Question 5

Content
2 marks – identifies at least two factors that point to the business being a success or a failure, identifies one factor and defines the term profit
1 mark – defines the term profit or identifies one factor

Application
2 marks – Good application to the case
1 mark – Limited application to the case

Analysis
3 marks – Good analysis of the factors
1-2 – Limited analysis of the factors

Evaluation
2 marks – Good evaluation of the situation
1 mark – Limited evaluation of the situation

Points include
In the first year the profit was relatively low - £24,000 considering that Susan and her husband where both running the business
Revenues and profits increase in the 2nd year of operation which shows that the business is growing
Susan struggles with her cash flow when her business starts up, problems with cash flow can lead to companies liquidating