Rob is the new bookkeeper at your one-year-old company.Your business provides travellers in North America with access to people's apartments for rent for short-term accommodation.Your biggest competition is Air BnB.You have noticed that your website traffic is going up exponentially as word is spreading,and there are starting to be occasional system crashes and lost reservations.You need to rebuild your servers and related infrastructure,but your cash flow is not keeping up with the reinvestment required.Because you had planned carefully for this event,you knew this time might come.It is time to call in a potential investor to provide a capital injection because your ________ is/are lagging behind increasing demand.

Question

Quizplus · Accepted Answer

The scenario mentions that the company's cash flow is not keeping up with the reinvestment required to rebuild their servers and related infrastructure. This indicates that their annual profits are lagging behind the increasing demand. Therefore, the best choice in this scenario is D) annual profits.

Rob Is the New Bookkeeper at Your One-Year-Old Company