Practise cash-importance questions by linking cash to payments, insolvency risk and the difference between profit and available money.
In 2023, the monthly minimum wage in Portugal was €820.00
In 2024, the government increased this by 3.6%.
Analyse the importance of cash to the success of Ocean Vibes.
Question
Number
Analyse the importance of cash to the success of Ocean Vibes
Indicative content
Mark
4 (b)
AO2-3 marks AO3-3 marks
AO2
- Ocean Vibes requires cash to pay the wages and salaries of its boat tour guides and sales team
- Ocean Vibes need cash to pay its overheads such as fuel and other equipment for the boat
AO3
- If Ocean Vibes is unable to pay the wages of the tour guides on time, the guides are likely to leave the business to work for a competitor
- If Ocean Vibes runs out of cash and is unable to pay its liabilities, then the business may become insolvent and close down
(6)
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-2
- Limited application of knowledge and understanding of business concepts and issues to the business context. (AO2)
- Attempts to deconstruct business information and/or issues, finding limited connections between points. (AO3)
Level 2
3-4
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies. (AO2)
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies. (AO3)
Level 3
5-6
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout. (AO2)
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning. (AO3)