Business 7115 · O Level · Cash-flow forecasting and working capital
Cash-flow forecasting and working capital — practice question
LFK runs a coal-mining business. It employs 135 workers, and all of them receive training. After one of LFK’s employees has been dismissed, there is a vacancy for a new supervisor. External recruitment will be used. The Managing Director is drawing up a cash flow forecast for LFK. An extract is shown in Table 3.1.
(a)[2]
Define what is meant by ‘dismissal’.
(b)[2]
Calculate the values for $X$ and $Y$.
(c)[4]
Identify four reasons why a cash flow forecast could be useful to a business.
(d)[6]
Explain two advantages that LFK gains from training its employees.
(e)[6]
Do you think the advantages of external recruitment for a business outweigh the disadvantages? Justify your response.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Employment has been ended against the employee’s wishes because of poor performance or a contract breach” …