Business 0.0 / 5 ? Business StudiesA2/A-levelAQA Created by: SBDLCreated on: 27-12-12 15:21 Why make profits? EXPAND; re-invest = double capacity. SUPPLEMENT pension. PAY investors a sufficient return 1 of 10 2 ways a business software help Wade manage? STORE records (suppliers,staff) = tailored deals & difficulties - CALCULATE costs via formula 2 of 10 Benefits of a business software to Wade? REFER to records - base decisions overall - REDUCE working hours formula 3 of 10 Benefit of Own Savings? REDUCE loan needed = REDUCE interest, ideal as he wants to re-invest profits not pay off loans 4 of 10 Should Wade seek a Venture Capitalist? YES - more experience brought and no interest to pay. NO - loose control - specific direction (en-suite) 5 of 10 Should Wade seek a loan? YES - control and specific ideas, interest rates are low. NO - no experience 6 of 10 Cash Flow Inaccuracy? LACKS experience - fail to take into account seasonal nature. EXTERNALITIES - e.g exchange rate 7 of 10 Improve cash flow? CUT COSTS - cheaper insurance - quality? - OVERDRAFT shortfalls 'winter period - TRADE CREDIT - stagger payments (sales in summer) 8 of 10 Benefit of Variance Analysis ACCURATE sales - IDENTIFY unexpected costs eg tax and take CORRECTIVE ACTION 9 of 10 Value of a Cash Flow Forecast? LOAN - bank assess projected costs - IDENTIFY strengths ' corrective action' 10 of 10
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