Tammy has just opened a donut shop called The Rabbit Hole.Given that The Rabbit Hole is in its start-up phase,which of these would be Tammy's immediate financial management need?

Question

Quizplus · Accepted Answer

In the start-up phase, the immediate financial management need would be to conserve what little money the business has. This is because the business is just starting, and it would not have generated enough revenue to sustain it in the long term. Therefore, Tammy needs to focus on using the existing resources efficiently to ensure the business's survival and growth. Building owner's wealth, obtaining increasing amounts of cash inflows, and minimizing debt and increasing asset value are important goals, but they are not as urgent as conserving available capital in the start-up phase.

Tammy Has Just Opened a Donut Shop Called the Rabbit