Which of the following could improve negative cash flow?

Get more with Examzify Plus

Remove ads, unlock favorites, save progress, and access premium tools across devices.

FavoritesSave progressAd-free
From $9.99Learn more

Study for the Farm and Agribusiness Management CDE Test. Learn with interactive quizzes and insights into the agribusiness industry. Prepare effectively for your exam!

Improving negative cash flow is crucial for any business, including agribusinesses, as it ensures sustainability and the ability to meet financial obligations. The correct answer encompasses various strategies that can be employed to enhance cash flow.

Refinancing existing debt can lead to lower interest rates, extended repayment terms, or reduced monthly payments. This action helps decrease the financial burden on the business, creating additional cash flow that can be redirected towards operational needs.

Limiting family living expenses directly impacts the personal financial situation of the owners or managers of the business. By reducing these expenses, there is an increased capacity to allocate more resources back into the business, which can help mitigate cash flow issues.

Engaging in a secondary enterprise or side business can generate additional revenue streams. By diversifying income sources, the business can reduce reliance on its primary operations, thus improving overall cash flow positions.

Combining all these approaches maximizes the potential to enhance cash flow, making it clear that each option contributes to improving the negative cash flow situation. This holistic strategy emphasizes the importance of utilizing multiple avenues to achieve financial stability.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy