What is cash?
It is the most liquid asset, available to spend immediately.
Why is cash important for businesses?
To pay debts, avoid cash problems, and plan finances.
What is a cash flow forecast?
A plan showing expected inflows and outflows of cash.
Give 3 examples of cash inflows.
Cash sales, loans, sale of assets.
Give 3 examples of cash outflows.
Wages, buying materials, loan repayments.
Is profit the same as cash?
No. Cash is available now. Profit may come later.
What happens if a business runs out of cash?
It becomes insolvent (bankrupt).
What is a cash surplus?
When inflows are more than outflows.
What is a cash deficit?
When outflows are more than inflows.
What is the formula for net cash flow?
Cash inflows – Cash outflows.
What is the closing balance?
Net cash flow + Opening balance.
What is the opening balance of a month?
The closing balance of the previous month.
Name 2 ways to improve cash flow quickly.
Ask customers to pay faster, or take a bank loan.
What is working capital?
Money available for day-to-day operations.
Formula for working capital?
Current assets – Current liabilities.
What is a current asset?
Things like cash, inventory, or money owed to you.
What is a current liability?
Debts that must be paid soon (like bills and loans).
What does positive working capital mean?
Assets are more than debts – good for business.
What does negative working capital mean?
Debts are more than assets – bad for business.
Name one reason cash flow management is important.
To pay suppliers and avoid business failure.
What does a positive working capital mean?
Current assets are greater than current liabilities.
What does a negative working capital mean?
Current liabilities are greater than current assets.
Why is positive working capital important?
It helps the business pay day-to-day expenses.
Why is negative working capital bad?
The business may not be able to pay its short-term debts.
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1.1 Business activity29
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1.2 Classification of businesses15
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1.3 Enterprise, business growth and size23
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1.4 Types of business organisation34
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1.5 Business objectives and stakeholder objectives11
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2.1 Motivating employees66
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2.2 Organisation and management34
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2.3 Recruitment, selection and training of employees31
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2.4 Internal and external communication24
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3.1 Marketing, competition and the customer29
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3.2 Market research35
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3.3 Marketing mix39
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3.4 Marketing strategy23
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Chapter 5.239
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Chapter 5.320
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Chapter 5.144
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Chapter 5.423
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Chapter 5.523
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Chapter 6.120
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Chapter 6.221
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Chapter 6.316
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Chapter 4.123
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Chapter 4.2:20
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Chapter 4.312
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Chapter 3.120
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Chapter 3.227
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Chapter 3.337
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Chapter 3.422
