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Cash Flow Management in Business

5 Questions

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Cash Flow Management in Business

Created by

@InstructivePrudence8295

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Questions and Answers

What is the primary reason businesses need to manage their cash carefully?

To invest in stocks

To maintain a positive balance sheet

To ensure sufficient funds for immediate expenses (correct)

To save for future expansion

What is the main goal of managing cash flows in a business?

To ensure cash outflow matches cash inflow

To ensure cash inflow meets cash outflow in time (correct)

To ensure cash inflow exceeds cash outflow

To ensure cash inflow is maximized

How can businesses ensure they have enough cash to meet their payment obligations?

By aligning cash inflows with cash outflows (correct)

By investing in high-yield bonds

By maximizing profits

By delaying payments as much as possible

What is the consequence of poor cash management in a business?

<p>Inability to pay bills on time</p> Signup and view all the answers

What is the purpose of managing cash inflows in a business?

<p>To meet cash outflows</p> Signup and view all the answers

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