The timely collection of money owed and being able to pay for the products and the services needed to run the business are critical to a positive cash flow.

Question

Quizplus · Accepted Answer

A positive cash flow is necessary for the financial health of a business, and this involves both timely collection of money owed to the business and being able to pay for the products and services needed to run it. Without these two factors, a business may struggle to stay afloat and ultimately fail.

The Timely Collection of Money Owed and Being Able to Pay