Text: Entrepreneurial Small Business (5th Edition)

Chapter 13:

1. What are the three primary causes of cash flow problems faced by a small business? Explain cash flow management using the cash-to-cash cycle.
2. What are the three primary purposes of money and the different forms of money?
3. What are the three sources from which cash can be obtained for a business?
4. Cash is money, but it's only one form of money. Businesses use a concept called cash equivalents. Briefly define cash and cash equivalents and identify the different forms of cash equivalents.
5. What is reconciling? What are the four purposes for reconciling differences in the bank and book balances?
6. What are the two reasons for differences in the bank and book balances?
7. Describe the process of creating a cash budget.
8. What are the preventive steps taken to protect a business from having its cash drained by employees?
9. What are the different techniques used by a business to increase cash inflow and decrease cash outflow?
10. Define growth trap. Discuss the strategies that small businesses can employ for coping with cash shortages.