Author Question: What is cash flow? Why is cash flow important to a business?[br][br][b][color=#566D7E]Question ... (Read 124 times)

kfurse · **on:** Jul 14, 2018

What is cash flow? Why is cash flow important to a business?

Question 2

Maslow's hierarchy of needs includes psychological needs, safety needs, social needs, security needs, and self-importance needs.

Indicate whether the statement is true or false

lkoler · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

Cash flow is the movement of money into and out of an organization. The goal is to have sufficient money coming into the firm in any period to cover the firm's expenses during that period. Expenses--personnel, inventory, materials--come with costs and it's necessary for a business to have sufficient cash flow to pay for those expenses. Often, cash flow problems are a result of speculative production. Speculative production is the time lag between the actual production of goods and when the goods are sold. Note: The next question asks students for more details concerning speculative production.

Answer to Question 2

False