Cash flow refers to the amount of money coming into and going out of a business during a specific period of time. In e-commerce or marketing, cash flow is crucial as it helps businesses understand their financial health and make informed decisions about when to invest in growth, pay expenses, or expand operations. Positive cash flow indicates that a business is generating more money than it is spending, while negative cash flow means that a business is spending more money than it is bringing in. Maintaining a healthy cash flow is essential for the long-term success and sustainability of a business.
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