Finance - Cash flow and working capital - Cash flow
6 important questions on Finance - Cash flow and working capital - Cash flow
Why is cashflow almost never equal to net profit?
- Get paid promptly
- Don't pay directly their own purchases
- Generates sales cash can be reinvested into the business
What is the breakeven point (BEP)?
Why has a follower (imitator) invest less in order to develop a product?
- Learning effects
- Reverse engineering
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
What are the consequences of fierce competition?
- Price product drops
- Market attractiveness shrinks
- Profitability shrinks
What is the definition of window of opportunity?
What are the advantages/disadvantages of being a first mover (innovator)?
- Larger window of opportunity
- Larger cumulative cash flow
- Ability to protect it's IP
- Exclusive arrangements with the best suppliers
- Set standards in the market
- Gain customer loyalty
- Higher investment
- Technical uncertainty
- Commercial uncertainty
- Higher risks
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
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