Terry Wells owns a growing company that makes innovative kitchen appliances. One thing that Terry has to continually work at is to keep enough cash on hand to make sure she has sufficient liquidity to meet her payroll and cover her other short-term obligations. The day-to-day challenge of firm growth this example is referring to is ________.
A) quality control
B) capital constraints
C) price stability
D) cash flow management
E) personnel issues

Question

Quizplus · Accepted Answer

The example specifically mentions the challenge of keeping enough cash on hand to meet short-term obligations, which is directly related to cash flow management. Therefore, the correct choice is D.

Terry Wells Owns a Growing Company That Makes Innovative Kitchen