contestada

A business would like to invest in a new product, but they are short on extra
cash for such purposes. They are in a good position as a business, though:
Their employee costs are average, their market share is relatively high, and
they have enough inventory on hand to last for months. What would be one
good solution if they want to find extra cash for the new product?
O A. Raise prices on their inventory even if it takes longer to sell it.
B. Liquidate some inventory to increase cash flow.
C. Fire at least one employee.
D. Cut wages for all employees.

Respuesta :

anthougo

Given the scenario described herein, one good solution for the business to invest in a new product when it is short on cash is B. Liquidate some inventory to increase cash flow.

What is Cash?

In accounting, cash includes bills, coins, bank balances, money orders, and checks. Cash is the first item in most balance sheets, especially if the company is reporting liquidity.  Cash happens to be the most liquid of all assets. Cash also includes cash equivalents, which are assets readily converted into cash.

Thus, the company does not need to raise prices, fire employees, or cut wages to raise cash.  It can liquidate some inventory at lower prices if necessary.

Learn more about meeting cash requirements at https://brainly.com/question/735261