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A profitable business can face liquidity problems due to timing mismatches between cash inflows and outflows. Even if a company is generating profit on paper, it might not have enough cash on hand to meet immediate obligations, such as payroll or supplier payments. Additionally, profits can be tied up in accounts receivable or inventory, limiting available cash. This situation underscores the importance of effective cash flow management, even for otherwise successful businesses.
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What is the most profitable business in Nigeria?
The most profitable business in Nigeria is the food Business. No matter how poor or rich a person is, He is bound by mother nature to feed his body atleast twice a day. It is also the most profitable because it can be started up with little capital and the profits can be measured and seen immediately
Explain the role played by imf in solving international liquidity crisis?
liquidity problem has two aspects qualitative aspects and quantitave aspects the proble,m
How easy is it to come up with profitable business ideas?
It is easy to come up with profitable business ideas if you just research and think about a product that people need or want and are willing to pay for.
Why does business need to be profitable?
Not a hard question. We do jobs to earn money, Right? In business if we don't earn any profit and make a loss then what is the point in doing it. Our aim is to MAKE money not to LOSE money, that is why business needs to be profitable to us.
Is paper cups business profitable?
Paper cups manufacturers such as Anbao Cup as annual profits of over 10,000,000 per year. Very profitable.
Why might a profitable business face liquidity problems?
No liquidity
Why is profitability more important than liquidity?
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
Is profitability more important than liquidity?
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
Is profitable company always successful in a business?
No, a profitable company is not always a successful business. Profit shows that a company is making money at a certain point in time, but true success also depends on stability, reputation, legal compliance, and long-term growth. A business may earn profits while still facing risks such as poor governance, weak contracts, regulatory issues, or unsustainable practices. Long-term success comes from strong management, clear legal structures, ethical operations, and the ability to adapt to market changes. This is why many businesses focus not only on profits but also on compliance, risk management, and strategic planning - areas where legal guidance from firms like KN Law LLP can play an important role.
Is a wrecker business a profitable business?
No!
What procedure would you adopt to study the liquidity of a business firm?
The procedure you would adopt to study the liquidity of a business firm is to compare the liquidity rations of the business. You do this by comparing the businesses most liquid assets with its short-term liabilities.
How do you spell profitabul?
The correct spelling is profitable. The business turned out to be quite profitable. Since the business was so profitable, I could afford a vacation.
Why is liquidity?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
What are the most profitable business in the world?
One of the most profitable businesses in el salvador is Bar and Restaurant Business
Why is liquidity important?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
What are the business statistics of keeping a business profitable?
georgina
What is the most profitable business in el salvador?
One of the most profitable businesses in el salvador is Bar and Restaurant Business
