A high burn rate would indicate that the company is doing which of the following?
A)seeing an unexpected increase in its inventory of finished goods
B)taking in cash faster than it can spend it
C)spending cash faster than it can generate it
D)selling its inventory faster than it can produce it

Question

Quizplus · Accepted Answer

A high burn rate indicates that a company is spending a lot of cash, faster than it can generate it. It is not related to unexpected increases in inventory, cash inflows or selling inventory faster.

A High Burn Rate Would Indicate That the Company Is