Business 7115 · O Level · Cash-flow forecasting and working capital
Cash-flow forecasting and working capital — practice question
Ayesha is planning to launch a business. After completing secondary market research, she has chosen to open a jewellery shop that sells watches and rings. Ayesha intends to use crowd-funding as her source of finance. She has drawn up a cash-flow forecast. An extract is shown in Table 2.1. Ayesha must decide whether buying a franchise is the best way to begin a business.
(a)[2]
Identify two reasons a business may require finance.
(b)[2]
Calculate the values of $X$ and $Y$.
(c)[4]
Outline one benefit and one drawback for Ayesha of using crowd-funding as a source of finance.
(d)[6]
Explain two secondary market research methods Ayesha could have used.
(e)[6]
Do you think buying a franchise is the best way to launch a business? 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: “Launching a business / beginning a business” …