5
QuizMultiple Choice

Study Guide and Quiz

Question 5 • S25 Introduction to Business A (Theisen)

Which of the following tips can hurt your cash flow?

Answer
A
Increase your sales.
B
Pay your bills early.
C
Keep a cash reserve.
D
Offer credit only to low risk borrowers.

Explanation

Paying bills early can hurt cash flow because money leaves the business sooner, leaving less cash available for immediate expenses. Increasing sales, keeping a cash reserve, and offering credit only to low-risk borrowers generally support healthier cash flow, so “Pay your bills early” is the correct choice.

AI-written and checked against the verified answer.

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