Business 0450 · IGCSE · Cash-flow forecasting and working capital
Cash-flow forecasting and working capital — practice question
TJM is a private limited company. It operates as a food retailer and owns 450 shops. During 2021, TJM’s revenue rose by $500 million. The Finance Director is examining TJM’s financial statements. An extract appears in Table 2.1. The directors intend to expand TJM by launching 20 new shops. TJM will need to complete a recruitment and selection process for 400 new employees.
(a)[2]
Define the term ‘revenue’.
(b)[2]
Calculate working capital. Include your working.
(c)[4]
Outline two advantages of TJM operating as a private limited company.
(d)[6]
Explain two reasons why profit could be important to TJM.
(e)[6]
Do you think an interview is the best method for a large business to choose new employees? 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: “The money received from selling a product over a given period of time” …