Finance

Question 1

cash flow forcast

Answer 1

written plan used to predict how much money the business plan will receive and spend in the future

Question 2

dealing with an expected deficit

Answer 2

increase cash receipts
-sell investments
-have a sale
-use better credit control methods
decrease cash payments
-hire purchase/leasing instead of buying
-cutback in expenses
-reduce dividends

Question 3

why prepare a cashflow forcast

Answer 3

advance notice of a deficit/surplus
compare to actual receipts/payments- did it meet a target
to show the bank the finances of a business are properly managed - for a loan

Question 4

household budget

Answer 4

list of the money they expect to make and the money they plan to spend

Question 5

short term sources of finance

Answer 5

household
-bank overdraft
-accrued expenses
-credit card
business
-bank overdraft
-accrued expenses
-trade credit
-factoring

Question 6

medium term sources of finance

Answer 6

household
-hire purchase
-leasing
-personal loan
business
-hire purchase
-leasing
-term loan

Question 7

long term sources of finance

Answer 7

household
-mortgage
-savings
business
-debentures
-retained earnings
-grants
-equity capital

Question 8

factors to consider when choosing

Answer 8

cost
purpose
security
tax
control

Question 9

to qualify for a loan

Answer 9

purpose
ability to pay
security
credit history
business plan

Question 10

household vs business management

Answer 10

similarities
-budgeting
-raising finance
-have control
-communicate
differences
-tax
-size
-mission
-manpower planning