Which of the following statements concerning cash management is false?
A)Cash is the most important, yet least productive, asset a small business owns.
B)Young companies tend to be "cash sponges," soaking up every available dollar of cash.
C)Fast-growing businesses are least likely to experience shortages.
D)Cash management involves forecasting, collecting, disbursing, investing, and planning for a company's cash needs.

Question

Quizplus · Accepted Answer

Fast-growing businesses are actually more likely to experience cash shortages because they typically require more cash to finance their growth. Therefore, statement C is false. A, B, and D are all true statements.

Which of the Following Statements Concerning Cash Management Is False