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Homework answers / question archive / What kind of measures can the CFO take to prevent the business from getting into a financial crisis? You can use any source, but do not quote exactly, summarize it in your sentences, not more than half a page, list briefly
What kind of measures can the CFO take to prevent the business from getting into a financial crisis?
You can use any source, but do not quote exactly, summarize it in your sentences, not more than half a page, list briefly.
Cheif financial officer can take various steps in order to save company from entering into financial crisis-
A.Cheif financial officer can continuously reduce the debt capital on the books of accounts of the company.
B.Cheif officer can also always try to enhance the overall liquidity of the company in form of current ratio and net working capital.
C.He should also try to enchance the cash collection cycle and inventory conversion cycle.
D.He should be trying to eliminate the costs associaed with financial distress and other losses.
E.He should be trying to maximize the profit and maximize the survival of the company in the long run and eliminate the agency cost.
