cash flow problems Flashcards
1
Q
what are different cash flow problems
A
- falling demands
- rising costs
- increasing expenses
- poor credit management
- under investment
2
Q
what is falling demand
A
falling demand for a product, reduces sales
3
Q
what is rising costs of purchases
A
from over stocking, increased cost prices or pure purchase policies meaning funds are tied up
4
Q
what is funding investments
A
spending on equipment or buying non essential things
5
Q
what is increased expenses
A
over staffing, promo etc
6
Q
what is poor credit management
A
giving customers too long to pay back credits
