Difficulties of Improving Cash-Flow and Profitability (AQA A-Level Business): Flashcards
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Practise the cards
10 cards from this deck
Factoring (cash flow method)
Factoring (cash flow method)
Selling unpaid invoices to third party for immediate cash
Difficulty of factoring: profit impact
Difficulty of factoring: profit impact
Factoring company charges fees, reducing profit margins
Sale and lease back definition
Sale and lease back definition
Selling asset then leasing it back for ongoing use
Difficulty of sale and lease back: asset
Difficulty of sale and lease back: asset
Permanent loss of asset ownership and future capital gains
Working capital control meaning
Working capital control meaning
Tightening credit terms with customers or suppliers
Difficulty of price increases
Difficulty of price increases
Reduced sales volume, especially if demand is price elastic
Difficulty of cost cutting: quality
Difficulty of cost cutting: quality
Using cheaper materials can damage product quality
Difficulty of cost cutting: employees
Difficulty of cost cutting: employees
Job losses/redundancies upset labour relations and morale
Productive capacity definition
Productive capacity definition
Maximum output a business can produce
Difficulty of using capacity fully
Difficulty of using capacity fully
Demand may not match increased supply, unsold output