Question: What problems do small businesses face when estimating the CCC?

What problems do small businesses face when estimating the CCC?

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Small businesses face several problems when estimating the Cash Conversion Cycle CCC The CCC represents the time it takes for a business to convert its investments in raw materials into cash flow from sales Some of the key challenges faced by small businesses in estimating the CCC are 1 Inadequate financial data Small businesses often lack the necessary financial data and infrastructure to accurately estimate the CCC They may have limited access to historical financial statements inventory records or sales data making it challenging to calculate the cycle accurately 2 Complex supply chain Small businesses may have complex and fragmented supply chains which can make it difficult to track the movement of inventory and accurately measure the time it takes to convert it ... View full answer

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