(a)[8]
Identify and explain one opportunity and one threat facing RR if a multinational company opens a restaurant close by.
(b)[12]
Appendix 3 sets out the cash-flow forecast for RR’s business before the choice of site for the new restaurant is made. Assume Richard selects location 1. Consider how selecting location 1 might change RR’s cash-flow forecast. Recommend to Richard how he could try to ensure that RR avoids a cash-flow problem. Justify your answer. Recommendation: