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WalesBusinessQuick questions
Business Functions (AS Unit 2)
Quick questions on Finance and financial planning - WJEC A-Level Business
4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is cash-flow forecasting?Show answer
The forecast lets a firm see in advance when cash will be tight and act early - arranging an overdraft, delaying a payment or chasing customers. Because a profitable business can still fail if it runs out of cash to pay wages or suppliers, managing cash flow is vital, especially for new and growing firms.
What are profitability ratios?Show answer
Two ratios from the income statement measure profitability:
What is q1?Show answer
Define the term cash-flow forecast. [2 marks]
What is q2?Show answer
A firm has revenue of £300,000 and net profit of £45,000. Calculate its net profit margin. [2 marks]
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