast (the Youtuber) has.
YouTube itself, sponsorships with companies, MrBeast products
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20
Gardenersâ Pots has total costs of $2,000 and fixed costs of $1,100 for an output level of 600 units. Calculate the variable cost per unit for the firm. [2 marks]
