Question

What is the main source of cash for a business?

Answer 1

The main sources of cash for a business are:
i) Cash generated from operations of a business. It refers to the cash generated from the day to day operations of a business.
ii) Cash generated from sales of assets (it is non recurring because a company can't keep on selling assets to generate cash)
iii) Cash from borrowing or taking debt. Companies pay the lenders on a regular interval when they take debt.
iv) Cash from issuing equity in the markets. Companies don't have to pay often to the equity investors in case of bankruptcy.