Business HELP URGENT

[Turbo93]

1.Am doing May/June 2008 paper 1 and I'm on question 1, having it hard to find with the calculations.

And the 2nd question Using an example, show how a business decision could damage the environment?
Could anyone help me with these two?
Thank you.

 

[rafae]

Okay, so for Question 1:
It goes as follows.
Part a)i): $9000. This is because this October's closing balance will automatically become November's opening balance.

Part a)ii): $10,000. This is because the formula goes as such:
Net cash flow= Closing cash flow balance - Opening cash flow balance
$1000= x - $9000
( 'x' is closing clash flow which is unknown at the moment)
Therefore, Closing cash flow becomes $9000 + $1000= $10,000

Part a)iii): This would go the same way.
Open cash flow balance= $10,000
Closing cash flow balance= $6000
The formula would again be:
Net cash flow= Closing cash flow - Opening cash flow
Net cash flow= $6000 - $10,000
Net cash flow= -4000, or (4000)
That is your answer to the first three parts.


For your second question, the answer could go as such.

Businesses can damage environments in many ways especially through their operations. Factories set up by business in order to produce goods in turn harm the environment. This is because the excess waste materials in the process of production need to be dealt with. Therefore, most businesses, in order to get rid of these wastes are bound to dump them somewhere. Actions like these cause land or noise pollution, which in turn damages the environment. For example, a business producing metal pipes will need to dump of their wastes in the appropriate places, therefore creating land pollution. When businesses take decisions like setting up factories near housing areas, or areas of wildlife habitats, they will inevitably damage it and thus it will create social costs.


This is just an extra explanation which is heavily stretched out. You won't need to include all this, but I just made it a bit longer to give you an easier idea of what the outcome of business decisions would be.
Furthermore, a 'social cost' is a cost which has to be paid by other than the business.
As the example above states, pollution is a social cost, as the society has to suffer from it, whereas the business is not.

If you have any further queries, just pm me.