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Why profitable business has liquidity problem?
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.
Why do single firms in perfectly competitive markets face horizontal demand curves?
Gdbugufifudusks
What problems bahamian farmers face?
they face lack of irrigation
What are the oligopoly problems with customers?
In an oligopoly, where a few firms dominate the market, customers may face limited choices and higher prices due to reduced competition. Firms may engage in price-fixing or collusion, leading to a lack of innovation and stagnant products. Additionally, the interdependence of firms can result in coordinated behavior that disadvantages consumers, such as maintaining high prices or reducing quality. Ultimately, customers may feel the negative effects of reduced market responsiveness to their needs and preferences.
How are inefficient firms affected by the reduction in trade restrictions among countries and the continuous increase in international trade?
Inefficient firms face increased competition from more efficient international competitors when trade restrictions are reduced. This heightened competition can lead to a loss of market share, forcing inefficient firms to either innovate, improve their productivity, or reduce costs to survive. If they fail to adapt, these firms may face declining profits or even exit the market altogether. Ultimately, the pressure from international trade can drive overall market efficiency by encouraging less competitive firms to either improve or leave.
Why might a profitable business face liquidity problems?
No liquidity
Practical problems firms face due to the changing business environment with regards to reward policies?
What are the practical and theoretical problems firms face due to the changing business environment with reguards to reward policies
What computer problems do engineers and engineering firms face?
information security,memory managment and access control related problems
What are some of the unique problems small businesses may face in global expansion that larger firms would not?
the cost of living and the difference in economy
What problems do multinational firms face?
That the other company whants to be better than that one and that one whants to be better than the other one
What are community Emergency Operations Plans based on?
1. Problems that have been face by the company before. 2. Problems faced by other companies before. 3. Input from research firms 4. Clear thinking and disaster preparation.
What are the Problems and solutions facing management and leadership consulting firms in Nigeria?
In Nigeria, leaders are chosen through a democratic process of election. Leaders normally face a lot of problems including lack of resources, poverty, corruption, and constant conflict.
What problems do the Amish face?
what problems to the amish population face
Is profitability of the firm important in the short term debt paying ability of a firm?
Yes, profitability is important for a firm's short-term debt paying ability, as it influences cash flow and the capacity to meet immediate financial obligations. A profitable firm typically generates sufficient income, which can be used to cover short-term liabilities. However, liquidity also plays a crucial role; a firm may be profitable yet still face challenges if it lacks sufficient liquid assets. Therefore, while profitability is significant, it should be considered alongside liquidity to assess short-term debt repayment capability effectively.
What problems did the face?
what problems did the face what...? Sorry i don't speak stupid!! speak english!
What problems did Hinduism face?
No problems at all.
What problems do cities face?
Many cities face all sorts of different problems. They face problems of poverty, crime, injustice, unemployment, education issues, and environmental issues.
