By concentrating on cash flows within the firm the financial manager should be able to
A) prepare tax returns.
B) speak authoritatively to stockholders.
C) avoid insolvency.
D) control expenses.

Question

Quizplus · Accepted Answer

By concentrating on cash flows within the firm, the financial manager can ensure that the company has enough cash to meet its obligations and avoid insolvency. This involves monitoring and managing inflows and outflows of cash, such as timing payments and collections, managing inventory levels, and making investment decisions that generate positive cash flow. While controlling expenses is also an important aspect of financial management, it is not the primary focus when considering cash flows within the firm. Preparing tax returns and speaking to stockholders may be important tasks for a financial manager, but they are not directly related to managing cash flows.

By Concentrating on Cash Flows Within the Firm the Financial