Which of the following is a solution for managing cash flow?

Managing cash flow is essential for the health of any business, and stock control plays a crucial role in this process. Effective stock control ensures that a company maintains the right amount of inventory on hand, preventing overstocking and understocking situations. Overstocking ties up cash in unsold goods, while understocking can lead to missed sales opportunities and potentially dissatisfied customers.

When businesses actively manage their inventory levels, they can improve cash flow by minimizing excess expenses related to storage and spoilage and ensuring that capital is not unnecessarily locked up in inventory. This also allows for better cash management as the company can predict cash flow needs more accurately based on inventory turnover rates.

On the other hand, investing in new technology, increasing hiring, or planning for global expansion can all require significant upfront capital and may not have an immediate positive impact on cash flow. These strategies might be part of long-term growth but are less directly focused on managing cash flow in the short term compared to effective stock control practices.