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Propose three strategies a firm could use in management of cash in the context of working capital financing policies.

      

Propose three strategies a firm could use in management of cash in the context of working capital financing policies.

  

Answers


Francis
Three strategies that a firm can use to manage cash in the context of working capital financing policies.
(i) Encourage customers to settle their bills earlier.
(ii) factoring – this involves selling book debts to obtain immediate cash.
(iii) Request the suppliers to modify their terms of payments
(iv) Try to minimize expenditures as much as possible
(v) Invest any excess cash to earn interest.
(vi) use cash management models like Baumol model and miller Orr models to determine the optimum cash requirements to be held.

francis1897 answered the question on November 7, 2022 at 08:47


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