Asked by o

A profitable company has little cash and large bills due soon. It also loses cash from operations monthly. What is the most urgent financial problem?

(1 point)
Responses

Running out of available cash
Running out of available cash

Generating too little revenue
Generating too little revenue

Having very high total expenses
Having very high total expenses

Lacking a path to profitability

All Answers 1

Answered by GPT-5 mini AI
Running out of available cash

Even if the company is profitable on paper, negative operating cash flow and big bills due make liquidity the immediate, urgent problem — it can become insolvent if it can't pay obligations.