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15
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What might happen if a business owner does not manage money properly?
They may spend more than they have leading to cash flow issu
They can easily expand their business
They will always have enough money
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15
×
Which of the following could help a business handle unexpected costs better?
Saving money for emergencies
Reducing the number of employees
Increasing prices for all customers
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×
lifesaver
Give 5 points!
Oops!
×
gift
Win 20 points!
Okay!
×
gift
Win 20 points!
Okay!
×
banana
Go to last place!
Oops!
×
trap
No points!
Oops!
×
seesaw
Swap points!
Okay!
×
rocket
Go to first place!
Okay!
×
thief
Give points!
5
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15
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25
15
×
What is a risk of giving customers too much credit (letting them pay later)?
The business might lose less money
The business may run out of cash if payments are delayed
Customers might pay sooner than expected
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15
×
What might happen if a business invests too much in fixed assets (e.g. equipment)?
It will make immediate profits
It may drain cash reserves
It will have more cash flow
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15
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Which of the following is an example of an unexpected expense?
Emergency equipment repairs
Routine office supplies
Regular staff salaries
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15
×
What does "overtrading" mean for a business?
Having too many employees
Staying small to keep costs low
Growing too fast without enough cash to support it
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15
×
What is a key part of good financial management?
Spending as much as possible on advertising
Understanding money flow in and out of the business
Ignoring financial records
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15
×
What happens if a business takes out too many loans?
Paying more in interest
Increased sales
More profits
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×
banana
Go to last place!
Oops!
×
rocket
Go to first place!
Okay!
×
gift
Win 10 points!
Okay!
×
banana
Go to last place!
Oops!
15
×
Instead of investing too much in equipment what can a business do to save money?
Hire more employees
Lease equipment
Stop buying any equipment
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15
×
What can seasonal businesses do to survive in off-seasons?
Increase their marketing budget
Plan carefully to manage costs
Stop selling products during the off-season
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15
×
What might happen if a business faces unexpected expenses like broken equipment?
They could run into financial trouble
They will be able to continue business as usual
The business will immediately make a profit
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15
×
What can happen to a business if it overtrades?
It can easily make more profits
It may spend more than it can handle leading to financial tr
It will never have cash flow issues
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15
×
How can changing customer tastes affect a business?
It can help increase sales
It does not have any impact on a business
It can hurt cash flow if not adapted to
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