Felix runs Green Zone Inc., a nursery and landscaping venture. His business flourishes during spring and early summer, but he made most of his inventory purchases during winter of theyear before. Hence, he needs to be extremely careful about cash flow fluctuations. In this case, the capital expenditure budget would be the most beneficial option for Felix.

Question

Quizplus · Accepted Answer

A cash flow budget would be more beneficial for Felix as it helps manage the timing of cash inflows and outflows, which is crucial given the seasonal nature of his business.

Felix Runs Green Zone Inc