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A cash-trap business is one where all or most available cash is reinvested directly in the business, leaving little net value for investors. The business may look good, because it appears to have a high net worth, but has little chance of being able to liquidate the business.
An example of a cash-trap business could be a copper mine deep in the South American jungle. While it may look like a viable business, because it might have millions of dollars worth of equipment, it may actually be nearly worthless. If there is no more copper being produced, there is nothing to generate income. Because most of the equipment is very specialized, and expensive to move, there may not be a market for the company. The balance sheet may show significant assets, but if those assets can not be converted to cash, the business just becomes a big hole in the ground full of junk.
What else can I help you with?
Define cash economy?
In a cash economy all (or most) payments are made in cash - not by cheque, giro or plastic.
Do all banks have vaults for storing valuables and cash?
Not all banks have vaults for storing valuables and cash. Some smaller banks may not have vaults, while larger banks typically have secure vaults for storing valuables and cash.
Types of cash inflow?
There are a number of types of cash inflow. All of them may or may not be used at any time, depending on the type of business and its activities. The different types are cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities. The cash inflow entries are then divided into total cash flow, net cash flow, free cash flow, and net free cash flow.
What is the main cause of poverty in Morocco?
Morocco is still a cash driven country. Almost all moroccan still use cash for most purchases . The moroccan government does not collect all taxes from all workers which affect the wealth distribution among all people. Most people, especially the older population, keep their cash at home stuffed in mattresses. This dead cash does not circulate among all people causing no jobs in the country.
What does money economy mean?
money economy is all about money u spend and all the money the economy such as cash;coins By:Ayesha
Where can one read a Johnny Cash biography?
The internet is filled with information on Johnny Cash. The Wikipedia, IMBd and Rolling Stone websites all have biographical information on the singer.
What is the fly trap on die reise?
Its pronounced Der Riese. http:/callofduty.wikia.com/wiki/Fly_Trap Go to this URL and you'll find all the information about the Fly Trap your looking for.
What are the most frequent cash 3 number drawn in Florida?
It is usually 17 and 15, you can find all the necessary information on the Florida Cash 3 website
Difference between petty cash and main cash book?
cash book is the statement which contain's the total cash information . the information includes "cash in hand & cash at bank" petty cash book is maintain by company to meet their daily expenditure
What would be the best thing to do with 100000 mark note?
Answer: invest in a mouse trap. A friend of mine was paid £10,000 cash in notes for a job. He was going on holiday, so put the cash temporarily in the attic to keep it safe from burglars... where the mice promptly ate it all.
Where can one find more information about cash?
One can find more information about cash through many forms such as a mint where they produce the money(otherwise known as cash). It depends on which aspect of cash your're referring to. Making cash, or just cash in general.
What information is needed in order to prepare a cash budget?
A cash budget begins with the starting cash balance to which cash inflows are added to get cash available.
Is there a national cash loan company?
If you are looking for more information on Is there a national cash loan company, the best place to look for the information is on www.wegivecash.com/national-cash-advances.aspx
What cash is the internets equivalent to traditional cash?
A person who gossips or carries tales
Where can you find information on Cash US?
Cash USA is a payday loan website. There are several websites online with information regarding Cash USA such as Consumer Affairs, Cashnetusa and cashusa.
Where can you get information on cash loans?
The best place to get information on cash loans is from the FTC, the Federal Trade Commission. They have a few info sheets about payday and cash loans, and their costs and benefits.
How can someone find information on cash insurance?
One can find information on cash insurance on various websites like Insurance and Insure. Both websites offer a great amount of information on insurances, including cash insurances.
