When a firm ensures that it always has enough funds on hand to purchase the materials and human resources that it needs to produce goods and services, it is exercising

Question

Quizplus · Accepted Answer

Cash flow management involves managing the inflow and outflow of funds to ensure that a company has enough cash on hand to meet its financial obligations, such as purchasing materials and human resources necessary to produce goods and services. This is achieved through tactics such as monitoring cash flow projections, negotiating favorable payment terms with suppliers, and effective debtor management. Therefore, the correct choice is A) cash flow management.

When a Firm Ensures That It Always Has Enough Funds