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According to the poll conducted by the National Federation of Independent Business (NFIB), small business faced cash flow problems because of:

A. delayed payments from customers.
B. lack of seasonal fluctuation in sales.
C. delayed payments from vendors.
D. unexpected increases in taxes.

User Tom Claus
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Final answer:

Small businesses face cash flow problems mainly due to delayed payments from customers, affecting their investment capacity and leading to potential layoffs, lower demand, and even reduced access to loans.

Step-by-step explanation:

According to the poll conducted by the National Federation of Independent Business (NFIB), small businesses faced cash flow problems mainly because of delayed payments from customers. This issue is critical as it directly affects the ability of a business to maintain its operations, invest in physical capital, and create jobs. When businesses experience cash flow issues, this can lead to a reduction in these critical investments, potentially resulting in layoffs and a decrease in overall demand for products and services. Moreover, it can initiate a negative cycle where decreased financial stability of businesses makes financial institutions less inclined to offer loans, further exacerbating the cash flow problems.

User DavidGSola
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