Business Studies · May / June 2016 · Paper 12 · Question 3

Alex and Raul are business partners. They started a bicycle repair business with their own savings as the bank would not give them a loan. Raul does most of the repair work, while Alex manages the accounts. Alex is surprised that the business has made a small profit in the first year. ‘We can use this profit to expand. I don’t know why people think we would benefit from having a business plan. Much of the demand for our repair business comes from our friends who own bicycles.’ Table 2: Extract from balance sheet as at 31 March 2016 ($) Non-current assets 3000 Current assets 2500 Current liabilities 2000 Non-current liabilities 1500

Read automatically from the paper; the printed page above is exact.