Earth Worm is an independent bookstore that went bankrupt due to an unexpected demand for cash to fix a leaking roof. Which of the following activities might have allowed the business to continue operation?

Question

Quizplus · Accepted Answer

Better cash management could have allowed Earth Worm bookstore to continue operation. This would involve improving cash flow through activities such as better inventory management, increasing sales, reducing costs, negotiating better payment terms with suppliers or lenders, or exploring alternative sources of funding. While better cash maintenance, targeting, and capitalization are important, cash management is essential for the day-to-day operations of the business and its ability to stay afloat.

Earth Worm Is an Independent Bookstore That Went Bankrupt Due