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Questions and Answers
What does cashflow refer to?
What does cashflow refer to?
- The movement of money in and out of a business (correct)
- The number of employees in a business
- The number of products sold by a business
- The total assets of a business
Why is cashflow important for a business?
Why is cashflow important for a business?
- It helps in determining the financial health of the business (correct)
- It determines the number of competitors in the market
- It indicates the market share of the business
- It shows the number of customers served by the business
What is a positive cashflow indicative of?
What is a positive cashflow indicative of?
- The business is generating more cash than it is spending (correct)
- The business is over-investing in non-liquid assets
- The business is facing financial difficulties
- The business is not making any profits
Which of the following best describes positive cashflow?
Which of the following best describes positive cashflow?
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What impact does negative cashflow have on a business?
What impact does negative cashflow have on a business?
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What is the primary purpose of cashflow management for a business?
What is the primary purpose of cashflow management for a business?
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