In budgeting, what does the term "burn rate" refer to?
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Mar 28
The term "burn rate" refers to the rate at which a company is spending its available funds or capital. It is typically used to measure how quickly a company is using up its cash reserves or investment funds. A high burn rate may indicate that a company is not generating enough revenue to sustain its operations, while a low burn rate may indicate that a company is efficiently managing its expenses.