Cash-Flow (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 does cash-flow refer to in a business?
What does cash-flow refer to in a business?
The movement of money in and out
Why can even profitable businesses fail?
Why can even profitable businesses fail?
They run out of cash for immediate bills
What are typical trade credit periods offered to customers?
What are typical trade credit periods offered to customers?
30, 60, or 90 days
How does offering trade credit affect a business?
How does offering trade credit affect a business?
Helps sales but hurts cash-flow short-term
What is overtrading?
What is overtrading?
Expanding too rapidly without proper planning
In factoring, what percentage of debt value does the factor pay immediately?
In factoring, what percentage of debt value does the factor pay immediately?
Approximately 80%
What is the main drawback of factoring for a business?
What is the main drawback of factoring for a business?
Loses roughly 5% of revenue to the factor
What is the main cash-flow benefit of sale and leaseback?
What is the main cash-flow benefit of sale and leaseback?
Provides a short-term cash-flow boost
How can managing debtors improve working capital?
How can managing debtors improve working capital?
Encourage customers to pay invoices on time
How does managing creditors help cash-flow?
How does managing creditors help cash-flow?
Negotiate longer payment terms with suppliers