What term refers to the movement of cash in and out of a business?

The term that refers to the movement of cash in and out of a business is Cash Flow. Cash flow is crucial for understanding a company's liquidity, operational efficiency, and overall financial health. It encompasses all cash transactions, including revenue from sales, payments for expenses, investments, and any other financial activity that affects the cash available to the business.

In a practical sense, positive cash flow indicates that a company has sufficient liquidity to fund its operations, invest in growth, and meet obligations. Conversely, negative cash flow can be a red flag, indicating potential financial distress.

Other terms mentioned have their specific meanings: run rate refers to extrapolating current financial performance into the future, burn rate describes the speed at which a startup expends its venture capital, and runway indicates the time a company can operate before requiring additional funding. While all these concepts are important for evaluating a startup's financial situation, cash flow specifically captures the ongoing cash movements in and out of the business.