Unfortunately, most firms lack liquidity. To make sure there is sufficient cash flow to meet day-to-day financial needs, financial managers adopt short-term financing methods to raise needed capital to meet debt obligations in time while maximizing profitability through investment with cash surpluses.
Discuss a management strategy used to retain or increase cash. Share an example of a time when you’ve used a similar strategy in your personal finances. How are the applications of these strategies similar or different for businesses and individuals?
WE WRITE PAPERS FOR STUDENTS
Tell us about your assignment and we will find the best writer for your project.
Write My Essay For MeSAMPLE SOLUTION
One of the most critical aspects of any business is cash flow. Poor cash flow management can push a business to failure even if it is profitable. Strong business leaders understand that maintaining a healthy cash flow is vital to business growth. They also comprehend that extra and enough money should be kept aside to cater to unexpected expenses or reduced sales.
Increasing commodity or service prices is one of several ways to improve cash flow fast. Increasing prices will have an immediate effect on your bottom line if the operation’s cost has not gone up. Just ensure that customers are aware of the price change in advance.
Re-examining your stock is another way to improve cash flow. Conventional knowledge dictates that a large portion of their incomes originate from 20 percent of their commodities for most businesses. In that case, assess the best and worst sellers, and…
Order Original and Plagiarism-free Papers Written from Scratch:
