Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening 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

Chez Dove may have been able to continue operations if they had better cash management practices, such as having a cash reserve for unexpected expenses like a leaking roof. This could include regularly reviewing and adjusting their budget, monitoring cash flow, and creating a financial plan for emergencies. While better cash maintenance and targeting may also have been helpful, they would not have necessarily addressed the issue of the unexpected expense. Cash capitalization refers to the process of raising funds for a new or growing business and would not have directly impacted Chez Dove's ability to continue operations after the fact.

Chez Dove Is an Independent Coffeehouse/bookstore That Went Bankrupt Only