Questions and Answers
What is the primary role of cash in a company, based on the text?
To finance the company's activities
What does 'Cash is king' imply?
Cash is the most valuable asset in the company
Who is ultimately responsible for managing cash within a company?
Finance director
In the context of cash management, what is the main consequence of poor credit control?
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How can a business prevent a cash shortage, as suggested in the text?
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What does a positive cash flow indicate about a business, based on the text?
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What is the main focus when trying to improve net cash flow?
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How does cash flow relate to the product life cycle according to the text?
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Why is cash flow forecasting considered important for businesses?
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What is working capital mainly used for in a business?
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Which of the following is NOT a factor that influences the accuracy of cash flow forecasting?
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In the context of the text, what best describes profit?
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