I need help with the following please:

If inflation is running at 5% per annum, what would you expect a business to do in a budgeting context? [4 Marks]

• (a) Increase the price of products and services by 5% across the board
• (b) Make provision for a 5% increase in the interest cost of loans from banks and other financial institutions
• (c) Make a provision for bad debts in the order of 5%
• (d) Changetherateofsuperannuationpaymentsto5%ofgrosssalariesandwages

If a business is overtrading, do you think the following rations would be higher or lower than normally expected? [4 Marks]

(a) Current ratio.

• (b)Average inventories turnover period.
• (c) Average settlement period for trade receivables.
• (d)Averagesettlementperiodfortradepayables

Can you think of an example of how the financial system enables: [2 Marks]

(a) an individual investor to reduce investment risk?

• (b)anindividualorcompanytoshareortransferrisks?

Explain how a large seasonal demand complicates inventory management and production scheduling. [3 Marks]