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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 You can use any source, but do not quote exactly, summarize it in your sentences, not more than half a page, list briefly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 You can use any source, but do not quote exactly, summarize it in your sentences, not more than half a page, list briefly.
Measures which can be taken by the chief financial officers in order to prevent the financial crisis in the company-
A. The total amount of debt ratios to be reduced in the company so there will be lower amount of solvency risk.
B. There should be appropriate management of the working capital of the company and current assets and current liabilities so that liquidity is maintained.
C. proper management of the capital structure in order to have an optimum mix which will maximize the rate of return of the company.
D. The Dividend payout policy should be properly enhanced as it will help in maximizing the rate of return.
E. Cash conversion cycle of the company is also to be properly managed and enhancing the liquidity of the company.
