Insight Box Concept Check 03 Cash burn rate measures the spend with which canh is being depleted, say on a monthly basis, why is the cash bum rate important to the survival of a t a company? companies with low cash burn rate are generally key to be high tech companies which are tightly funded and controlled by venture capitalists and have a poor chance of survival as funding is likely to dry up when there is a slowdown A company's cuthburn rate determine how long it can fast during an economic downtum. 1 it has a righ cushion in terms of available cath, its chances for survival are better. O A high cash bum rate means that a company can generate revenue at a fast pace which is good for long term survival A public company should spend high amounts of th during a downturn in order to survive, irrespective of how much cash it has in the bank because it can always raise funds through sale of stock and issuance of debt securities in the market. Click if you would like to show Work for this question Coen Show Work