Earth Worm is an independent bookstore that only eight months after opening went bankrupt due to an unexpected demand for cash to fix a leaking roof.Which of the following activities might have allowed the business to continue operation?
A) better cash maintenance
B) better cash targeting
C) better cash management
D) better cash capitalization

Question

Quizplus · Accepted Answer

Better cash management would have allowed the business to continue operation by ensuring that cash was being budgeted and allocated effectively. This could have included strategies such as regular cash flow forecasting, minimizing expenses, and improving payment collection from customers. Better cash maintenance (A) may have helped prevent unexpected expenses, but it would not have addressed underlying cash flow issues. Better cash targeting (B) and better cash capitalization (D) are not relevant to the situation, as they relate to specific investment or fundraising activities rather than overall cash management.

Earth Worm Is an Independent Bookstore That Only Eight Months