Jodi owns a business that designs and creates lingerie.In an effort to get her product into as many stores as possible,Jodi has been lenient on the terms of collection,allowing stores at least 30 days credit.As a result,it is taking her too long to collect payments and her revenues are very low.What is the MOST likely cause of Jodi's business difficulties?

Question

Quizplus · Accepted Answer

By being too lenient with credit terms, Jodi is not managing her cash flow effectively. This can lead to low revenues and cash flow problems, which are financial management issues. While goodwill, expansion, product design, and availability could all potentially impact the success of the business, it is most likely that Jodi's financial management practices are causing the difficulties described in the scenario.

Jodi Owns a Business That Designs and Creates Lingerie