A café's annual sales rose from £40,000 to £50,000. What is the percentage increase?

The café's sales rose by 25%. (£50,000 − £40,000) ÷ £40,000 × 100 = 25%.

What is financial data?

Financial data is information about a business's money, such as revenue, costs, profit and cash flow. Financial data comes from sources such as sales records, profit figures and cash flow forecasts.

What is marketing data?

Marketing data is information about how customers respond to a business's products, prices and promotions. Market research results, sales by product and customer feedback are examples.

Edexcel GCSE Business 1BS0

Enterprise and Entrepreneurship

Topic overview The dynamic nature of business Risk and reward The role of business enterprise

Spotting a Business Opportunity

Topic overview Customer needs Purpose and methods of market research Market research data and its reliability Market segmentation The competitive environment

Putting a Business Idea Into Practice

Topic overview Business aims and objectives Business revenues, costs and profits Cash and cash flow Sources of business finance

Making the Business Effective

Topic overview Business ownership and limited liability Franchising as a start-up option Business location The marketing mix Business plans

Understanding External Influences on Business

Topic overview Business stakeholders Technology and business Legislation and business The economy and business Responding to external influences

Growing the Business

Topic overview Organic and inorganic business growth Public limited companies and finance for growth Changes in business aims and objectives Business and globalisation Ethics, the environment and business

Making Marketing Decisions

Topic overview Product design, life cycle and differentiation Price and pricing strategies Promotion strategies and technology Place and methods of distribution Using the marketing mix to make business decisions

Making Operational Decisions

Topic overview Business operations and production processes Working with suppliers Managing quality The sales process

Making Financial Decisions

Topic overview Profit, profit margins and ARR Understanding business performance

Making Human Resource Decisions

Topic overview Organisational structures and communication Different ways of working Effective recruitment Effective training and development Motivation in the workplace

Making Financial Decisions

Understanding business performance

3 things to know
Paper 2

Overview

Using graphs and quantitative data, financial, marketing and market data, worked percentage changes and averages, and the limitations of financial information for decisions.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

Why do businesses use quantitative data when making decisions?

Key term

Why are graphs and charts useful to a business?

Key term

What should a manager check before drawing conclusions from a graph?

Questions from this subtopic

Each one with the model answer underneath.

1
Why do businesses use quantitative data when making decisions?
Model answer
Numerical data provides evidence on which to base a decision and defend it. A decision backed by evidence is less risky than one based on guesswork.
2
Why are graphs and charts useful to a business?
Model answer
Graphs and charts show trends and comparisons more clearly than tables of numbers. A line graph of monthly sales quickly reveals seasonal peaks.
3
What should a manager check before drawing conclusions from a graph?
Model answer
A manager should check the scale, the units and the time period shown. A graph whose axis does not start at zero can exaggerate small changes.
4
A café's annual sales rose from £40,000 to £50,000. What is the percentage increase?
Model answer
The café's sales rose by 25%. (£50,000 − £40,000) ÷ £40,000 × 100 = 25%.
5
What is financial data?
Model answer
Financial data is information about a business's money, such as revenue, costs, profit and cash flow. Financial data comes from sources such as sales records, profit figures and cash flow forecasts.
6
What is marketing data?
Model answer
Marketing data is information about how customers respond to a business's products, prices and promotions. Market research results, sales by product and customer feedback are examples.

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Enterprise and Entrepreneurship

Spotting a Business Opportunity

Putting a Business Idea Into Practice

Making the Business Effective

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Revenue = price × .

quantitycostprofit

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Cash inflows means money coming into a business.

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