Business 9609 · AS & A Level · Forecasting and managing cash flows

Forecasting and managing cash flows — practice question

Part 1[3]

Explain one method Rehana could adopt to improve liquidity.

Worked solution & mark scheme

This 3-mark question has a full step-by-step worked solution and mark scheme. One marking point: Identify a method that can raise liquidity (e.g. dispose of fixed assets, sell inventory, encourage prompt settlement of receivables, take out a long-term loan to repay short-term borrowing, retain profits).

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