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What is the most likely outcome for Brownlow based on the above information? Select one answer: ☐ A Growth ☐ B Insolvency ☐ C Franchise ☐ D Expansion - Edexcel - GCSE Business - Question 13 - 2015 - Paper 1
Question 13
What is the most likely outcome for Brownlow based on the above information? Select one answer: ☐ A Growth ☐ B Insolvency ☐ C Franchise ☐ D Expansion
Worked Solution & Example Answer:What is the most likely outcome for Brownlow based on the above information? Select one answer: ☐ A Growth ☐ B Insolvency ☐ C Franchise ☐ D Expansion - Edexcel - GCSE Business - Question 13 - 2015 - Paper 1
Step 1
B Insolvency
Answer
Based on the provided cash flow information, where the cash outflow is significantly more than the cash inflow (with cash outflow recorded at £70,000), the most likely outcome for Brownlow is insolvency. This indicates that the business does not have sufficient funds to cover its liabilities, leading to the inability to meet its financial obligations.