Provide one benefit of subsidies to the Indian leather businesses and European farmers.

Define the term ‘rights issue’.

Sheila and her friend Alison have decided to run their own mobile hairdressing business using the training they have received at college and the experience they both gained working for three years for a local hairdresser. Investigate, locally, the equipment and working stock they will need. From this, estimate the capital they will need to set up the business and survive in the first year. Write a brief report on your findings.

Define the term ‘direct costs’

Define the term ‘investment appraisal’.

Dun and Bradstreet have reported that nearly half of all Australian businesses operated with a negative cash flow over recent financial years. This figure is worrying as $80 \%$ of business failures are related to cash flow pressures rather than poor sales. Many firms with large profits fail to manage their cash payments or collect enough cash in a timely manner $-$ resulting in negative net cash flow. This situation occurs despite businesses making sales and recording profits. If credit and other forms of finance were to 'become scarce' then it becomes more likely that businesses will fail. Slow customer payments to suppliers $-$ a persistent culture in Australian businesses means that payment terms have risen to $54$ days on average - making cash flow even worse for some firms.

Suggest two reasons why many Australian businesses have been operating with a negative cash flow despite being profitable.

With reference to one organisation that you have studied, examine how change and culture might affect the way you measure business efficiency.

Define the term ‘revenue stream’.

With reference to one or two organisation(s) that you have studied, evaluate different strategies businesses can adopt to increase revenue in a globalised business environment.

What is the difference between a forecast and a budget?

Define the term ‘liquidity’.

Explain two reasons why cost data would be useful for operations managers.

Explain why it would be useful to an operations manager to know the break-even level of production for their factory.

Explain to a manager what the efficiency ratios could tell her about the business.