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NotesBusiness ManagementTopic 3.7
Unit 3 · Finance and Accounts · Topic 3.7

IB Business Management — Cash flow

Topic 3.7 covers cash flow forecasting, the difference between profit and cash, and strategies for managing cash flow problems. Students learn to construct and interpret cash flow forecasts, identify potential shortfalls, and recommend solutions — a key quantitative skill in IB BM.

Exam technique guidePractice questions

What you'll learn in Topic 3.7

  • 3.7.1 Cash flow basics
  • 3.7.2 Cash flow forecasts
  • 3.7.3 Causes of cash flow problems
  • 3.7.4 Strategies to improve cash flow

Exam relevance

Business Management is assessed through Paper 1 (case study) and Paper 2 (structured questions). Expect to apply these concepts to business scenarios using appropriate tools and terminology.

Suggested study order: Read the notes for each sub-topic below → test yourself with flashcards → attempt practice questions → review exam technique.

Study resources — 3.7 Cash flow

3.7.1

Cash flow basics

Notes
3.7.2

Cash flow forecasts

Notes
3.7.3

Causes of cash flow problems

Notes
3.7.4

Strategies to improve cash flow

Notes

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Topic 3.7 Cash flow forms a core part of Unit 3: Finance and Accounts in IB Business Management. Mastering these concepts will strengthen your understanding of connected topics across the syllabus and prepare you for exam questions that require analysis, evaluation, and real-world application.

Frequently asked questions

What does Topic 3.7 Cash flow cover in IB Business Management?
Topic 3.7 covers cash flow as part of the IB BM syllabus. Students learn key business concepts, tools, and frameworks that are assessed in Paper 1 (case study) and Paper 2 (structured questions).
How should I revise Cash flow for IB Business Management exams?
Start with the micro-topic notes to build understanding, then use flashcards for key terms and formulas. Practise applying concepts to case study scenarios and review how marks are allocated in IB mark schemes.
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