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Which factors might lead to a start-up actual cash flow

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Reference no: EM132942343

Problem 1. The net cash flow for the period can be calculated using the formula:

a. Opening Balance Plus Cash Inflows

b. Cash Inflows Less Clash Outflows

c. Cash Inflows Less Revenues

d. Closing balance less Cash Outflows

Problem 2. Which one of the following factors might lead to a start-up's actual cash flow being better than forecast?

a. Office Landlord increases the quarterly rent

b. Business to buy additional computer equipment

c. Customer are prepared to accept higher selling price

d. Application for government grant is rejected

Problem 3. Which one of the following factors might lead to a start-up's actual cash flow being worse than forecast?

a. Demand proves higher than expected

b. A successful advertising campaign boosts sales

c. Unexpected cost overruns to launch the web site

d. Suppliers demand a substantial price rise

Problem 4. Which one of the following would be a cash inflow for a start-up business?

a. Consultancy fee paid to web designer

b. Receipt of government grant

c. Lease payments on computer equipment

d. Stock bought for the warehouse

Reference no: EM132942343

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