BUISENESS MANAGEMENT
MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A strategy to meet the cash flow challenges at the Growth stage could include developing an effective credit policy
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Phase Two: Growth As sales increase rapidly, businesses start seeing profit once they pass the break-even point. However, as the profit cycle still lags behind the sales cycle, the profit level is not as high as sales. Finally, the cash flow during the growth phase becomes positive, representing an excess cash inflow.
Detailed explanation-2: -Ways to increase cash flow for a business include offering discounts for early payments, leasing not buying, improving inventory, conducting consumer credit checks, and using high-interest savings accounts.
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