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If cash is short because payments arrive late despite rising demand, which function is required?

Answer and explanation

Correct answer: Cash-flow management

Cash-flow management tracks when money enters and leaves the business. A business may have strong sales or accounting profit but still lack cash if customers pay late while wages, materials, and bills are due earlier. Managing payment terms, collections, reserves, and spending timing addresses this issue better than promotion, stopping production, or automatically reducing price.

Related tags

Cash-Flow ManagementLate PaymentsBusiness FinanceQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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