← Business Studies syllabus

SingaporeBusiness Studies

Financial Information and Decisions

5 dot points across 5 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

Why can a profitable business still run out of money, and how does a cash-flow forecast help a firm survive?

Explain cash flow and the difference between cash and profit, construct and interpret a cash-flow forecast, and identify ways to improve cash flow
A focused answer to the O-Level Business Studies outcome on cash flow. The difference between cash and profit, how to build and read a cash-flow forecast, causes of cash-flow problems, and ways to improve cash flow.
9 min answer →

How many units must a business sell before it stops making a loss, and how does break-even analysis guide decisions?

Explain revenue, costs and contribution, calculate the break-even point and margin of safety, and use break-even analysis to support business decisions
A focused answer to the O-Level Business Studies outcome on break-even. Revenue, fixed and variable costs, contribution, the break-even formula, margin of safety, and the uses and limits of break-even analysis.
9 min answer →

How does a business work out whether it made money over the year, and what is the difference between gross profit and the profit it keeps?

Explain the purpose and main parts of an income statement, calculate gross profit and profit for the year, and explain how profit can be used or improved
A focused answer to the O-Level Business Studies outcome on income statements. The purpose and structure of the income statement, calculating gross and net profit, the difference between them, and how profit is used.
8 min answer →

Where can a business get the money it needs, and how does it choose between borrowing, owners' funds and money from operations?

Explain the main internal and external sources of finance, the difference between short-term and long-term finance, and the factors that influence the choice
A focused answer to the O-Level Business Studies outcome on finance sources. Internal and external sources, short-term versus long-term finance, and the factors that decide which source a business should use.
9 min answer →

What does a business own and owe, and how do simple ratios reveal whether it is profitable and able to pay its debts?

Explain the purpose and main elements of a statement of financial position and calculate and interpret simple profitability and liquidity ratios
A focused answer to the O-Level Business Studies outcome on the statement of financial position and ratios. Assets, liabilities and equity, and how to calculate and interpret profitability and liquidity ratios.
9 min answer →