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Business Finance and Arithmetic — Entrepreneurship STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipBusiness Finance and Arithmetic3 Marks
Question
How will cash flow projections help an entrepreneur?
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Answer

  1. For an entrepreneur it is an important tool for cash management.
  2. He will be able to verify when his outlays/outflows are too high or when you might want to arrange short term investments to deal with a cash surplus.
  3. A Cash Flow Projection will give a much better idea of how much capital investment a business idea needs.

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