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C3 Suggesting improvements to cash flow problems GapFill

Target Level
4-5
Running Total
0
0%
Attempt
1 of 3

You must fill all the gaps before clicking ‘Check Answers!’

Too much cash is referred to as a cash  successsurplusoweddebt, while too little cash is a cash  deficitpurchasedetailsstatement. Both need to be managed by the business owner. 

There are options to bring more cash into the business. These include selling off unused  assetsstaffexceptionswages or trying to increase  revenueallowancestaxreceipts through marketing or offers. On the other hand, a business owner may attempt to keep cash in the business for longer, by delaying payments to  banksuppliersstockstaff. At the same time, the owner can chase  interest ratesdebtorsoverdraftdetails to make them pay the business quicker. 

Some businesses allow customers to 'buy now, pay later' which means they are offered  dealcompassioncreditprofit. The length of time allowed in which to pay can be reduced to get cash into the business quicker. A business struggling financially may have to accept that plans to  createextendexpandreduce are too risky and cannot go ahead. They should focus on repaying  insurancedetailscustomersdebts first, and think about investing in the business later, when their financial position has improved. 

This is your 1st attempt! You get 3 marks for each one you get right. Good luck!

Pass Mark
72%