Business 0450 · IGCSE · Cash-flow forecasting and working capital
Cash-flow forecasting and working capital — practice question
Bakin Group (BG) is a limited company. It runs 3 holiday parks that provide families with holiday accommodation and activities. BG wants to meet customers’ needs 24 hours a day. Customers pay for their holidays when they arrive at the park. Each park employs 3 managers and 40 part-time employees. BG advertises through a broad mix of social media networks. The Finance Director is worried about BG’s cash flow position. He is unsure whether an overdraft is the best way for BG to deal with its cash flow problem.
(a)[2]
What does the term ‘limited company’ mean?
(b)[2]
Calculate X and Y.
(c)[4]
Identify and explain two advantages to BG of employing part-time employees.
(d)[6]
Identify and explain one advantage and one disadvantage to BG of promoting through social media networks.
(e)[6]
Do you think an overdraft is the most suitable way for BG to solve its cash flow problem? 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: “A business with a separate legal identity from its owners” …