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13 cards from this deck
The lifeblood of business operations
Unable to meet financial obligations
Actual money available immediately to pay debts & expenses
Calculated figure: total income vs total costs over time
Timing mismatch: recording sales vs receiving cash payment
Seasonal businesses e.g. ice cream vendors
Ties up money that could be used elsewhere
Money expected to come into the business
Money the business expects to pay out
More money leaving than coming in that period
Offer incentives for early payment
Negotiate longer payment terms
Act quickly before situation becomes critical
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