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Questions and Answers
What is the primary reason businesses need to manage their cash carefully?
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?
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?
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?
What is the consequence of poor cash management in a business?
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What is the purpose of managing cash inflows in a business?
What is the purpose of managing cash inflows in a business?
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