In the event that a business' cash budget forecasts a cash deficit for a short period of time, what should the business then do?

Question

Quizplus · Accepted Answer

Arranging for short-term borrowing is the most appropriate option in the event of a cash deficit. This will provide the business with the necessary funds to cover its expenses during the shortfall. Cutting costs may not always be possible, and changing the credit granting policy may have long-term implications for the business. Closing the business should only be considered as a last resort and is not a viable solution in this scenario.

In the Event That a Business' Cash Budget Forecasts a Cash