Page 297 - Cambridge IGCSE Business Studies

23: Analysis of accounts

a What is meant by ‘profi t margin’? [2]
b Identify the two sectors of business activity which
the farming and banking industries belong to. [2]

c Identify and explain one benefi t and one limitation
of fi nancial ratios to shareholders. [4]

d Identify and explain two reasons why the difference
between gross profi t margin and profi t margin is
greater for banking than either of the other
two industries shown. [6]
e Do you think that all clothing manufacturers in Country Y
will have a profi t margin of 7%? Justify your answer. [6]

Total available marks 40

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