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Working Capital Management / Cash Flow Standpoint

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What impact does working capital management have on businesses from a cash flow standpoint?

What are challenges associated with cross-border strategies?

© BrainMass Inc. brainmass.com September 24, 2018, 7:28 am ad1c9bdddf - https://brainmass.com/business/working-capital-management/160600

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Cash flows in a cycle into, around and out of a business. It is the business's life blood and every manager's primary task is to help keep it flowing and to use the cash-flow to generate profits. If a business is operating profitably, then it should, in theory, generate cash surpluses. If it doesn't generate surpluses, the business will eventually run out of cash and expire.

The faster a business expands the more cash it will need for working capital and ...

Solution Summary

Cash flows in a cycle into, around and out of a business. It is the business's life blood and every manager's primary task is to help keep it flowing and to use the cash-flow to generate profits. If a business is operating profitably, then it should, in theory, generate cash surpluses. If it doesn't generate surpluses, the business will eventually run out of cash and expire.

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