Methods to improve cash flow:

• Effective cash flow management provides financial stability for a business.


  True
• What is the impact of slow payment from customers on cash flow?

  Creates a cash shortfall
• Low revenue generation can lead to negative cash flow.

  True
• What is negative cash flow?

  Spending more than receiving
• Seasonal fluctuations can cause periodic cash flow deficits.


  True
• Why is cost control crucial for improving cash flow?

  Reduces expenses
• How does outsourcing non-core functions reduce costs?

  Lowers in-house staffing costs
• Effective cash flow management involves monitoring and planning the flow of money both into and out of the organization
• One key cause of negative cash flow is slow payment from customers
• Low revenue generation can lead to negative cash flow


  True
• Payment plans can attract budget-conscious customers and stabilize cash flow

  True
• Effective inventory management frees up cash tied up in excess inventory
• Outsourcing non-core functions reduces in-house staffing and operational costs


  True
• Reduced carrying costs lower expenses associated with storing and insuring excess inventory
• Why is cash flow management crucial for a business's financial health?

  Ensures operational solvency
• What does operational solvency guarantee for a business?

  Meets short-term obligations
• Order the key causes of negative cash flow in a business:

  1️⃣ Slow payment from customers

  2️⃣ Overspending on inventory

  3️⃣ High operating expenses

  4️⃣ Lack of sales

  5️⃣ Debt repayments

  6️⃣ Seasonal fluctuations
• What is one example of high operating expenses that can cause negative cash flow?

  Excessive spending on utilities
• How does excessive spending on operating expenses affect cash flow?

  Outpaces income
• Match the sales strategy with its benefit:

  Sales Promotions ↔️ Boosts immediate sales

  Payment Plans ↔️ Attracts budget-conscious customers

  Upselling/Cross-selling ↔️ Increases average order value

  Loyalty Programs ↔️ Retains customers

  Targeted Marketing ↔️ Improves conversion rates
• Negotiating better supplier terms can improve short-term liquidity.


  True
• Order the key causes of negative cash flow in a business:

  1️⃣ Slow payment from customers

  2️⃣ Overspending on inventory

  3️⃣ High operating expenses

  4️⃣ Lack of sales

  5️⃣ Debt repayments

  6️⃣ Seasonal fluctuations
• Match the benefit of effective cash flow management with its description:

  Operational solvency ↔️ Meets short-term obligations

  Investment opportunities ↔️ Allows for growth and expansion

  Stability ↔️ Provides a solid financial foundation

  Enhanced reputation ↔️ Builds trust with suppliers
• High operating expenses, such as excessive spending on utilities, can outpace incoming cash
• Match the sales strategy with its description:

  Sales Promotions ↔️ Offer discounts or special deals

  Payment Plans ↔️ Allow customers to pay in installments

  Loyalty Programs ↔️ Reward repeat purchases

  Upselling ↔️ Encourage higher-priced purchases
• Targeted marketing improves conversion rates and maximizes return on investment

  True
• Reducing overhead costs lowers fixed costs and increases available cash
• Inventory management reduces the amount of capital invested in inventory

  True
• Inventory management improves cash flow by avoiding overstocking
• Having a positive cash flow ensures a business can cover its expenses and pay its debts
• Offering seasonal sales is a method to improve cash flow through sales promotions
• Invoice factoring involves selling outstanding invoices to a third party for a discounted rate.
• What does outsourcing non-core functions reduce in a business?

  In-house staffing and costs
• A business line of credit provides flexible access to funds
• Crowdfunding provides a cash injection without incurring debt
• How does enhanced operational efficiency improve cash flow in inventory management?

  Meets customer demand
• What does good debtor management reduce in a business?

  Late payments and bad debts
• Having a positive cash flow ensures the business can cover its expenses
• Effective cash flow management enhances a business's reputation
• Overspending on inventory can drain a business's reserves