HSC Business Studies Question Thread

[Thomasaa]

I wrote an essay on the interdependence of finance with all the other key business functions which got full marks lol. Would you like me to send you my marketing section? : )

Yes please

[Razeen25]

Hellooo!

I'm confused. What's the difference between cash flow and working capital? Specifically in Financial management strategies, there is Cash Flow Management and Working Capital Management, and I'm kinda confused regarding when to know which to use. They seem the same to me .

Thank you!

[martinarena_]

Hellooo!

I'm confused. What's the difference between cash flow and working capital? Specifically in Financial management strategies, there is Cash Flow Management and Working Capital Management, and I'm kinda confused regarding when to know which to use. They seem the same to me .

Thank you!

Hi there!
I'm going to try my best to explain it (note to anyone reading this, if I've explained it wrong/my understanding of it is wrong, please let me know  ). Cash flow relates to how much cash is coming into the business and how much cash is leaving the business (this can be seen by using the cash flow statement). So, cash flow managment, would be ensuring that there is an adequate amount of cashing coming into the business, and that not too much cash is leaving the business (as this will lead to cash shortages). On the other hand, working capital refers to the business's liquidity - that is whether the business will be able to pay back its short-term debts on time (this information can be gathered from the balance sheet). Thus, working capital management is ensuring that the business has enough assets to meet its liabilities, AS WELL as making sure that the business doesn't have too many assets left within the business either (as this will result in a very liquidity ratio, which will mean they have excess stock). Usually, the ratio 2:1 is what is aimed for.
Hope that helps

[emilyygeorgexx]

Hellooo!

I'm confused. What's the difference between cash flow and working capital? Specifically in Financial management strategies, there is Cash Flow Management and Working Capital Management, and I'm kinda confused regarding when to know which to use. They seem the same to me .

Thank you!

Hey!

Everything above that martinarena_ said was perfect! I also just might throw in some strategies that you might use to overcome issues regarding financial management. For cash flow management, strategies that you could undertake to ensure your cash flow is always positive is distribution of payments, discount for early payment and factoring.

Strategies to ensure business has high working capital, in other terms liquidity, is through leasing or sale and lease back. Good case study for this is Qantas as they have undertaken both these strategies. Otherwise any other strategies to improve working capital will be through controlling your current assets and your current liabilities, ensuring that you have enough (but not too many) assets to cover your financial obligations in the short term.

Hope this helps!

[Razeen25]

Hi there!
I'm going to try my best to explain it (note to anyone reading this, if I've explained it wrong/my understanding of it is wrong, please let me know  ). Cash flow relates to how much cash is coming into the business and how much cash is leaving the business (this can be seen by using the cash flow statement). So, cash flow managment, would be ensuring that there is an adequate amount of cashing coming into the business, and that not too much cash is leaving the business (as this will lead to cash shortages). On the other hand, working capital refers to the business's liquidity - that is whether the business will be able to pay back its short-term debts on time (this information can be gathered from the balance sheet). Thus, working capital management is ensuring that the business has enough assets to meet its liabilities, AS WELL as making sure that the business doesn't have too many assets left within the business either (as this will result in a very liquidity ratio, which will mean they have excess stock). Usually, the ratio 2:1 is what is aimed for.
Hope that helps

Thank you so so much!!

Hey!

Everything above that martinarena_ said was perfect! I also just might throw in some strategies that you might use to overcome issues regarding financial management. For cash flow management, strategies that you could undertake to ensure your cash flow is always positive is distribution of payments, discount for early payment and factoring.

Strategies to ensure business has high working capital, in other terms liquidity, is through leasing or sale and lease back. Good case study for this is Qantas as they have undertaken both these strategies. Otherwise any other strategies to improve working capital will be through controlling your current assets and your current liabilities, ensuring that you have enough (but not too many) assets to cover your financial obligations in the short term.

Hope this helps!

Thank you for these strategies too! My exam is on Monday, so this helps a lot. Appreciate .

[emilyygeorgexx]

Thank you so so much!!

Thank you for these strategies too! My exam is on Monday, so this helps a lot. Appreciate .

Ah good luck! Mine is next Wednesday (4th April).

What 2 topics have you covered?

[Razeen25]

Ah good luck! Mine is next Wednesday (4th April).

What 2 topics have you covered?

GOOD LUCK on your half yearly too!!

My school has covered Operations and Finance so faar, although our exam was mostly finance smh. What about yours? : )

[emilyygeorgexx]

GOOD LUCK on your half yearly too!!

My school has covered Operations and Finance so faar, although our exam was mostly finance smh. What about yours? : )

Congrats on doing your exam, I bet you did great!

We have covered Marketing and Finance. Our exam is supposed to be heavily finance based though, so hopefully it won't be too hard!

Only downside, my school is trying to model the actual HSC, so my business exam is the first 3 hour exam I will ever be sitting (opposed to all my other exams which as about 2 to 2.5 hours). Hopefully, I have enough time to do everything!!

[Razeen25]

Congrats on doing your exam, I bet you did great!

We have covered Marketing and Finance. Our exam is supposed to be heavily finance based though, so hopefully it won't be too hard!

Only downside, my school is trying to model the actual HSC, so my business exam is the first 3 hour exam I will ever be sitting (opposed to all my other exams which as about 2 to 2.5 hours). Hopefully, I have enough time to do everything!!

Ahh thank you!! Hopefully I did decent  . Marketing and Finance, ahh. Well you seem well-prepared for the Finance content so I'm sure you'll do great ! That 3 hour exam though oh my, your school really is going extra! BUT HEY 3 hours is plenty I'm sure to get everything done : ). Update how you went!!

[emilyygeorgexx]

Ahh thank you!! Hopefully I did decent  . Marketing and Finance, ahh. Well you seem well-prepared for the Finance content so I'm sure you'll do great ! That 3 hour exam though oh my, your school really is going extra! BUT HEY 3 hours is plenty I'm sure to get everything done : ). Update how you went!!

I know right, 3 hours is such a long time! Probably made it like that because they are giving us the full deal: multiple choice, short answer, essay and report.

Never written a business essay under exam conditions before, I hope it goes alright!

Still currently in my prep for the exam but my mind and body is currently deteriorating, ahhhhh

Will update how it goes on Wednesday afternoon!

[jiliaaan]

Hey guys, does anyone have any case studies that i can use for a finance extended response please?

thank youuu!

[emilyygeorgexx]

Hey guys, does anyone have any case studies that i can use for a finance extended response please?

thank youuu!

What sort of case studies do you need for finance? Like specific syllabus dot points?

[LaraC]

Do you have the Qantas booklet? That is really great for finance as not many other businesses give away that much info. Also it is written alongside the syllabus

[jiliaaan]

What sort of case studies do you need for finance? Like specific syllabus dot points?

processes and influences of finance specifically 

[edumax]

If you're asked to reccommend a source of finance for $5M factory expansion, what would you choose?