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Why do profitable businesses face liquidity problems?
Profitable businesses can face liquidity problems due to a mismatch between cash inflows and outflows. Even if a company is generating strong profits, it might still struggle to convert those profits into cash quickly enough to meet immediate obligations, such as payroll, supplier payments, or unexpected expenses. Additionally, factors like high levels of accounts receivable, slow inventory turnover, or significant capital investments can further strain cash flow, leading to liquidity issues despite overall profitability.
Why might new technology cut the costs of a business?
People are constantly finding more innovative and efficient solutions to problems.
How might you measure a company's liquidity and short-term debt paying ability?
CALCULATE CURRENT RATION Type your answer here...
What are the reason people go into business?
People have a great business idea they want to realize. People earn not enough money. People have problems on their work. People are fed up with their 8/5 job. People are unemployed. And there might be a lot more reasons.
What types of business strategies might best be supported by recruiting externally?
Some businesses are able to overcome challenges with thinking creatively when they recruit from the outside. They overcome problems with their internal culture doing this.
Why do profitable businesses face liquidity problems?
Profitable businesses can face liquidity problems due to a mismatch between cash inflows and outflows. Even if a company is generating strong profits, it might still struggle to convert those profits into cash quickly enough to meet immediate obligations, such as payroll, supplier payments, or unexpected expenses. Additionally, factors like high levels of accounts receivable, slow inventory turnover, or significant capital investments can further strain cash flow, leading to liquidity issues despite overall profitability.
How might a statement of cash flows be used?
You might use it to apply for credit (a loan).
What is good about a casino?
It makes money off people with gambling problems. It is a highly profitable business and it provides jobs. The good thing about casino is that it might relieve your stress and you might find it entertaining and humorous.
how does a chartered accountant contribute to a country?
They make sure that the business is being operated in a profitable way and by this the business will grow leading to an increase in productivity and might increase the GDP of the country.....
What are some of the non-profitable businesses?
a non profitable business could be something like a school or a college. They are NON-PROFITS because they do not made money in the way a profitable business might. The sole purpose of a non-profit is to volunteer a service without profiting from it, such as a hobby, social club, senior citizen centers, area chess club etc.
Does information technology improve profitability and productivity in companies?
It depends on what you consider as information technology, an ipad might not be that much 'profitable' for a given business but might be for another. So please ask specifically.
What is the difference between a profession and a business?
A profession is a line of work, such as the medical profession, the accounting profession, etc. A person working in a profession might have his or her own business, or might be working for another person's business. A business is a company, it is an organizational structure for some commercial or profitable purpose. For example, a store is a type of business. If you work in a store, you are in the retail sales profession.
What problems might a public limited company face as a catering business?
close down
What are the risks in business expansion?
Personal, business, and competitive risks may occur when one wants to expand their business. These are just a few problems one might run into when expanding their business.
What are the positive effects of advertisement to the success of a business?
Are you serious? You either need advertising or a great reputation. If you operate a "boutique" business (small, highly profitable client base) you might be able to get away with not advertising. Otherwise, if you don't advertise in some way, you're not in business.
What does it mean if a cat comes into your business place?
Strictly speaking, it means that a cat has come into your place of business. It may also mean that it smells food or has seen something in your place of business that would suggest hunting there might be profitable; or that there is someone there who has been feeding or petting it.
Why might new technology cut the costs of a business?
People are constantly finding more innovative and efficient solutions to problems.
