Edexcel IGCSE Business Studies 3.1.1 Need for finance
Practise recognising why businesses need finance, from short-term cash needs to long-term start-up or expansion decisions.
- Syllabus
- First assessment 2019
- Course
- Business Studies 4BS1
Exam points
- define short-term finance and link finance needs to start-up, expansion or cash pressure
3.1.1 Need for finance question 1
[Maximum number: 1]
Lavender, a Malaysian business, started with bakery, patisserie and takeaway shops. It has now developed into several other businesses. L.café is a self-serve café selling a variety of cakes and drinks. L.bistro is a casual dining place with a selection of Asian foods. L.table is a formal restaurant that uses high quality and organic ingredients.
(Source adapted from: https://www.lavender.com.my/about-us-c1kfx)
Define the term short-term finance.
AO1-1 mark
Award 1 mark for a correct definition of short-term finance.
Money borrowed that must be paid back within 12 months (1).
(1)
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