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Explain the role of positive cash flow over course of year

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Reference no: EM132607279

Question a: Relative to an entrepreneur owner of a small firm seeking to expand his/her geographic footprint, explain the role of positive cash flow over the course of the year.

i. When might an entrepreneur owner decide to refrain from "taking a draw" or "payment" from his/her business? Explain.

Question b: Describe the wisdom of an entrepreneur owner "holding excess cash" or "buffer cash" over the course of a year.

i. What might the entrepreneur owner use said cash for over the course of a year? Would new product development be something he/she might use this money for? Explain.

Reference no: EM132607279

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