Rapidly growing companies often buy increasing amounts of merchandise from suppliers on credit,and then sell the goods to their customers on credit.These companies sometimes have difficulty repaying their suppliers when customers who buy on credit don't pay on time.Firms that experience this difficulty need to do a better job of:
A)Generating revenue.
B)Controlling inventory.
C)Managing cash flows.
D)Balancing assets with liabilities.

Question

Quizplus · Accepted Answer

The issue described in the scenario is a cash flow management problem, as the company is struggling to repay suppliers due to delays in receiving payment from customers. Therefore, the best choice is managing cash flows. While generating revenue and controlling inventory are important aspects of managing a growing company, in this scenario, they do not directly address the problem at hand. Additionally, balancing assets with liabilities is a broad concept that may not specifically address the cash flow problem.

Rapidly Growing Companies Often Buy Increasing Amounts of Merchandise from Suppliers