Cash flow projections are not an essential part of a business plan as long as the entrepreneur provides accurate forecasts of the venture's profits.

Question

Quizplus · Accepted Answer

Cash flow projections are crucial in determining the overall financial health and sustainability of a business. Profit forecasts alone do not give a complete picture of a company's financial situation, as they do not take into account the timing of expenses and revenues. Cash flow projections are also important for identifying potential funding needs and managing cash flow during difficult periods.

Cash Flow Projections Are Not an Essential Part of a Business