Question

Rapidly growing companies often buy increasing amounts of merchandise from suppliers on credit, and then sell the goods to their customers on credit. these companies sometimes have difficulty repaying their suppliers when customers who buy on credit don't pay on time. firms that experience this difficulty need to do a better job of: generating revenue.

Answer 1

Firms that experience this difficulty need to do a better job of managing cash flows. When you manage your cash flows you are doing activities such as monitoring your cash flow regularly, cutting costs where you can, cash in assets if you need more funds available. Always make sure invoicing is done appropriately and keep accurate books of who is owed money and who owes you money.