Methods to improve cash flow:

• Raising capital provides an immediate cash injection
• Match the source of cash inflow with its description:

  Sales Revenues ↔️ Income from selling goods or services

  Loans ↔️ Funds borrowed from financial institutions

  Investment Capital ↔️ Money received from investors

  Asset Sales ↔️ Income from selling property
• What is the primary goal of cash flow management?

  Maintain financial stability
• Sales revenues are the primary source of cash inflow for most businesses.


  True
• Negotiating better credit terms improves cash flow timing
• Businesses can employ several strategies to boost their cash inflows
• Businesses can employ several techniques to reduce their cash outflows
• Managing inventory reduces holding costs but may lead to stockouts if demand is underestimated.

  True
• A bank loan used to expand facilities is an example of cash inflow from a loan
• Frees up cash tied to stock but risks stockouts if demand is underestimated inventory
• A bank loan used to expand facilities is an example of a loan
• Reducing expenses increases profitability but may impact product quality.

  True
• Match the cash inflow strategy with its disadvantage:

  Raising Capital ↔️ May increase debt

  Managing Inventory ↔️ Risk of stockouts

  Adjusting Credit Terms ↔️ Strains supplier relationships

  Improving Collection Processes ↔️ Requires investment in technology
• Match the cash outflow technique with its disadvantage:

  Reducing Expenses ↔️ Could impact product quality

  Negotiating Better Credit Terms ↔️ Strains supplier relationships

  Delaying Payments ↔️ May damage supplier trust

  Leasing Assets ↔️ Higher total cost over time
• Match the cash flow method with its disadvantage:

  Raising Capital ↔️ May increase debt

  Managing Inventory ↔️ Risk of stockouts

  Adjusting Credit Terms ↔️ Strains supplier relationships

  Reducing Expenses ↔️ Could impact product quality
• Order the primary sources of cash inflow from ongoing to immediate:

  1️⃣ Sales Revenues

  2️⃣ Loans

  3️⃣ Investment Capital

  4️⃣ Asset Sales
• Reducing expenses can increase profitability and cash flow, but it may impact product quality or service levels.

  True
• Order the methods to reduce cash outflow from lowest risk to highest risk in terms of supplier relationships.

  1️⃣ Reducing Expenses

  2️⃣ Negotiating Better Credit Terms

  3️⃣ Delaying Payments

  4️⃣ Leasing Assets
• Order the strategies to boost cash inflow from easiest to implement to most complex:

  1️⃣ Adjusting Credit Terms

  2️⃣ Improving Collection Processes

  3️⃣ Managing Inventory

  4️⃣ Raising Capital
• Match the technique to reduce cash outflow with its advantage:

  Reducing Expenses ↔️ Increases profitability

  Negotiating Better Credit Terms ↔️ Improves timing of outflows

  Leasing Assets ↔️ Low upfront cost

  Delaying Payments ↔️ Temporarily retains cash
• Reducing expenses can increase profitability and cash flow but may impact product quality or service levels.


  True
• What are key methods to improve cash flow?

  Raising capital, managing inventory
• What is the impact of adjusting credit terms on cash flow timing?

  It improves cash flow
• Investment capital is received in exchange for equity in the business.


  True
• Reducing expenses increases profitability and cash flow.


  True
• What are key methods to minimize cash outflows?

  Reducing expenses, negotiating terms
• Order the strategies to boost cash inflow based on their immediacy of impact:

  1️⃣ Raising Capital

  2️⃣ Adjusting Credit Terms

  3️⃣ Managing Inventory
• Businesses can improve their financial stability by optimizing their cash inflows.

  True
• Businesses can maintain financial stability by managing cash outflows effectively.


  True
• Sales revenues are the primary source of ongoing cash inflow for a business.

  True
• Match the cash outflow reduction method with its advantage:

  Reducing Expenses ↔️ Increases profitability

  Negotiating Better Credit Terms ↔️ Improves timing of cash outflows

  Delaying Payments ↔️ Temporarily retains cash

  Leasing Assets ↔️ Low upfront cost
• Delaying payments to suppliers temporarily retains cash but may damage supplier trust and credit rating
• Match the strategy to boost cash inflow with its disadvantage:

  Raising Capital ↔️ May increase debt

  Managing Inventory ↔️ Risk of stockouts

  Adjusting Credit Terms ↔️ Can strain relationships
• Reducing expenses increases profitability and cash flow but could impact product quality.


  True
• Cash flow management is the process of optimizing the timing and amount of cash inflows and outflows
• Managing inventory frees up cash tied to stock but carries the risk of stockouts
• Effective cash flow management involves understanding methods to improve both inflows and outflows
• One example of investment capital as a cash inflow is receiving seed funding from venture capitalists.
• Minimizing sources of cash outflow is crucial for improving a business's cash flow.outflow
• Leasing assets involves low upfront costs but higher total costs over time and no asset ownership