Question detail
SwiftServe serves business clients while changing promotion; the case evidence includes supplier lead time of ?1,813, sales of 373 units, and a 26% change in costs or demand. Justify how the business should respond to Explain internal and external sources of finance, including family and friends, retained profit, share issue, loans or mortgages, selling assets, overdrafts, trade credit, hire purchase and government grants.
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At a glance
Question
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exam_style
Style
Topic
Sources of finance
Question
SwiftServe serves business clients while changing promotion; the case evidence includes supplier lead time of ?1,813, sales of 373 units, and a 26% change in costs or demand. Justify how the business should respond to Explain internal and external sources of finance, including family and friends, retained profit, share issue, loans or mortgages, selling assets, overdrafts, trade credit, hire purchase and government grants.
Answer
Anchor the response in evidence. Apply assets, government grant, share issue, trade credit to SwiftServe serves business clients while changing promotion, then explain how the decision changes cash inflow, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for suppliers, uses figures such as ?5,213 or 26%, and reaches a supported judgement based on the business objective.
Explanation
Separate the trade-offs before concluding. This explanation is anchored to Finance sources and suitability and Sources of finance because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates gross and net profit, which helps the final judgement stay precise.
Common mistake
Finance sources and suitability common mistake 1
Giving a vague answer instead of directly addressing: Explain internal and external sources of finance, including family and friends, retained profit, share issue, loans or mortgages, selling assets, overdrafts, trade credit, hire purchase and government grants..
Answer by clearly explaining how to explain internal and external sources of finance, including family and friends, retained profit, share issue, loans or mortgages, selling assets, overdrafts, trade credit, hire purchase and government grants..
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