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Answer ALL questions Leave
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1. (a) WebDesPix was started with £8000 capital

(i) Describe one likely source of this capital?

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(2)

(ii) Describe what is meant by the term bank overdraft

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(2)

(b) (i) The bookkeeper is responsible for producing the accounts for WebDesPix Ltd.…

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Tax @ 25%


Profit after Tax






Complete the Profit and Loss Account. (5)

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(ii) WebDesPix Ltd have never used a bank loan and it is company policy to reinvest profit.

Analyse the benefits to WebDesPix Ltd of taking this approach to expanding their business


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(c) It is important for the bookkeeper to pay careful attention the balance sheet of
WebDesPix to identify any problems that may arise.

This month she calculated the acid test ratio to be 0.8:1. Using this ratio describe the liquidity
position of WebDesPix Ltd.

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2. WebDesPix Ltd. has a vacancy for a web designer

(a) List four methods of external recruitment


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(b) Explain one advantage of WebDesPix Ltd. using a three month probationary period for
new staff

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WebDesPix Ltd. staff…

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Areas where the government offers protection to employees are
protection against unfair discrimination either in pay or with regard to disability
health and safety at work.

(d) Consider whether it might be expensive for WebDesPix Ltd., as a small business, to
apply…

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