BTEC UNIT 2: FINANCE FOR BUSINESS - LA B D2

What tool helps businesses plan for success?

• Marketing

• Budgeting

• Hiring

• Networking

Which of the following is NOT a use of budgeting in business?

• Forecasting sales revenue

• Introducing a new product

• Planning employee vacations

• Building an extension of a factory

What should be the basis for setting a budget?

• Random estimates

• Financial information from the previous year

• Competitor analysis

• Employee suggestions

What is a common solution for individuals who suddenly need money for a critical purchase?

• Sell assets

• Borrow money from a relative

• Invest in stocks

• Start a new business

What is the term used for money expected to enter a business’s bank account?

• Cash outflow

• Cash inflow

• Net profit

• Gross income

What is the result if a business's cash inflow is greater than its cash outflow?

• Negative cash flow

• Positive cash flow

• Bankruptcy

• Loss of assets

What is a potential risk if a business does not manage its cash flow effectively?

• Increased employee satisfaction

• Financial trouble

• Higher market share

• More product innovation

What is a cash flow problem in business terms?

• Excessive profits

• Lack of employee engagement

• Shortage of money to cover expenses

• High customer demand

What can shareholders be asked to buy if extra capital is needed?

• More shares

• More property

• More equipment

• More utilities

What do materials for manufacturing depend on?

• The size of the business

• The nature of the business

• The location of the business

• The age of the business