M3 & D1
Wednesday, 16 February 2011
Inflows and outflows
• To achieve this criteria you are required to analyse the
implications of regular and irregular cash inflows and
outflows for a business organisation. The best way to
answer this task is to look at the cash flow forecast you
have produced for Virgin Racing in P6 and identify what
the regular in irregular cash inflows and outflows are.
From this you then need to identify if the business has
too many outflows or not. If there are too many
outflows you need to suggest ways the business could
overcome these problems
This provides evidence for M3
Importance of Cash-flow
• For the final task for this Unit you must
evaluate the importance of cash flow and
break even for the effective management of
business finance. To evaluate you need to look
at why businesses need to manage their
finances and what benefits and drawbacks it
will provide for Virgin Racing.
This provides evidence for D1