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Business Studies IGCSEPDF 167
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PDF 167
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(b) Identify two advantages to a business of using external sources of finance.
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Question Answer Marks Guidance
3(b) Calculate the value of X and Y. 2 | Y must be shown as a negative number. This could be using
brackets/minus sign.
Award 1 mark for each correct calculation.
X: 500000 or (500000) or 500 [1]
Y: (40000) or (40) or — 40 [1]
3(c) Identify four reasons why a cash flow forecast might be 4 | Only award the first four responses given.
useful to a business.
Award 1 mark for each relevant reason (max 4).
Points might include:
e Help support a loan application / attract investors
e Can identify (possible causes of) cash flow problems
¢ Help (financial) planning / budgeting / manage cash flow
better / help avoid cash flow problems or insolvency
e — Identify how much a business might need to borrow/size
of overdraft
e Identify whether the business will be holding too much
cash that could be put to better use
¢ Helps with decision making / decide if expansion is
possible
Other appropriate responses should be credited.