A LEVEL EDEXCEL BUSINESS PAPER 2 EXAM
2024/2025 | ACCURATE AND VERIFIED EXAM
QUESTIONS AND ANSWERS FOR GUARANTEED
PASS | LATEST UPDATE
Capital - ✔✔ANSW✔✔..The money provided by the owners in a business
Capital expenditure - ✔✔ANSW✔✔..Spending on business resources that can be used
repeatedly over a period of time
Current assets - ✔✔ANSW✔✔..Liquid assets ie those assets that will be converted into
cash within one year
Current liabilities - ✔✔ANSW✔✔..Money owed by the business that must be repaid
within one year
Current ratio - ✔✔ANSW✔✔..Assesses whether or not a business has enough
resources to meet any debts that arise in the next 12 months. It is found by dividing
current liabilities into current assets.
Intangible assets - ✔✔ANSW✔✔..Non-physical assets, such as brand names, patents
and customer lists
Inventories - ✔✔ANSW✔✔..Stocks, such as raw materials and finished goods held by a
business
Liabilities - ✔✔ANSW✔✔..Money owed by the business to banks and suppliers, for
example
Liquidity - ✔✔ANSW✔✔..The ease with which assets can be converted into cash
Net assets - ✔✔ANSW✔✔..Total assets - total liabilities
Non-current assets - ✔✔ANSW✔✔..Long-term resources that will be used by the
business repeatedly over a period of time
Non-current liabilities - ✔✔ANSW✔✔..Money owed by the business for more than one
year, sometimes called long-term liabilities
, Shareholders' equity - ✔✔ANSW✔✔..The amount of money owed by the business to
the shareholders
Statement of financial position (balance sheet) - ✔✔ANSW✔✔..A summary at a
particular point in time of the value of a firm's assets, liabilities and capital
Trade and other payables - ✔✔ANSW✔✔..Money owed by the business to suppliers
and utilities, for example. Sometimes called trade creditors
Trade and other receivables - ✔✔ANSW✔✔..Money owed to the business by customers
and any prepayments made by the business
Working capital - ✔✔ANSW✔✔..The funds left over to meet day-to-day expenses after
current debts have been paid. It is calculated by subtracting current liabilities from
current assets
Administration - ✔✔ANSW✔✔..A failing business appoints a specialist to rescue the
business or wind it up
External factors - ✔✔ANSW✔✔..Factors beyond the control of businesses cause it to
collapse
Internal factors - ✔✔ANSW✔✔..Factors that business are able to control cause it to
collapse
Overtrading - ✔✔ANSW✔✔..The situation where a business does not have enough
cash to support its production and sales, usually because it is growing too fast
Batch production - ✔✔ANSW✔✔..A method that involves completing one operation at a
time on all units before performing the next
Capital intensive - ✔✔ANSW✔✔..Production methods that make more use of machinery
relative to labour
Capital productivity - ✔✔ANSW✔✔..The amount of output each unit of capital (one
machine) produces
Cell production - ✔✔ANSW✔✔..Involves producing a family of products in a small self-
contained unit (a cell) within a factory
Division of labour - ✔✔ANSW✔✔..Specialisation in specific tasks or skills by an
individual
2024/2025 | ACCURATE AND VERIFIED EXAM
QUESTIONS AND ANSWERS FOR GUARANTEED
PASS | LATEST UPDATE
Capital - ✔✔ANSW✔✔..The money provided by the owners in a business
Capital expenditure - ✔✔ANSW✔✔..Spending on business resources that can be used
repeatedly over a period of time
Current assets - ✔✔ANSW✔✔..Liquid assets ie those assets that will be converted into
cash within one year
Current liabilities - ✔✔ANSW✔✔..Money owed by the business that must be repaid
within one year
Current ratio - ✔✔ANSW✔✔..Assesses whether or not a business has enough
resources to meet any debts that arise in the next 12 months. It is found by dividing
current liabilities into current assets.
Intangible assets - ✔✔ANSW✔✔..Non-physical assets, such as brand names, patents
and customer lists
Inventories - ✔✔ANSW✔✔..Stocks, such as raw materials and finished goods held by a
business
Liabilities - ✔✔ANSW✔✔..Money owed by the business to banks and suppliers, for
example
Liquidity - ✔✔ANSW✔✔..The ease with which assets can be converted into cash
Net assets - ✔✔ANSW✔✔..Total assets - total liabilities
Non-current assets - ✔✔ANSW✔✔..Long-term resources that will be used by the
business repeatedly over a period of time
Non-current liabilities - ✔✔ANSW✔✔..Money owed by the business for more than one
year, sometimes called long-term liabilities
, Shareholders' equity - ✔✔ANSW✔✔..The amount of money owed by the business to
the shareholders
Statement of financial position (balance sheet) - ✔✔ANSW✔✔..A summary at a
particular point in time of the value of a firm's assets, liabilities and capital
Trade and other payables - ✔✔ANSW✔✔..Money owed by the business to suppliers
and utilities, for example. Sometimes called trade creditors
Trade and other receivables - ✔✔ANSW✔✔..Money owed to the business by customers
and any prepayments made by the business
Working capital - ✔✔ANSW✔✔..The funds left over to meet day-to-day expenses after
current debts have been paid. It is calculated by subtracting current liabilities from
current assets
Administration - ✔✔ANSW✔✔..A failing business appoints a specialist to rescue the
business or wind it up
External factors - ✔✔ANSW✔✔..Factors beyond the control of businesses cause it to
collapse
Internal factors - ✔✔ANSW✔✔..Factors that business are able to control cause it to
collapse
Overtrading - ✔✔ANSW✔✔..The situation where a business does not have enough
cash to support its production and sales, usually because it is growing too fast
Batch production - ✔✔ANSW✔✔..A method that involves completing one operation at a
time on all units before performing the next
Capital intensive - ✔✔ANSW✔✔..Production methods that make more use of machinery
relative to labour
Capital productivity - ✔✔ANSW✔✔..The amount of output each unit of capital (one
machine) produces
Cell production - ✔✔ANSW✔✔..Involves producing a family of products in a small self-
contained unit (a cell) within a factory
Division of labour - ✔✔ANSW✔✔..Specialisation in specific tasks or skills by an
individual
