A business's sales are rising sharply but its bank balance is falling. What is happening?

Q: How do I try a free CXC CAPE Management of Business question?

Just tap any of the four options on this page — no signup, no card, nothing to install. You'll see the correct answer and a full mark-scheme-style explanation within a second. Each visit shows a fresh randomly-picked question from the live CXC CAPE CSEC Management of Business bank, so you can keep refreshing to try different ones before deciding whether to create a free account for daily access.

Q: Is Kramizo really free for CXC CAPE Management of Business students?

Yes — completely free. Every student gets 45 questions a day on the free plan, across any board and any subject, with no card required and no trial countdown. Kramizo's optional Pro plan removes the daily cap and adds analytics, but the free plan is genuinely free forever. We make money from the small percentage of students who choose to upgrade — not from selling data or ads.

Q: Are the Management of Business questions aligned to the CXC CAPE CSEC syllabus?

Every question is written against the published CXC CAPE CSEC Management of Business syllabus and reviewed for accuracy before being added to the bank. We match the command words (state, describe, explain, evaluate), mark allocations, and difficulty tier you'll see on real CXC CAPE past papers. Explanations are written in the style of official examiner mark schemes so students learn exactly what marks are being awarded for.

Question

A business's sales are rising sharply but its bank balance is falling. What is happening?

Accepted Answer

Growth is consuming working capital faster than it generates cash — Award 1 mark. Stock must be bought and staff paid before customers settle, so each additional credit sale widens the gap. This is overtrading.

Answer

It has stopped reinvesting profit

Answer

Growth is consuming working capital faster than it generates cash

Answer

It is holding too little inventory

Answer

Its fixed costs have risen faster than sales

One real Management of Business question.No signup. 30 seconds.

One real Management of Business question.
No signup. 30 seconds.