Cash

The video tutorial emphasizes the importance of cash management for businesses, highlighting the role of cash in navigating tough times and ensuring operational stability. It explains cash inflows and outflows, the necessity of cash flow forecasting, and strategies to manage cash effectively. The tutorial also distinguishes between cash and profit, underscoring their interconnectedness in business operations.

Why is cash considered crucial for businesses?

• It guarantees customer loyalty.

• It increases the company's market value.

• It ensures higher employee satisfaction.

• It helps businesses navigate tough times.

What is a potential risk of overtrading?

• Increased market share

• Overwhelming cash inflows

• Overwhelming cash outflows

• Higher employee turnover

Why might a business need to keep cash as a buffer?

• To pay for unexpected market changes

• To invest in new products

• To increase shareholder dividends

• To expand into international markets

What is a key day-to-day cash requirement for businesses?

• Expanding into new markets

• Paying dividends to shareholders

• Paying suppliers and employees

• Investing in new technology

How can businesses anticipate cash flow problems?

• By using cash flow forecasts

• By hiring more employees

• By reducing marketing efforts

• By increasing product prices

What is a common method to manage cash flow effectively?

• Increasing employee salaries

• Implementing cash flow forecasts

• Reducing product quality

• Expanding office space

What is a last resort for businesses facing cash flow issues?

• Reducing marketing budget

• Increasing product prices

• Seeking external financial help

• Cutting employee benefits

What is the primary difference between cash and profit?

• Cash is the company's equity, while profit is the company's debt.

• Cash is the company's assets, while profit is the company's liabilities.

• Cash is the total revenue, while profit is the total cost.

• Cash is the money in the bank, while profit is revenue minus costs.

What is a potential consequence of not managing cash flow properly?

• Business collapse

• Higher profit margins

• More investment opportunities

• Increased customer satisfaction

How are cash and profit interconnected?

• Both are indicators of market trends.

• Both are necessary for business sustainability.

• Both are measures of employee productivity.

• Both are used to calculate taxes.