Finanzas ComercialesPregunta 1132 de 1632
Poor cash flow on a construction project is MOST often caused by:
a.Paying suppliers early to take their discount
b.Holding retention back from all the subcontractors
c.Billing the owner monthly rather than weekly
d.Paying labour and materials before billings land
Explicación
The structural cause is timing: wages and material invoices fall due weeks before the owner pays a progress billing, and retention delays part of the receipt further still, so cash drains even on a profitable job. Taking an early-payment discount does consume cash, but it buys a return and is a choice rather than the cause. Monthly billing lengthens the gap and makes the problem worse, without being its origin. Withholding retention from subs conserves the contractor's cash rather than draining it.
Practica las 1632 preguntas gratis — sin registro.
Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →
Preguntas relacionadas de este tema
- A good estimate should include a contingency allowance primarily to:
- Working capital is calculated as:
- A contractor has current assets of $150,000 and current liabilities of $90,000. What is his working capital?
- Why can a contractor be profitable on paper yet still run out of cash?
- A contractor offers 2/10, net 30 terms and pays a $10,000 supplier invoice on day 8. How much does he pay?
- A cash flow projection primarily helps a contractor:
Última revisión: · proceso editorial
Equipo de PrepPass · Verificado con California CSLB Contractor License Law & Business Exam · Cómo revisamos
Revisado por Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verificar)