Cash Flow Management in Business
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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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