What difficulties will result if an entrepreneur tracks only profits and ignores cash, or only cash while ignoring profits?


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What difficulties will result if an entrepreneur tracks only profits and ignores cash, or only cash while ignoring profits?


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Positive profits can still result in a negative cash flow. Depending on the industry, it may be more important to track cash over profits, or profits over cash. What difficulties will result if an entrepreneur tracks only profits and ignores cash, or only cash while ignoring profits? Give an example of an industry where it is more important to track either cash or profit.