Question detail
MetroMove serves premium buyers while launching a product; the case evidence includes labour productivity of ?3,198, sales of 748 units, and a 37% change in costs or demand. Which option best applies Explain consequences of cash flow problems and effects of positive cash flow?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Cash flow
Question
- A. Use cash flow to judge labour productivity, lenders impact, and the business objective in Cash flow forecasting and interpretation.
- B. Give only a definition of Cash flow without using the case evidence.
- C. Treat cash flow and profit as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use cash flow to judge labour productivity, lenders impact, and the business objective in Cash flow forecasting and interpretation.
Explanation
Choose this response because Use cash flow to judge labour productivity, lenders impact, and the business objective in Cash flow forecasting and interpretation. The case evidence gives ?4,698, 748 units, and 37%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse cash flow and profit, miss the lenders, or ignore the business objective.
Common mistake
Cash flow forecasting and interpretation common mistake 1
Giving a vague answer instead of directly addressing: Explain consequences of cash flow problems and effects of positive cash flow..
Answer by clearly explaining how to explain consequences of cash flow problems and effects of positive cash flow..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.