Practise using cash-flow information to calculate balances, interpret cash shortages and explain why cash matters to business survival.
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.
Analyse the importance of cash to the success of Ocean Vibes
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
| 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) |
Irsi Chocolatier is a chocolate shop in Brussels, the capital city of Belgium. There are many other chocolate shops nearby. Opened in 1989 by the Corne family the business now has four directors and three employees. Florent Corne is the Managing Director with three other family members as Directors. Irsi Chocolatier opens from Tuesday till Saturday. The shop sells a variety of handmade chocolates and jelly fruit sweets. It delivers locally and has a website for information purposes only.
Which one of the following is the difference between cash inflow and cash outflow?
Select one answer.
Opening balance
Net cash flow
Closing balance
Cash flow forecast
B
Outline one reason why cash might be important to Artify Studio.
AO2 = 2 marks
Award 1 mark for identifying a reason why cash is important to Artify Studio, plus 1 further mark for linking it to the context of the question.
- It allows Artify Studio to pay suppliers for the art materials they sell (1) and by paying on time help to build a positive relationship between the business and supplier (1).
NB Do not accept a reason that is not in the context of Artify Studio.
Accept any other appropriate response.