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Cambridge IGCSE Business Studies practice

Paper 1 structured question: Cash-flow forecasting and working capital

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Attempt questionCash-flow forecasting and working capital revisionRevise the key idea

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Cash-flow forecasting and working capital

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Paper 1Short Answer and Data Response2 marks

A company is considering strategies to improve its cash flow.

Description

Improving Cash Flow

The company is looking at options such as using an overdraft, delaying supplier payments, and encouraging quicker customer payments.

  1. a

    Explain two strategies the company could use to improve cash flow.

    Aim for approximately 2 distinct marking points.

    [2]

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Paper 1 structured question: Cash-flow forecasting and working capital

Paper 1Short Answer and Data Response1 marks

Description

Cash Flow Challenges

The business has a cash flow forecast showing a negative balance next month due to slow customer payments.

  1. a

    State one reason why cash flow forecasting is important for this business.

    Aim for approximately 1 distinct marking point.

    [1]