AQA AS Applied Business Unit 3 - Surf Rider - Possible Exam Questions

Our revision toolkit for AQA AS Applied Business Unit 3 is available from today. The case study on Surf Rider throws up a range of possible exam questions and data-response exercises that students should now be preparing for…

Here is a list of some exam-style questions that illustrate the kind of questions that students might need to answer on the Surf Rider case. This list is not meant to be predictive of the actual exam questions, but we hope it might help guide students and enable them to focus their revision in the coming weeks: Our AQA AS Applied Unit 3 Revision Toolkit contains outline answers to these exam-style questions and also provides guidance on the pre-examination research tasks.

Ginny has decided that the business will operate as a private limited company as this “offers a number of benefits”.

Explain a benefit that shareholders will obtain from the business being a private company.

Explain two benefits that Ginny’s preparation of a business plan will bring as she attempts to raise finance for Surf Rider

Explain how each of the two sources of market research listed below might help Ginny decide whether to go ahead with launching Surf Rider:
(1) Secondary sources of information (e.g. British Surfing Association
(2) Informal market research from discussions with contacts in the surfing fraternity

Ginny’s business plan describes the market research that she has carried out to assess the viability of the business idea. Explain one reason why this might be important to:
(a) A bank manager who is considering making a loan to Surf Rider Ltd
(b) A potential investor in the shares of the company

Analyse the benefits that Ginny might receive from preparing a cash flow forecast for the new business

Using all the data available to you, decide whether or not Ginny should go ahead with Surf Rider Ltd

Explain two reasons why Surf Rider may experience cash flow problems in the first year of trading

Explain one possible reason why Ginny’s cash flow forecast might prove to be inaccurate

Ginny is concerned that business’s forecast cash flow position is weak for the first six months of trading and is considering what actions he might take. Explain two actions that Ginny might take to improve the forecast cash flow position. Select the best option and justify your choice.

As a trained accountant, Ginny is convinced that a cash flow forecast will be an essential part of managing her business. Discuss whether or not Ginny is right. Justify your answer.

Analyse the case for and against Surf Rider raising capital by selling shares to other people

Explain one advantage and one disadvantage for Surf Rider as a consequence of choosing to operate as a private limited company

Ginny has to decide whether or not to go ahead with the business plan for Surf Rider. Use all the information available to you to consider the case for and against starting this business and advise her on whether or not to go ahead. You should justify your decision.

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