Business 0450 · IGCSE · Cash-flow forecasting and working capital
Cash-flow forecasting and working capital — practice question
TJK makes candles. Helping sustainable development matters to TJK. The business carries out batch production in its factory in country X. TJK’s products are aimed at females aged between 20 and 50 years. The Managing Director is examining TJK’s financial figures. An extract appears in Table 3.1. He is also weighing up the advantages to a business of turning into a multinational company.
(a)[2]
Define the term ‘working capital’.
(b)[2]
Calculate TJK’s profit margin. Show the steps in your working.
(c)[4]
Identify four advantages for a business of becoming a multinational company.
(d)[6]
Explain two ways TJK could help sustainable development.
(e)[6]
Do you think batch production is the most suitable method of production for a business? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Cash available for everyday expenses/short-term debts” …