Cambridge IGCSE Business Studies 0450

The life cycle of a business consists of four phases”. Each phase has its own special features and challenges. All successful businesses will go through these phases more than once. The company has no long-term debt. That helps when it is not generating positive cash flow: No worries about generating steady, predictable streams of cash from operations to meet interest payments. It also has little need to borrow in substantial amounts to fund huge investments in plant and property. As a new public company, nonetheless, once a quarter it will need to explain performance thoroughly and present optimistic projections for how profits will come about eventually.