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Finance - Deep Dive 8 - Exam Question Deep Dive: Retained Profit vs Overdraft
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Welcome to Episode 8 of our Finance Series, where we take a deep dive into a 9-mark exam question from a GCSE Business Studies paper. In this episode, we explore a scenario involving Skate4U Ltd and their decision on how to fund a £50,000 sponsorship—should they use retained profit or rely on their overdraft?
Using the PEELC framework, we analyse both options in detail, breaking down the financial implications, risks, and strategic benefits. This episode offers clear guidance on crafting top-tier answers for high-mark exam questions, with a focus on application, analysis, and evaluation.
Whether you're preparing for exams, teaching Business Studies, or interested in real-world finance strategies, this episode is packed with insights to help you succeed. Don’t miss this comprehensive discussion on balancing risk and reward in business finance!
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