Paper 2

Question 1

What are things that cause cash flow problems? [3]

Answer 1

-Overborrowing
-Seasonal Factors
-Unforeseen Spending

Question 2

What are ways to improve liquidity? [3]

Answer 2

-Reduce Stock
-Reduce credit offered to customers
-Increase long term borrowing and clear short term debts

Question 3

What is cell production?

Answer 3

Breaking down the production process into teams of people, who work on different parts

Question 4

What are ways to improve productivity? [3]

Answer 4

-Motivating employees
-Automation
-Training

Question 5

What is efficiency?

Answer 5

Producing products at the lowest average cost

Question 6

What are ways to improve efficiency? [2]

Answer 6

-Outsouring
-Lean Production

Question 7

What does the SPICED acronym mean?

Answer 7

S- Stronger
P- Pound
I- Imports
C- Cheaper
E- Exports
D- Dearer

Question 8

What does the business cycle show?

Answer 8

Peaks and troughs in the economy as it goes through recession and recovery