Firms in turnaround situations find that cutting administrative expenses and inventories and speeding up collection of receivables provide no real value.

Question

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A study of 260 mature businesses in need of a turnaround identified three strategies used by successful companies. One of these strategies is asset and cost surgery. Firms in turnaround situations try to aggressively cut administrative expenses and inventories and speed up collection of receivables.

Firms in Turnaround Situations Find That Cutting Administrative Expenses and Inventories