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Writer's pictureMr Davies

Lesson 1.3.3 Cash Flow

Updated: Jun 12, 2020

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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