Category: Business Studies

These are the monthly cash flow figures for a business.

– Opening balance £10 000 Cash inflow £14 000 Cash outflow £28 000

What is the closing balance for the business at the end of the month?

Select ONE answer:

1. -£14,000
2. -£4,000
3. £24,000
4. £38,000

Show the workings to arrive at your answer, and explain and justify your reasons:

Identify ONE method a company could use to immediately improve cash-flow.

Select ONE answer:

1. Allow customers to pay later
2. Launch an expensive advertising campaign
3. Increase stocks of raw materials
4. Pay suppliers later

Show the workings to arrive at your answer, and explain and justify your reasons:

A slogan is MOST likely to be associated with which of the following?

Select ONE answer:

1. Pricing strategy
2. Quality assurance
3. Strong branding
4. Stock control

Show the workings to arrive at your answer, and explain and justify your reasons:

Which ONE of the following is the MOST likely advantage to a business from improved customer loyalty?

Select ONE answer:

1. Lower margin of safety
2. Higher revenue
3. Lower productivity
4. Higher break-even point

Show the workings to arrive at your answer, and explain and justify your reasons:

What is a calculated risk?

Select ONE answer:

1. Weighing up the probability of profit or loss.
2. The total revenue received from sales over a period of time.
3. Involves taking risks, showing initiative and a willingness to undertake new ventures.
4. A document outlining the responsibilities and duties expected to be carried out by someone.

Show the workings to arrive at your answer, and explain and justify your reasons: