The importance of cash to a business: ● to pay suppliers, overheads and employees ● to prevent business failure (insolvency) ● the difference between cash and profit
Discover
Delve
Shelly's business cash flow
Demonstrate Question
This question is a discuss question. You MUST use the BLT format still however this time you will need two impacts or points with BLT. An example is below for a different discuss question. The structure of your answer should match the example.
Discuss the impact on a business of changes in consumer wants. (6 marks).
One impact is a business will have to carry out more market research
This is because they will need to know what these consumer changes are
This leads to designing products more inline with the consumer needs
Therefore keeping existing and new consumers attracted to the business
Another impact is a business will to adapt existing products
This is because they will be more in line with consumer wants
This leads to higher costs in development of current products
Therefore a reduction in profit for the business
Have a go at your own
Discuss the importance of cash to the survival of a small business. (6 marks)
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Mark Scheme
