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Business Finance and Arithmetic — Entrepreneurship STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipBusiness Finance and Arithmetic1 Mark
Question
Cash flow projection is thought to be an important management tool. Why?
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Answer

Cash flow projection shows how cash is expected to flow in and out of a business during a period of time. It is an important tool for cash management as it helps an entrepreneur to assess how much cash his/ her business will need.

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