Key term
CCEA AS-Level Business 3210
Enterprise and Entrepreneurship
The Central Purpose of Business Activity
Forms of Business Ownership
Stakeholder Groups
Markets and Market Forces
Quality Management
Topic overviewWhat is quality?Total quality management, quality assurance and quality control definedThe advantages and disadvantages of TQMThe advantages and disadvantages of quality assurance and quality controlISO 9000 certification and the quality policyQuality control and quality assurance reviewedTQM, control and assurance comparedThe approaches to quality, and the case for and against TQMQuality control and quality assurance weighedISO 9000 certification, and how quality is measuredQuality as a dimension of competitiveness
Productivity and Investment
Organisational Design
Topic overviewHierarchy, span of control, chain of command and delegationCentralised, decentralised, tall, flat and matrix structuresCentralisation versus decentralisation, delayering, and the effects of designCentralisation and decentralisation weighedTall and flat structures weighedOutsourcingCentralisation, structure and outsourcing
Investing in People
Topic overviewSuccession planning, skills audits and the factors behind people investmentThe benefits and drawbacks of investing in peopleMethods of recruitment and selectionTraining and appraisal methodsOnline recruitment and selectionOnline training and appraisalInduction training: content, benefits and drawbacksOn-the-job training: methods, advantages and drawbacksOff-the-job training: methods, advantages and drawbacksContinuing professional developmentChoosing a training methodInternal and external methods of recruitmentInternal versus external recruitment weighedThe stages of selection, and the methods usedPsychometric testing: what it measures and what it missesPsychometric testingThe purpose of appraisal, and its benefits and drawbacksTechnology in the appraisal processOnline recruitment and selection technologyOnline training and appraisal technologyThe benefits and drawbacks of online HR processes
Motivation
Topic overviewTaylor's scientific management and Maslow's hierarchyHerzberg's two-factor theory, and the limits of each theoryTaylor and Maslow reviewedHerzberg's hygiene factors and motivators in detailMonetary and non-monetary methods of motivationLeadership styles, and choosing a method of motivationThe monetary methods of paymentThe monetary methods weighed, and calculating commissionJob design, empowerment, team working and flexible workingRecognition and development, and how non-monetary methods link to theory
Principles of Management and Leadership
Market Size, Share and Growth
The Degree of Competition in a Market
Market Research
The Marketing Mix
Elasticity of Demand
The Product Life Cycle
Market Planning and Strategy
E-Business and E-Commerce
Sources of Finance
Break-Even Analysis
Cash Flow
Cash Flow Forecasts
Budgeting
Cash Flow
- 3 subtopics
- 9 things to know
- Unit AS 2
What Cash Flow covers
Cash flow is examined in Unit AS 2, Growing the Business. It covers difference between cash and profit, cash flow problems, the working capital cycle and credit control and improving cash flow, and the long-term cost of each method.
Where it is assessed
Unit AS 2
Growing the Business, written examination, 20% of A level.
Check the CCEA specification ↗The 3 subtopics
Each one has its own page. CCEA AS Business students sit this topic in the first year.
- Difference between cash and profitCash in a business context, profit for a business and fundamental cause of the divergence between cash and profit.Open →
- Cash flow problems, the working capital cycle and credit controlFour common causes of cash flow problems, working capital cycle and three credit control measures a business can use.Open →
- Improving cash flow, and the long-term cost of each methodShort-term and long-term consequences of delaying payment to suppliers, debt factoring and one short-term benefit and one long-term drawback of factoring.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
Key term
What warns of a cash flow problem, what is the working capital cycle, and how are debtor days calculated?
Key term
What accounting concept is used to calculate profit, and what does it involve?
Key term
How does sale and leaseback improve cash flow, and what is its long-term cost?
Key term
Why is cash flow critical to a business's survival even when it is trading profitably?
Key term
What are the short-term and long-term consequences of delaying payment to suppliers?
Key term
What is cash in a business context?
Key term
What is overtrading?
Numbers
A factor advances 85% of a business's £80,000 of receivables. Calculate the cash received immediately.
Take Cash Flow further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Cash vs Profit
Cash: money actually moving into and out of the firm. Profit: revenue less all expenses over a period, whether or not money has moved.
Overtrading vs Debt factoring
Overtrading: expanding faster than working capital can support. Debt factoring: selling receivables to a third party for immediate money at a discount.
Questions from this topic
Each one with the model answer underneath.
- 1
What is cash in a business context?
Model answer
Cash is the actual money available to a business at any given time, representing liquid funds that can be used immediately for transactions.
- 2
Define profit for a business.
Model answer
Profit is the surplus remaining after all business expenses have been deducted from total revenue over a period of time.
- 3
How can a business be profitable yet still experience cash flow problems?
Model answer
If revenue is recorded before payment is actually received from customers, the business shows profit on paper but lacks the cash to meet immediate obligations.
- 4
Explain how a business could have positive cash flow while making a loss.
Model answer
A business can receive cash advances or loans that boost its cash position, even though its expenses exceed its revenue, resulting in a loss.
- 5
What accounting concept is used to calculate profit, and what does it involve?
Model answer
Profit is calculated using the accruals concept, where income and expenses are recorded when they are earned or incurred, not when cash actually changes hands.
- 6
What does cash flow measure?
Model answer
Cash flow measures the actual movement of money into and out of a business during a specific period.
What is inside Levo
Six ways to work the same material.
Cash Flow revision questions
- Is Cash Flow examined at AS in CCEA Business?
- Yes. It sits in Unit AS 2, which you take in the first year, so it is on the AS paper as well as counting towards the full A level.
- What does Cash Flow cover in CCEA AS-Level Business?
- 3 subtopics: difference between cash and profit, cash flow problems, the working capital cycle and credit control and improving cash flow, and the long-term cost of each method. Each one has its own page with questions and model answers.
- How is Cash Flow organised?
- By the CCEA 3210 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Cash Flow, on a schedule.
Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.
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