Durban Dragons is a big football club. Recently fewer people have been watching its matches and ticket revenue is falling. Some people say that ticket prices for matches are too high and should be reduced. The club has high fixed costs and needs to improve its cash flow. The club directors have been trying to gain sponsorship and a number of businesses are very interested.

1. (a)What is meant by ‘cash flow'?[2]
2. (b)Give two examples of fixed costs that a business like a football club would incur.[2]
3. (c)Identify and explain two ways the cash flow of Durban Dragons could be improved.[4]
4. (d)Identify and explain two reasons why businesses might want to sponsor football clubs like Durban Dragons.[6]
5. (e)Do you think if Durban Dragons reduce ticket prices for matches this will increase revenue? Justify your answer.[6]