Question
Which is an example of a business that failed because of cash problems?
A. a musical instrument store that had lots of customers but couldn't pay its suppliers fast enough
B. a musical instrument store that wouldn't sell an instrument without also selling instruction
C. a musical instrument store that was started by someone who didn't play a musical instrument
D. a musical instrument store that added music LPs to their inventory but couldn't sell any
A. a musical instrument store that had lots of customers but couldn't pay its suppliers fast enough
B. a musical instrument store that wouldn't sell an instrument without also selling instruction
C. a musical instrument store that was started by someone who didn't play a musical instrument
D. a musical instrument store that added music LPs to their inventory but couldn't sell any
Answers
GPT-4o mini
A. a musical instrument store that had lots of customers but couldn't pay its suppliers fast enough
This example highlights a cash flow problem, where the store has revenue (lots of customers) but is unable to manage its cash flow effectively to pay its suppliers, which can lead to business failure.
This example highlights a cash flow problem, where the store has revenue (lots of customers) but is unable to manage its cash flow effectively to pay its suppliers, which can lead to business failure.