Cash-Flow and Profitability (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is factoring as a cash-flow improvement method?
What is factoring as a cash-flow improvement method?
Selling unpaid invoices for immediate cash
How does factoring affect a business's profitability?
How does factoring affect a business's profitability?
Reduces profit margins due to fees charged
What is a key difficulty of sale and lease back?
What is a key difficulty of sale and lease back?
Permanent loss of the asset
What risk does reducing credit periods pose?
What risk does reducing credit periods pose?
Customers may switch to competitors
What happens when prices increase if demand is elastic?
What happens when prices increase if demand is elastic?
Sales volume typically falls
How can cost cutting harm a business?
How can cost cutting harm a business?
Product quality may deteriorate
What problem arises from using capacity fully?
What problem arises from using capacity fully?
Supply and demand may mismatch
What negative effect does increasing efficiency often cause?
What negative effect does increasing efficiency often cause?
Redundancies and job losses
Why is improving cash flow and profitability difficult in practice?
Why is improving cash flow and profitability difficult in practice?
Each method has difficulties and drawbacks
Why do most profitability improvements create problems?
Why do most profitability improvements create problems?
They affect stakeholders negatively