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Which of the following is a possible drawback of ethical behaviour for a business? A Higher cost of supplies B Higher sales revenue C Low employee motivation D Unlimited liability The net profit margin for 2020 was 20% - AQA - GCSE Business - Question 2 - 2022 - Paper 1
Question 2
Which of the following is a possible drawback of ethical behaviour for a business? A Higher cost of supplies B Higher sales revenue C Low employee motivation D ... show full transcript
Worked Solution & Example Answer:Which of the following is a possible drawback of ethical behaviour for a business? A Higher cost of supplies B Higher sales revenue C Low employee motivation D Unlimited liability The net profit margin for 2020 was 20% - AQA - GCSE Business - Question 2 - 2022 - Paper 1
Step 1
Which of the following is a possible drawback of ethical behaviour for a business?
Answer
The correct answer is A: Higher cost of supplies. Ethical behaviour can lead to increased expenses, such as sourcing sustainable materials or ensuring fair wages, which might elevate the overall cost of supplies.
Step 2
State the formula for net profit margin and show your workings.
Answer
The formula for net profit margin is:
ext{Net Profit Margin} = rac{ ext{Net Profit}}{ ext{Revenue}} imes 100To calculate the change in net profit margin:
- Net Profit Margin for 2019: Let's assume from Table 2 that the net profit margin was 15%.
- Net Profit Margin for 2020: Given as 20%.
- Change in net profit margin:
Thus, the change in the net profit margin for Skate4U Ltd from 2019 to 2020 is 5%.