What follows the storing of products in the cash flow cycle?

Prepare for the CIPS Defining Business Need (L4M2) Test with multiple choice questions and insightful explanations. Enhance your understanding and ensure success!

In the cash flow cycle, the storing of products is a crucial step that occurs after goods have been purchased or produced and are now ready for sale. The next logical step is selling products. When products are stored, they represent an investment of cash, and the objective of this investment is to generate returns through sales.

Once products are stored, businesses focus on finding customers and completing sales transactions, which then triggers cash inflow. This step is essential because selling products not only recovers the initial investment made in purchasing or manufacturing the goods but also allows businesses to generate profit. The entire purpose of storing inventory is to enable this subsequent sale, which drives the overall business operations and supports continuous cash flow.

The other options represent prior or different processes in the cash flow cycle, such as obtaining materials, manufacturing, and paying suppliers, which do not directly follow the action of storing products within the context of cash flow management.

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