Topic 1.3

Question 1

Business failure

Answer 1

The collapse of a business, probably leading to its closure.

Question 2

Business growth

Answer 2

Factors allowing a company to expand through higher sales and (usually) higher staff levels.

Question 3

Cash flow forecast

Answer 3

Estimating the likely flows of cash over the coming months – and therefore the overall state of one’s bank balance.

Question 4

Entrepreneurs

Answer 4

Businesspeople who see opportunities and are willing to take risks in making them happen.

Question 5

Extension strategy

Answer 5

An attempt to prolong sales of a product for the medium-long term and prevent it from entering its decline stage.

Question 6

External influences

Answer 6

Factors and changes from outside that might prevent a business from achieving its objectives, for example, sales being hit by a sudden recession.

Question 7

Revenue

Answer 7

The total value of sales made within a period of time, such as a month.

Question 8

Survival

Answer 8

Keeping the business going – which ultimately depends on grit plus cash.