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O-LevelCommerceFinanceOct/Nov 2024Paper 1 Q361 Mark

What is an advantage to a business of using retained profits to purchase a new factory?

Afixed assets increase in value
Bthere are increased dividends for shareholders
Cthere are low interest charges
Dthere is less impact on working capital

✓ Correct Answer

The correct answer is D. This question tests the candidate's understanding of finance within the Commercesyllabus. The examiner's mark scheme requires...

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

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About This O-Level Commerce Question

This multiple-choice question appeared in the Cambridge O-Level Commerce (7100) Oct/Nov 2024 examination, Paper 1 Variant 1. It tests the topic of Finance and is worth 1 mark.

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