Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:
Which of the following statement is/are not correct?
Options:
Cash Flow Projection shows how cash is expected to flow in and out of your business.
Cash Flow Projection is an important tool for cash management.
Cash Flow Projection will give a much better idea of how much capital investment a business idea needs.
None of the above
Correct Answer:
None of the above
Explanation:
Cash Flow Projection shows how cash is expected to flow in and out of your business. For you, it's an important tool for cash management, letting you know when your outflows are too high or when you might want to arrange short term investment to deal with a cash surplus. As part of your business plan, a Cash Flow Projection will give you a much better idea of how much capital investment your business idea needs.