What is the advantage to a small business when planning for shortfalls in cash flow?
A) Financial resources can be saved in a savings account until needed.
B) Banks are more likely to offer loans if they know when the money will be needed.
C) Loans can be obtained in advance and minimize their costs.
D) Lower interest loans can be sought for the needed time frame.
E) Small businesses will appear more professional, resulting in favorable banking relationships.

Question

Quizplus · Accepted Answer

By obtaining loans in advance, small businesses can avoid costly last-minute borrowing and better manage their cash flow.

Answer: D 
 Seeking lower interest loans for the needed time frame can help small businesses minimize the costs of borrowing and improve their financial stability.

Both options C and D could be considered the best choice(s) depending on the individual needs and circumstances of the small business.

What Is the Advantage to a Small Business When Planning