An often overlooked cause of cash shortage is the growth trap.

Name: An often overlooked cause of cash shortage is the growth trap.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The growth trap occurs when a company experiences rapid growth and requires more cash to fund its operations, but its cash flow is tied up in accounts receivables or inventory. This can lead to a shortage of cash that can hinder the company's growth unless it can find alternative sources of financing.

An Often Overlooked Cause of Cash Shortage Is the Growth