QUESTION THREE [25]

3.1 Analyse the reasons for a business holding cash balances. (5)

3.2 Describe the consequences of over / under investment in current assets. (2)

3.3 Discuss three (3) different forms of finance and provide an example of each. (6)

3.4 Differentiate between Standard Income Tax on Employees and Provisional tax. (2)

3.5 Describe any five (5) reasons why an organisation chooses to grant credit. (10)