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This is a really topical part of Unit 2 – managing cash flow more effectively, and trying to maintain profits, is the number one priority of just about every business at the moment
In the Unit 2 exam, you might be asked to identify and explain one or more cash flow problems that a business is experiencing, and then to explain what actions could be taken to address or even better, solve the cash flow problem
Here is a mini exam-style exercise that builds on what we have covered so far.
There are two brief scenarios, and for each of those two, you have a choice of three solutions to the cash flow problem.
Choose the best solution for each of the scenarios and note down a brief justification for your choice