Skip to content

Course home

Sign up

2.4 Making financial decisions

EasyMediumHard
123456789101112131415
Question 14

Why should a business avoid choosing an investment using ARR alone?

[1]
A

ARR cannot be calculated as a percentage

B

ARR measures customer satisfaction rather than profit and therefore avoids all calculation

C

Forecast profits may be uncertain and non-financial factors also matter

D

A higher ARR always means the investment costs more

Markscheme

2.4 Making financial decisions Questions

  1. GCSE
  2. /Business
  3. /2.4 Making financial decisions

37 exam-style questions on Edexcel GCSE Business 2.4 Making financial decisions, covering 2.4.1a Gross and net profit, 2.4.1b Margins and average rate of return, 2.4.2a Using quantitative business data, 2.4.2b Financial information: understanding performance, and 2.4.2c Financial information: making business decisions. Each one has a worked solution and a mark scheme showing where the marks go.

Question bank