4.4a The Reef

Question 1

Marketing mix

Answer 1

a combination of factors that can be controlled by a company to influence consumers to purchase its products.

Question 2

Why is cash flow forecast important?

Answer 2

Cash flow forecasting is important because if a business runs out of cash and is not able to obtain new finance, it will become insolvent

Question 3

Target market

Answer 3

a particular group of consumers at which a product or service is aimed

Question 4

Market mix

Answer 4

The marketing mix is a foundation model in marketing. The marketing mix has been defined as the “set of marketing tools that the firm uses to pursue its marketing objectives in the target”

Question 5

Total cost

Answer 5

Variable cost + fixed cost

Question 6

Revenue =

Answer 6

Price x quantity

Question 7

Break even in units

Answer 7

Fixed cost / sale prices - variable cost

Question 8

Break even cost/ revenue =

Answer 8

Break even in units x sale prices

Question 9

Margin safety

Answer 9

Actual or budgeted sales - break even sales

Question 10

Interest in %

Answer 10

Total repayment -borrowed amount / borrowed amount x 100

Question 11

Net cash flow

Answer 11

Cash flow - cash flow in given period of time