Other stuff

Question 1

Three cash control mechanisms

Answer 1

1. Takings should be banked at least daily, but not at the same time every day.
2. Cash should not be kept on the premises or overnight, as this not only increases the likelihood of theft, but also the potential loss if theft occurs.
3. All payments should be made with cheque because they are more secure.

Question 2

Purpose of bank reconciliation process

Answer 2

The process of verifying the entries in the firms cash journals by comparing them against the transactions recorded on the bank statement.

Question 3

Features of a business plan

Answer 3

Business plan should include:

• A description of the business and the most appropriate structure.
• A description of the product or service.
• A market analysis that would include marketing strategies.

Question 4

Professional assistance for a business owner

Answer 4

Professionals who can assist business owners include:

-Bank managers:
Can provide specific advice regarding business finance and suggest alternatives in terms of financing options.

-Lawyers:
Can assist business owners in any form of legal matter. Such as establishment of an ownership structure.