Cash flow has been described as the lifeblood of a business. How would you explain this description

Question:

Cash flow has been described as the lifeblood of a business. How would you explain this description to someone who does not understand business finance?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Small Business Management Entrepreneurship and Beyond

ISBN: 978-0538453141

5th edition

Authors: Timothy s. Hatten

See More Books

Question Posted: Sep 24, 2012 07:16 AM

See More Questions

Cash management has been described as a risk control device rather than a driver of profitability. What exactly do you think thinks means?
A company's free cash flow has been declining steadily over the last five years. What does this decline likely mean to creditors and investors?
How would you explain "quality" in an orchestral performance? In what ways are the eight dimensions of quality in Table 15.2 useful in explaining the quality of a concert? In what ways are they not...
Molly earns a gross yearly salary of $132,676. She has no dependent children and made the following tax deductible purchases: Charitable contributions: $5,401 Student loan interest: $1,429 When she...
Find the maximum and minimum values, if they exist, of the function defined by f(x) = 4/x2 + 1 + 2
What are the two major approaches for testing IT system controls?
The pure shrinkage estimator is defined as $\hat{\beta}_{s}=c \hat{\beta}$, were $0 \leq c \leq 1$ is a constant chosen by the analyst. Describe the kind of shrinkage that this estimator...
The income statement of Health 24 City Club for the month ending August 31 shows Membership Dues Revenues of $25,000; Salaries Expense of $9,300; Repairs and Maintenance Expense of $2,400; and Net...
Solve the inequality involving absolute value. Enter the exact answer in interval notation. |x-2+5 13 To enter co, type infinity. To enter U, type U. Show your work and explain, in your own words,...
A local Pilates studio recently began offering a monthly subscription service for its patrons. Suppose a particular patron at this studio has the following willingness-to-pay schedule, per session....
Explain the difference between macro-aging and micro-aging accounts receivable schedules.
The sales projection for your retail business is $650,000. The industry average for the asset turnover ratio is 5. How much inventory (total assets) should you plan to stock?
What is the safety net provided to the commercial banking system? How might this be related to moral hazard? In this regard, what is the role of regulatory policy?
How is the market share of the business calculated?
What is a fundamental characteristic of fund accounting for nonprofits?
ACCT 326 Accounting System Review This project requires you to evaluate a PC-based accounting system to see how the system handles recording transactions, collecting data, and generating reports and...
answering these questions 1. What is allocation in accounting and why is it important? 2. How does the allocation process work for overhead costs? 3. What are the different methods used for cost...
What are the fundamental characteristic of fund accounting for nonprofits? Explain briefly
At 700 C, an YBa 2 Cu 3 O 7 sphere of 2 cm radius is abruptly exposed to 1 bar O 2 gas. Assuming DO = 10 5 cm 2 /s and diffusion as the rate-controlling process, calculate how long it will take...
For the given transfer function: Vo(s) / Vi(s) = (s^2C^2R^2 + 1) / (s^2C^2R^2 + 4sCR + 1) Assumiing that 1/(CR) = 120 PI so write the matlab code to find the magnitude plot
How has the role of CBA changed in the EU context?
Cash flow is more important than profit for a small business. Why? If your income statement shows a profit at the end of the month, how can anything be more important?
What is an organization and why are managers important to an organizations success?
Are all effective organizations also efficient? Discuss. If you had to choose between being effective or being efficient, which one would you say is more important? Why?
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $45,300. The machine's useful life is estimated at 10 years, or 403,000 units of...
14. (3 points) Write a program that ask the user for 1. their first name and 2. their last name, Enter first name: Matt Enter last name: Priem Hello Matt Priem! and then outputs a greeting similar to...
Given a sorted array 2, 5, 8, 12, 16, 18, 22, 25, 29, 32 and the following interpolation search algorithm. Show the steps of the algorithm when 25 is searched. Also, when 26 is searched. array a,...

Cash flow has been described as the lifeblood of a business. How would you explain this description

Question:

Step by Step Answer:

Cash is a critical asset to a business because it is needed to meet all th...View the full answer

Small Business Management Entrepreneurship and Beyond

Students also viewed these Management Leadership questions