Purchase Solution

Financial Policy & Strategy: Working Capital Management Strategy

Not what you're looking for?

Ask Custom Question

What is a good working capital-management strategy that would free up enough money to keep a business stable and on their feet if they were having a hard time getting the cash to pay bills for the business. Accounts receivable, inventory, accounts payable are the three accounts, and what strategy would work? What is a pro and a con of using a strategy for each of these accounts?

Purchase this Solution

Solution Summary

The solution discusses working capital management strategy.

Solution Preview

What is a good working capital-management strategy that would free up enough money to keep a business stable and on their feet if they were having a hard time getting the cash to pay bills for the business? Accounts receivable, inventory, accounts payable are the three accounts, and what strategy would work? What are a pro and a con of using a strategy for each of these accounts?

For the above situation, a very active capital management strategy is best to free up needed money that will create business stability. Managing working capital first requires working with what exists and what is generated within current payables, receivables, and inventory.

Timely flow of cash creates profits. In ...

Purchase this Solution


Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Introduction to Finance

This quiz test introductory finance topics.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.