Business 0450 · IGCSE · Cash-flow forecasting and working capital
Cash-flow forecasting and working capital — practice question
SMR makes snack food by batch production. The snacks are marketed to people attending sporting events in city Y. To motivate its 3 part-time employees, SMR pays bonuses. The business has had customer complaints about the quality of the snacks. It predicts cash-flow difficulties in the next few months. Table 3.1 contains an extract from this cash-flow forecast.
(a)[2]
Calculate the values of X and Y?
(b)[2]
Define ‘batch production’?
(c)[4]
Identify four methods a business could use to ensure the quality of its products?
(d)[6]
Explain two ways SMR could deal with its cash-flow problems?
(e)[6]
In a small business, do you think paying bonuses is the best way to motivate employees? Support your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “X = (300) is the required value.” …