Bachelor of Business Administration Outbound Exam

Business Finance $-$ Profit, Loss, Cash Flow, and Margins

Which one of the following is false?

A $$ Cash is the lifeblood of a business and without it the business will die.

B $$ Rapidly expanding companies can sometimes face a cash shortage.

C $$ If cash outflows exceed cash inflows on an ongoing basis, the business will eventually run out of cash.

D $$ A profitable company will never run out of cash.