Business Studies · Oct / Nov 2020 · Paper 12 · Question 3

Veronique is bored with her work in a large factory. As a creative person, she would like to leave and start up a flower shop. Veronique has asked about micro-finance and prepared a cash flow forecast. An extract is shown in Table 3.1. Veronique has also carried out some market research and found out that the demand for flowers is likely to be high during festivals. She thinks she has the right characteristics to be a successful entrepreneur. Table 3.1 Extract from the cash flow forecast for Veronique’s flower shop for the first 3 months ($) Month 1 Month 2 Month 3 Cash in 500 1200 2000 Cash out 1500 1400 1200 Net cash flow (1000) (200) 800 Opening balance 0 (1000) (1200) Closing balance (1000) (1200) (400)

Read automatically from the paper; the printed page above is exact.