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Businesses need to make a profit. Profit provides capital for expansion and a return on their...

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Finance

Businesses need to make a profit. Profit provides capital forexpansion and a return on their investment to the owners of thebusiness. Do businesses also need to generate cash? Can a businessbe profitable and yet run out of cash? What is characteristic of abusiness that generates lots of profits but doesn't have enoughcash to operate.

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Business can carry out their sales on 2 way which are given below 1 Sales done on cash basis Here transaction is done by providing goods or services to customer for taking cash on the spot in return 2 Sales    See Answer
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