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The Importance of the Saying, "Cash Is King"to a New

Question 45

Multiple Choice

The importance of the saying, "cash is king"to a new business is supported by which of the following?


A) A growing and profitable company can easily run out of cash and fail.
B) Many suppliers prefer to deal in cash to avoid problems with payables.
C) A high cash flow business may be unprofitable without the owner's knowledge.
D) In the short run, liquidity is a sign of profitability.
E) All of the answers are correct.

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