Favell is a woodworker. He is planning to set up his own woodworking business. He plans to use marketing to help his business become established in the local area. Favell thinks cash flow will be a problem because his business will have a lot of cash outflows. A friend has suggested he prepares a cash flow forecast.

1. (a)What is meant by 'marketing'?[2]
2. (b)Identify two possible cash outflows for Favell's business.[2]
3. (c)Identify and explain two benefits for any business of preparing a cash flow forecast.[4]
4. (d)Favell is looking at various methods of promotion for his business. Identify and explain three suitable methods of promotion that Favell could use to attract customers.[6]
5. (e)Favell needs $10000 to buy a motor vehicle so that he can carry all his equipment. He is planning to ask the bank for an overdraft. Do you think this is the most suitable source of finance for him to choose? Justify your answer.[6]