b

Question 1

importance of cash

Answer 1

without it business can become insolvent
they cant pay for
wages
raw materials
paying its suppliers

Question 2

what impacts cash flow

Answer 2

change in cost
change in stock levels

Question 3

what is a short term sources of finance

Answer 3

re-paid quickly
used for costs e.g buying stock and utility bills

Question 4

long term source of finace

Answer 4

reapid over long period of time
used to finacea business

Question 5

example of short term source of finance

Answer 5

bank draft
trade credit (paying for stock later)

Question 6

examples of long term source of finance

Answer 6

loan
crowdfunding (raising money for large number people for rewards e.g products ownership)

retained profit ( reinvesting in business for it to keep growing )

Question 7

limited liability

Answer 7

sole trader
legally responsible for debts
losing their personal belongings

risk for the owner
control - depends on if business sold shares to stakeholders

profit- stakeholder,owner

privacy - can be viewed by anyone

Question 8

limited liability

Answer 8

business separate from owner
private limited company
no risk
100% control
100% profits to owner
has privacy from public