Business Studies - Case Study - Section 5/ Cash flow forecast

Question	Answer
What is a cash flow forecast	A projection of cash flow for the near future based on previous expenditure.
What are the advantages of Cash flow forecasts?	We can predict the future expenditure of a business. Easy to see options Removes the jeopardy. Can highlight potential problems. Builds Investor condifence.
What are the disadvantages of Cash flow forecasts?	Doesn't account for potential, unexspected losses. Only a rough estimate Only accounts for a small portion of the year. May not take into account payments that will affect business in the future.
How might selling through a website maximise efficiency and minimise costs?	Stock is displayed virtually. Transactions are automated. Invoices and receipts are sent via email. interactive areas for customer feedback can also be included on a website
What are the additional costs through a website.	Cost of designing, maintaining and updating an online site. additional packaging, transportation / delivery costs sold over the Internet.

Resource summary

	Created by Humza Butt about 7 years ago