2.1.4 Business Plan Quiz

What is a cash-flow forecast used for?

• To predict future sales

• To calculate employee salaries

• To show potential investors how money will be spent

• To determine product prices

What might a business plan include to help identify key tasks?

• A list of competitors

• An action plan

• A customer survey

• A product catalog

What is one of the key points mentioned in the document about planning?

• The importance of hiring experienced staff

• The relevance of a business plan in obtaining finance

• The necessity of a large marketing budget

• The benefits of international expansion

What is a prospectus used for when a company plans to raise money?

• To advertise products

• To publish important business information for investors

• To recruit new employees

• To launch a new product line

What is the predicted cash flow problem for Fishan's Ltd in March?

• Positive cash flow of £92,000

• Negative cash flow of £41,000

• Positive cash flow of £51,000

• Negative cash flow of £113,000

What is the main reason businesses fail according to the text?

• Poor marketing

• Lack of employees

• Poor cash flow

• High competition

What is the purpose of a cash-flow forecast?

• To list potential customers

• To plan cash inflows and outflows

• To hire new employees

• To design new products

What is the expected cash flow for Fishan's Ltd in March?

• Positive £92,000

• Negative £92,000

• Positive £41,000

• Negative £41,000

What is the expected cash flow for Fishan's Ltd in June to December?

• Positive cash flow

• Negative cash flow

• No cash flow

• High cash flow

What is the expected cash flow for Fishan's Ltd in May?

• Positive £113,000

• Negative £113,000

• Positive £87,000

• Negative £87,000