O-LevelCommerceFinanceOct/Nov 2011Paper 1 Q401 Mark
A retailer buys new goods for resale and pays for them using an overdraft. What effect will this have on the retailer's working capital?
AThe working capital will be the same as before.
BThe working capital will be unknown until the goods are sold.
CThe working capital will decrease.
DThe working capital will increase.
✓ Correct Answer
The correct answer is A. 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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