Trusted by millions of Kenyans
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

Describe the impact on an organisation of having poor cash flow

Describe the impact on an organisation of having poor cash flow

Answers

Lydia
? Unable to pay expenses
? May need to find a cheaper supplier
? May have to offer discounts to encourage customers on credit to pay early
? Increased costs due to borrowing funds which is interest and bank charges
? Lack of disposable funds to invest for example to purchase new technology
? Low employee morale due to pressure to increase sales revenue
? Restricted growth as there is no funds to invest in and support growing the businesses operations
? Owner may need to reduce their drawings
? May need to sell unused assets
? May need to reduce prices of goods
? Might lead to staff redundancies
? Solvency risk/closure/administration
lydiajane74 answered the question on May 31, 2018 at 12:43

Answer Attachments

Next: Explain the benefits of preparing a cash budget.

Previous: Describe the laissez-faire style of leadership.

View more Business Studies Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions