Business 0450 · IGCSE · Cash-flow forecasting and working capital

Cash-flow forecasting and working capital — practice question

(a)[8]

Explain two reasons why BB could experience cash-flow problems.

(b)[12]

Consider how these two changes could affect BB’s marketing. Which change is likely to have the greater effect on BB’s marketing? Justify your answer. • Customers are becoming more health conscious. • More people are working from home rather than in offices.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Large credit sales causing cash to arrive later

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