AQA AS Business Studies Ch17 Improving cash flow notes

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  • Created on: 17-06-13 08:49

CHAPTER 17

Improving cash flow

70% of all business failures are due to cash flow problems

 

Causes of cash flow prolems:

v Seasonal demand

v Overtrading

o   Firms are too confident

o   Firms extend too rapidly

v Over-investment in fixed assets

o   Not leave enough working capital

v Credit sales

v Poor stock management

v Poor management of suppliers

v Unforeseen change

v Losses or low profits

 

Ways of

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