Which of the following firms would be expected to need the most cash to conduct its daily operations?
A)a retail grocery store that sells on a cash only basis
B)an electronics manufacturer that only assemble its goods once they have been paid for
C)an airline that has many of its fares pre-paid by cash or credit card
D)an aircraft manufacturer with large inventory and long development and sales cycles
E)a clothing retailer that accepts both cash and credit payments

Question

Quizplus · Accepted Answer

An aircraft manufacturer with large inventory and long development and sales cycles would be expected to need the most cash to conduct its daily operations. This is because the company would need to invest heavily in research and development and maintain a large inventory of expensive components and materials. Additionally, sales cycles for aircraft are typically long, meaning that the company may need to hold onto inventory for extended periods before generating revenue from sales.

Which of the Following Firms Would Be Expected to Need